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 people manage their debts, including loans and credit cards. Lenders use this data to assess the creditworthiness of potential borrowers. A credit report includes details like payment history, outstanding debts, and the length of credit accounts. It helps lenders decide whether to approve a loan or credit application and can influence the interest rates offered. Regularly checking your credit report can help you understand your financial standing and identify any errors.