New Delhi, May 7 -- A credit report is a comprehensive record of your credit-related activities compiled by credit bureaus. It includes detailed information about your existing and past loans, credit card usage, repayment behavior, outstanding balances, defaults (if any), and even the number of times lenders have inquired about your loan application. This document serves as a financial biography that reflects how responsibly you've handled borrowed money over time.

Based on the data in your credit report, a credit score is computed, a three-digit number, typically ranging from 300 to 900, that represents your creditworthiness. The higher your credit score, the more favorably lenders view your ability to manage credit. These two tools, th...