What is a credit report?

A credit report is a comprehensive document that outlines an individual's credit history. It includes crucial information such as the individual's borrowing and repayment patterns, outstanding debts, credit accounts, and payment history. Lenders use this report to evaluate the creditworthiness of a borrower when considering loan applications or credit lines. The data within a credit report is vital for assessing the risk of lending money to a potential borrower and helps inform decisions about whether to extend credit, the terms of the loan, and the applicable interest rate.