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In this video, George Anderson addresses how to handle collection accounts on your credit report. He highlights that even if a collection account is paid and shows a zero balance, it can still negatively impact your credit score. Paid accounts can be updated on the credit report, transforming them from older collections into newer ones. This change can decrease your credit score, as it makes the account appear more recent, despite being settled. Anderson emphasizes the importance of knowing your options for disputing or managing these accounts through credit bureaus to mitigate their effects on your credit report.