lesson-eleven

Lesson 11: Credit and Collections — What You Should Know

🎥 Watch the lesson video below. The quiz will unlock once 95% of the video has been watched.

📘 Read What You’ll Learn Before Watching The Lesson

When a debt isn’t paid for several months, the creditor may turn it over to a collection agency. This can hurt your credit score — but knowing your rights and how to respond can help minimize the damage.

In this module, you’ll learn what happens when a debt enters collections, how it affects your credit report, and the legal protections available under the **Fair Debt Collection Practices Act (FDCPA)**. You’ll also learn how to negotiate or settle debts the right way — without falling for scams.

  • Understand what collections are and how they impact credit.
  • Learn your legal rights when dealing with debt collectors.
  • Discover how to handle or remove collection accounts responsibly.
🔒 The quiz will unlock once 95% of the video has been watched.

🎯 Quiz: Credit and Collections

1. What does it mean when an account goes to collections?

2. How long can a collection stay on your credit report?

3. What is one right you have under the Fair Debt Collection Practices Act (FDCPA)?

4. What’s a smart way to handle a debt in collections?

5. What can sometimes be negotiated with a collection agency?

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