Final answer:
The Truth in Lending Act of 1968 requires the disclosure of certain financial details of a credit transaction but not maintenance costs. To reassure a bank to give out a loan, a borrower can offer collateral, showcase a steady income, present a robust business plan, maintain a good credit score, or secure a co-signer.
Step-by-step explanation:
The Truth in Lending Act of 1968 requires lenders to disclose certain information to consumers about the financial aspects of a credit transaction. Among the information that must be disclosed, lenders are not required to provide information about maintenance costs associated with the products being financed. They must, however, provide information regarding the total sale price, the annual percentage rate (APR), and the payment amounts.
For someone seeking a loan, reassuring the bank in the presence of imperfect information about their ability to repay can involve several strategies. Offering collateral strengthens the assurance that the bank can recover their money even if the borrower defaults. Presenting a detailed business plan or a record of steady income helps demonstrate the borrower's capacity to manage the loan responsibly. Having a good credit score and history also reassures the bank of the borrower's creditworthiness and reliability. In some cases, securing a co-signer with a solid financial background can improve the borrower's credibility.