alt Hacker NewsLet's take your credit score example for a second. There's a similar argument elsewhere here but why do you think the 800+ credit score loan rate (let's say $500/mo for the sake of argument) is the base rate, and anyone paying more than $500/mo is getting screwed? Is it not equally likely that the default is the highest payment there is?
Obviously reality is probably somewhere in the middle.
I think that because I've not seen anything that requires an 800+ credit score anywhere. I'm not saying it doesn't exist whatsoever, but by far the most common way to set credit score-based incentives that I see is that there's a really low bar, probably in the 600s or the low 700s, where you get the 'standard' rate or are allowed to apply for some service, etc. Having a better score doesn't improve the deal for you, all you need is to just clear the extremely low bar. You're either OK and get treated like everyone else, or you're not and you get penalized. That's what makes me think that this rate is the default, there's no rewards for getting a higher score anymore.
And it makes sense from the lender perspective too - credit scores are ubiquitous now, you don't need to lose money by giving your customers sweet deals and rewards to get them into the credit scheme. Everyone must have a credit score now to exist in society, so why would they spend money on these loss-leaders?