Past history correlates with future performance, but not necessarily 100%. People who have always paid back loans sometimes default. People who have really bad credit sometimes start making payments again. And in any case, it's entirely useless if the person has no past history to look at, which is what this is for.

>Risk is entirely a calculation of the lender, and any miscalculation thereof leads to a vicious cycle of repeatedly shafting the unlucky.

Good thing we are using 21rst century computers and machine learning algorithms on vast amounts of data. At no time in history were lenders able to make predictions so accurately. If there are miscalculations, they are less than would be otherwise.