Should lenders avoid loans to individuals with poor credit or a history of delinquency - or should they provide the loans at a higher rate knowing there is an increased risk of default? Granted, higher rates can sometimes result in a higher likelihood of default as repayments become too burdensome for the individual... so, perhaps a Catch 22 situation in which the lender creates the situation and promotes default... but, that goes back to the original question: should lenders avoid loans to individuals with poor credit or a history of delinquency?