What is a credit report?

A credit report is a detailed record of an individual's borrowing and repayment history. It is maintained by credit reference agencies and used by lenders and financial institutions to assess the creditworthiness of individuals before extending them credit. The report includes information such as personal details, credit accounts, balances, payment history, and any defaults or arrears. It also includes public records like bankruptcy or court judgments. The credit report serves as a summary of an individual's financial history and behavior, giving lenders an insight into their ability to manage credit responsibly. By reviewing this report, lenders can make informed decisions about whether to grant credit, determine interest rates, or set credit limits. Regularly monitoring and maintaining a good credit report is essential to improving financial opportunities and securing favorable credit options.