A credit report is a comprehensive record of an individual's or a company's credit history and financial activity. It is compiled by credit reporting agencies, also known as credit bureaus, and provides detailed information about an entity's borrowing and repayment behavior over time.
Typically, a credit report includes personal or business identification details, such as name, address, date of birth, and social security number. It also includes a summary of credit accounts, both current and closed, with details regarding the lender, type of credit, loan amount, outstanding balance, payment history, and account status.
Furthermore, a credit report contains inquiries made by lenders or creditors when evaluating an individual's creditworthiness. These inquiries can be either "hard" or "soft" inquiries, which indicate whether an application for credit has been made. Hard inquiries are typically generated when an individual seeks new credit, such as a loan or credit card, and may temporarily impact the individual's credit score.
Besides credit information, a credit report may also contain public record data, such as bankruptcies, tax liens, and civil judgments, which can significantly affect an individual's creditworthiness.
Credit reports are indispensable tools used by lenders, employers, landlords, and other entities to assess an individual's financial responsibility and evaluate the risk involved in extending credit or entering into a business relationship. Regularly monitoring one's credit report is vital to identify any errors or fraudulent activities, and to maintain accurate records of financial activity.
