A credit report is a detailed record of an individual's credit history, compiled by credit bureaus. It includes information about loans, credit cards, payment history, and any bankruptcies or foreclosures. Lenders use this report to assess a person's creditworthiness when they apply for loans or credit. Credit reports are important because they influence the interest rates and terms offered to borrowers. Individuals can request their own credit report to check for accuracy and monitor their financial health. Regularly reviewing your credit report can help you identify potential errors or signs of identity theft.