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by Laura Adams

One of the most common topics that Money Girl readers and podcast listeners ask me about is credit. So I decided to do a roundup of the most frequently asked credit questions. I’ll cover 5 questions here and 20 more in a video over at SmartMovesToGrowRich.com. Today’s Sponsor: MozyPro Online Backup: Simple, Automatic & Secure Backup 

Question #1: Will Paying Off a Balance in Collections Increase My Credit Score?

Collection agencies specialize in pursuing delinquent debts either as agents for creditors or by purchasing debt and then attempting to collect it. Never ignore a debt so long that it gets turned over to a collections agency because that will definitely cause your credit score to plummet. Kay asks: I checked my credit score and saw that it dropped over 120 points due to a small balance that just went to collections. If I Read more…