What is a Credit Report? A selected, short excerpt from Chapter 4 of The Secrets About Good Credit and Debt Reduction Also known as consumer reports and credit checks, credit reports are documented records of background information and credit activity or inactivity on every individual with a social security number in this country. The credit system issues credit reports to determine our level of performance as adults and consumers, just as the education system issues grade reports to determine the level of academic performance. We can't discuss credit reports without discussing credit-reporting agencies or credit bureaus. A credit-reporting agency gathers information such as where you live and work, what legal actions have been filed, what bills you have, and how you pay those bills. This information about you is then sold to creditors, employers, insurers, and other businesses. Credit-reporting agencies are private businesses. They are not government agencies. The Fair Credit Reporting Act (FCRA) enforced by the Federal Trade Commission and your state Attorney General clearly states how credit-reporting agencies must conduct their business and what your rights are as a consumer. (see Chapter 7: Know Your Rights)