credit reporting

Credit reporting is the process of collecting and maintaining information about an individual's credit history, which includes their borrowing and repayment behavior. Credit bureaus gather data from banks and lenders to create credit reports. These reports show how much credit you have, your payment history, and any debts. Lenders use this information to assess your creditworthiness when you apply for loans or credit cards. A good credit report can lead to better interest rates, while a poor report can make it harder to borrow money. Monitoring your credit report is essential for understanding and managing your financial health.