A credit report is simply a document that outlines your credit history.
The report contains details of your last residence, employment
history, payment history, whether you’ve declared bankruptcy, and
other personal information relative to your finances.
Credit reports are made available by what’s known as a "consumer
reporting agencies" and the most common type is a credit bureau.
By collecting important personal financial data, they make your credit
history available to lenders, credit card companies, insurance
companies, department stores, employers [with your consent], mortgage
companies, and even landlords.
Credit bureaus make a profit by collecting and selling your personal
information. They comb public records to see if you have any previous
foreclosures, tax liens, or court judgments against you. They combine
this information with your payment habits to form a summary of your
credit history. Creditors or lenders then evaluate your report and
determine if you meet the right criteria to qualify.