[bombcar]

The argument is that advantaged groups (privileged communities) get to build their life on credit and quickly become doctors and lawyers and such, and that denying loans to people who haven't proven the ability to repay (or who do not have people to co-sign) prevents them from getting a leg up on the pile. There's something to it.

But what we have seen is that the banks and companies prey on the disadvantaged people pretty effectively; note the absolute magnitude of student loans given to poor students for degrees that don't show a practical repayment opportunity.

And there's also the argument that easy access to very-low interest rate credit precisely is what is causing house prices to be so astronomically high - if credit isn't as available.

The overall practical result would be an increase in the cost of credit and a slowing of the economy. Disadvantaged groups could be assisted in other ways, however; the way we try to do it is not necessarily the only possible way.