The problem is this also means you will be completely opting out of the credit system. No more morgtgages, no more credit cards, no more car loans.
I'm afraid it's kind of a necessary evil.
Finance isn’t the only area that uses reputation judge people. I imagine we’ve all been asked for references when applying for a job or an apartment. Jobs and apartments manage to get by without a centralized score.
Mortgages predate credit scores by centuries. It’s demonstrably not necessary.
As for getting a loan from a banker you’ve never met, my point exactly. They’re a convenient evil.
There is already a good number of lending options available to the many (millions?) of people disenfranchised from the traditional banking system. Usually that means offering strong collateral.
But the terms of those options aren’t too great because trustworthiness and risk have a strong negative correlation. And those who can prove their trustworthiness almost always prefer to do that rather than pay extra.
Isn't this the definition of a red flag? All you are is a profile to them so any unusual activity is going to draw scrutiny whether it's warranted or not. They have to do due diligence.