According to the Federal Trade Commission (FTC):
If you’ve ever applied for a credit card, a personal loan, or insurance, there’s a file about you. This file is known as your credit report. It is filled with loads of information from where you live and how you pay your bills to whether you’ve been sued, arrested, or have filed for bankruptcy. Consumer reporting companies sell the information in your credit report to creditors, insurers, employers, and other businesses with a legitimate need for it. These purchasers of your report use the information to evaluate your applications for credit, insurance, employment, leases and more.
Having a good credit report means it will be easier for you to get loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments.
Negative information on your credit report can be costly to you in many ways. The best way to repair these blemishes and restore your credit report is through repaying your bills.
Only time, a deliberate effort, and a plan to repay your bills will improve your credit as it’s detailed in your credit report.
-FTC
*Please understand that this is a communication from a debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose.