The answer, of course, would depend on a number of factors: Who is this person? Do you know her well? Do you trust her? How much money does she want to borrow? Has she ever borrowed money from you before? Did she pay you back on time? Do you have money to lend? What will you do if she doesn't, or can't, pay you back?

Businesses ask similar questions when you apply for credit. They get many of the answers by reviewing a copy of your credit report.

A Decision-Making Tool
If you are one of the millions of people in the United States with a credit card, charge account, car loan, student loan, or home mortgage, then information about you probably is stored in a credit bureau database.

Most of the information in your consumer credit report comes directly from your current creditors. Credit bureaus compile the data and then provide it to lenders when you ask for a new credit card or loan.

The credit report's purpose is to help a lender decide whether to grant you credit.

What a Consumer Credit Report Contains
The typical consumer credit report includes four types of information:

• Identifying information: your name (including generation, such as Sr., Jr., III), nicknames, current and previous addresses, Social Security number, year of birth, current and previous employers and, if applicable, your spouse's name.
  
• Credit information: the accounts you have with banks, retailers, credit card issuers, and other lenders.
  For each account, your credit report will list the type of loan (revolving credit, student loan, mortgage, etc.), the date you opened the account, your credit limit or loan amount, the account balance, whether anyone else besides you (your spouse or cosigner, for example) is responsible for paying the account, and your payment pattern during the past two years.
  
• Public record information: state and county court records related to bankruptcies, tax liens, or monetary judgments. In some states, credit reports list delinquent child support payments.
  
• Inquiries: If a potential employer obtains a copy of your credit report, your report will contain a record of that inquiry for two years. For other purposes, inquiries will remain on your report for one year.

What's Not in a Credit Report
Almost as important as what is in your credit report is what isn't.

Your credit report does not contain any information about your race, religious preference, medical history, personal lifestyle, personal background, political preference or criminal record.

How Do You Rate?
Remember the friend who asked you to lend her money?

Before telling her your answer, you'll examine her request and decide whether she's credit worthy based on your own experiences, needs and financial abilities. If you turn her down, perhaps someone else will be able to help her.

Similarly, when you apply for credit, different lenders may make different decisions based on the same information. What's different is the importance they give to specific factors--how long you've lived at the same address, for example, or the amount of unused credit you currently have.

In all cases, the credit bureau's role is only to provide credit information. Credit bureau's do not "rate" you as a good or bad credit risk. Nor do they take part in any credit-granting decision. That's the sole domain of the lender.