What does a credit report provide?

A credit report provides a detailed account of an individual’s credit history, which includes information such as the individual's credit accounts, payment history, amounts owed, credit inquiries, and public records related to creditworthiness. This comprehensive summary allows lenders to assess the risk of lending money to an individual, as it reflects how responsible they have been with their credit obligations in the past. The credit report serves as a vital tool in evaluating an individual's financial behavior, making it essential for obtaining loans, credit cards, and even for renting agreements.

In contrast, a credit report does not summarize savings, provide information on government financial policies, or list bank accounts held by an individual, which are aspects covered by other financial documents and statements.