Credit reporting is the process of collecting and maintaining information about an individual's credit history. This information is compiled by credit bureaus, such as Equifax, Experian, and TransUnion, which track how individuals manage their debts, including loans and credit cards. The data includes payment history, credit utilization, and any bankruptcies or defaults. Credit reports are used by lenders to assess the creditworthiness of potential borrowers. A good credit report can lead to better loan terms and lower interest rates, while a poor report may result in higher costs or loan denials. Individuals can check their credit reports regularly to ensure accuracy and address any discrepancies.