Final answer:
The public records section of a credit report includes information such as bankruptcies and tax liens, which are pertinent to lenders when assessing creditworthiness. A credit report helps the lender to make a fair credit decision based on financial history and behavior rather than discriminatory factors. Securing a loan might also involve a cosigner or collateral as additional security for the bank.
Step-by-step explanation:
The public records section of a credit report may contain information regarding D) Bankruptcies and tax liens. This section includes legal items that are part of the public record and can heavily influence a lender's decision. Information such as employment history, payment history on current loans, or personal references, while vital to the overall credit report, does not appear in the public records section of the report.
Lenders assess the creditworthiness of borrowers using a variety of financial information. Credit history is crucial because it reflects how reliably a borrower pays back their loans and credit card bills. Lenders also review other factors like savings and other investments to make a fair credit decision, thereby disregarding discriminatory factors such as race, gender, religion, etc. Furthermore, if a borrower has a history of poor credit, it does not haunt them forever - credit scores can improve over time with responsible financial behavior.
In terms of securing a loan, banks may consider additional measures such as requiring a cosigner or collateral to mitigate risk. The cosigner is legally obligated to repay the loan if the original borrower defaults, while collateral items can be seized and sold by the bank to recover the loan amount if necessary.