Final answer:
If a loan is denied based on a credit report showing delinquencies, the company must disclose the reporting agency's name to the applicant. Delinquencies are reportable up to seven years, not ten. Loan reassurance can be provided to banks through income details, a cosigner, or collateral.
Step-by-step explanation:
When considering the application of Maria who has a credit report with some delinquencies but a generally good payment record, it is not true that her delinquencies can be removed just because her record has been generally good. Delinquencies can be reported for up to seven years, not ten. If a company denies her the loan based on her credit report, legally they must inform her of the name of the credit reporting agency that provided the report, ensuring transparency and allowing her the opportunity to check and potentially dispute any incorrect information.
Lenders make decisions based on credit history to evaluate the likelihood of repayment. Even if the applicant has had some late payments, this doesn't haunt her forever, and she has the ability to improve her credit score over time. Additionally, banks often consider other factors like savings and investments.
Someone looking for a loan can reassure the bank by providing income information, having a cosigner, or offering collateral. These measures can help banks mitigate the risks involved with lending due to imperfect information about a borrower's likelihood of repayment