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 maintained by credit bureaus, which collect data from various financial institutions. Individuals can request their own credit report to check for errors or to understand their financial standing. Regularly reviewing your credit report is important for maintaining good financial health.