What is a credit report?

A credit report is a comprehensive document that outlines an individual's credit history. This report includes detailed information about past credit accounts, such as credit cards and loans, showing how much credit was extended to the individual, their payment history, and any outstanding balances. It also contains information on the individual's credit inquiries, which occur when creditors request to review the report as part of the application process for credit.

The significance of a credit report lies in its role in determining creditworthiness; lenders rely on this information to assess the risk of lending money or offering additional credit. A solid credit history reflected in the report can help individuals secure loans at better interest rates and terms.

Other options do not accurately capture what a credit report is. For example, a record of spending habits is more related to personal finance tracking rather than credit reporting. Similarly, a summary of bank accounts pertains to banking activities and balances rather than credit history, and a list of investments focuses on assets rather than credit status. Thus, the correct answer is that a credit report is specifically a record of your credit history.