True or False: Financial institutions typically do not use credit reports for decision-making purposes.

Financial institutions actively utilize credit reports for a variety of decision-making processes, making the statement false. Credit reports provide crucial information regarding an individual's credit history, outstanding debts, and overall creditworthiness. This data is essential for assessing risk when evaluating loan applications, setting interest rates, and determining whether to approve credit cards or other financial products.

In addition to new loans, credit reports are routinely referenced for other services, including but not limited to credit limit adjustments, account management, and even employment background checks in some cases. As such, financial institutions rely heavily on these reports to make informed decisions and mitigate potential risks associated with lending and credit decisions. This comprehensive use underscores the importance of credit reports in the financial industry, clarifying why the answer is false.