Credit Report

A Credit report is a detailed record of an individual’s Credit history, prepared by a Credit bureau. It includes information such as personal identification details, Credit accounts, payment history, outstanding debts, and public records like bankruptcies or Liens. Lenders use Credit reports to assess an individual’s Creditworthiness when applying for loans, Credit cards, or other financial products.

For example, if John applies for a mortgage, the lender will review his Credit report to determine his Credit-score/">Credit Score and evaluate his ability to repay the loan. If John’s report shows late payments and high debt levels, the lender may view him as a higher risk and either deny the application or offer less favorable terms.

In another case, Sarah applies for a new Credit card. The issuer Checks her Credit report, which reveals a history of on-time payments and low Credit utilization. This positive information leads to her approval and a favorable Interest Rate.