> In the absence of credit scores, higher quality borrowers will be charged higher interest rates or require higher collateral, since they are less differentiated from average quality borrowers, and/or access to credit will be restricted to a narrower proportion of the population.

Given we're talking about alternatives here, I think this should be: "In the absence of credit scores, or some other mechanism for comparing potential borrowers". There's lots of ways to compare borrowers, and if you assume credit scores are the only way to do it, all your solutions are going to involve them.