What is the primary purpose of a credit report?

The primary purpose of a credit report is to evaluate a person's ability to obtain new credit. This document compiles a detailed history of an individual's credit activities, including their borrowing and repayment patterns, amounts owed, credit inquiries, and length of credit accounts. Lenders, such as banks or credit card companies, utilize this information to assess the creditworthiness of a potential borrower, which is essentially an evaluation of their likelihood to repay the borrowed amount. A strong credit report with positive indicators reflects a responsible borrowing history, which increases the chances of obtaining new credit, while a report with negative marks may lead to denial or higher interest rates.

The other options relate to financial aspects but do not pertain to the primary function of a credit report. For instance, investment portfolios are assessed through different financial statements and reports, while personal expenditures are usually tracked by budgeting tools rather than a credit report. Retirement savings, on the other hand, are managed through specific accounts and financial planning tools that are not reflected in a credit report. Therefore, option A accurately encompasses the fundamental role of a credit report in personal finance.