Which of the following best describes a credit report, and which of the following is NOT typically included in a credit report?

• A. A credit report is a record of an individual's credit history; it typically includes personal identification, credit accounts, payment history, public records, and credit inquiries. Employment salary is NOT typically included.
• B. A credit report is a list of all purchases made by an individual; it includes receipts, product warranties, store memberships, purchase locations, and itemized expenses.
• C. A credit report is a government-issued document listing tax payments; it includes tax returns, property taxes, income taxes, tax refunds, and tax audits.
• D. A credit report is a summary of an individual's bank account balances; it includes checking account numbers, savings account balances, investment portfolios, credit card PINs, and loan interest rates.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of a credit report. A credit report is a record of an individual's credit history, which is used by lenders to assess the creditworthiness of a borrower. It typically includes personal identification information, credit accounts, payment history, public records, and credit inquiries.
2. Step 2: Identify what is NOT typically included in a credit report. Employment salary is not part of a credit report, as it focuses on credit-related information rather than income details.
3. Step 3: Analyze the incorrect descriptions provided in the problem. For example, a credit report is not a list of all purchases made by an individual, nor is it a government-issued document listing tax payments or a summary of bank account balances.
4. Step 4: Compare the correct description of a credit report with the incorrect options. This helps to clarify why the correct answer is accurate and why the other options are not relevant to the concept of a credit report.
5. Step 5: Conclude that the correct description of a credit report is the one that includes personal identification, credit accounts, payment history, public records, and credit inquiries, while employment salary is NOT typically included.