Credit 101: What you need to know about collections

Collections are the most common and most damaging items on credit reports. 1 in 3 Americans has at least one collection account on their credit file.

There’s only so much that a collection agency can do when pursuing a debt. They can:

Call and mail you to get you to make payment arrangements

Report the debt on your credit report and/or

File a lawsuit

Look up your state’s statute of limitation to…