What is the main purpose of a credit report?

The main purpose of a credit report is to assess a person's creditworthiness. This report is a comprehensive record of an individual’s credit history, detailing how they have managed their debts, including payment history, amounts owed, length of credit history, types of credit used, and any public records such as bankruptcies. Lenders and financial institutions utilize this information to evaluate the likelihood that a borrower will repay their debts on time. A favorable credit report can lead to better interest rates and loan terms, while a poor credit history may result in higher rates or loan denials.

Investment strategies, tax liabilities, and savings account information are unrelated to the core purpose of a credit report, which is strictly focused on credit management and financial behavior as it pertains to borrowing and credit use.