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In this video tutorial, George Anderson discusses how to handle collection accounts on your credit report, particularly when they are marked as paid. Even after paying off a collection, it can still negatively impact your credit score, as it may appear as a new collection account with a zero balance rather than an older one. This change can occur due to updates from credit bureaus, which reset the age of the collection entry. Anderson emphasizes the lack of leverage consumers have with paid accounts that still show up on their credit reports, highlighting the importance of understanding credit reporting and managing negative items effectively.
