The adverse consequences of informational imperfections for financial markets were analysed in the 1970s by Joseph Stiglitz and George Akerlof; work for which they received the Nobel Prize. The etymology of the word “credit” is the latin verb “credere”; to trust or believe.
Unfortunately trust alone is rarely sufficient to ensure that a creditor will ever get her money back; hence credit decisions must be made on the basis of accurate, reliable data. Without such data creditors will be reluctant to risk their money.