What is a credit report?

• A. A summary of your monthly bank account balances.
• B. A report of your investment returns.
• C. A forecast of future credit scores.
• D. A detailed record of your credit history, including loans, credit cards, and payment history.

Answer: (D)

A credit report is a detailed record of your credit history that lenders use to judge your ability to repay. It lists each credit account you have or have had—loans, credit cards, mortgages—along with when you opened them, their current status, your balances, and your payment history, including any late payments or defaults. It may also include public records (like bankruptcies) and the number of times you’ve applied for credit. It doesn’t show your monthly bank balances or investment returns, and it isn’t a forecast of future scores. Lenders use the information in the report, often with your credit score, to decide whether to lend and on what terms. You can check your credit report for accuracy and dispute any errors.