What is a credit report?

A credit report is a detailed report of an individual's credit history, which compiles information regarding their borrowing and repayment activities. This document includes data such as credit accounts, payment history, outstanding debts, and inquiries made by lenders. Lenders use credit reports to assess an individual's creditworthiness, which helps them determine the likelihood of the borrower repaying a loan. This is crucial for making informed lending decisions and understanding the risks involved in extending credit.

The other options focus on different types of personal information that do not directly relate to assessing creditworthiness. For instance, job history, cash transactions, and investment performance are not relevant to a person's credit report. Thus, the second option accurately encompasses the purpose and content of a credit report, serving as a key component of an individual's financial profile.