Credit reporting refers to the process by which information about an individual's credit history is collected, analyzed and presented in a report. This report is used by lenders or other financial institutions to assess the risk involved in extending credit to that person. The information contained in these reports includes details such as payment history, outstanding debts, credit limits, and public records related to bankruptcy or judgments. Credit reporting agencies collect this data from various sources including banks, credit card companies, and other lenders, and use it to generate a credit score that reflects the individual's financial reliability. This score is used by lenders to determine whether to approve an application for credit, and if so, at what interest rate. Overall, credit reporting plays a crucial role in the extension of credit, helping to ensure that borrowers are able to responsibly manage their debts while also protecting lenders from financial loss.