A credit report is a detailed record of an individual's credit history. It includes information about loans, credit cards, payment history, and any outstanding debts. Lenders use this report to assess a person's creditworthiness when they apply for a loan or a credit card. A good credit report can lead to better interest rates and loan terms. Credit reports are compiled by credit bureaus, which collect data from various financial institutions. Individuals can request their own credit report to check for accuracy and monitor their financial health. Regularly reviewing your credit report can help you catch errors and protect against identity theft.