I’m asking specifically about people in the U.S. looking to borrow from a lender.
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Of note to add to all these other answers is that the greater reward, in a high risk high reward loan, comes out of the pocket of the lower credit scorer directly. And the bank or lender profits more off of the more susceptible person of lower credit score. It’s a system designed to make amassing wealth incredibly difficult.
It’s far more expensive to be poor. It even has a name: the poor (or poverty) tax. If you’re poor, you pay more in interest rates on loans, you pay more for less efficient appliances which means you also pay more in utility bills. You pay more in taxes because you can’t afford to pay accountants who can help find tax breaks and loop holes. You can’t afford more expensive healthier food, gyms and dietitians so you incur more expensive healthcare costs. This list of examples is far too exhaustive to type out. There are so many more examples and a good amount of literature out there about this subject.
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