Credit card companies primarily use a person's credit report to determine if that person should be given a loan or credit card. The credit report provides detailed information about the individual's credit history, including their payment history, outstanding debts, credit utilization, and any bankruptcies or delinquencies. This information helps issuers assess the risk of lending to that individual and make informed decisions regarding credit limits, interest rates, and approval.
The other options listed, such as figuring out ways to pay off outstanding debt or determining if someone is using a budget, are not typical uses of a credit report by credit card companies. Instead, credit reports focus more on assessing creditworthiness for lending purposes.
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