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In this video, George Anderson discusses how to handle collection accounts on credit reports. He emphasizes that even after paying off a collection account, it can still negatively impact your credit score, as it may appear as a new collection account with a zero balance instead of an older paid account. This change in reporting can diminish your creditworthiness. Anderson highlights that addressing negative items on credit reports through credit bureaus is one approach, but the challenges increase when accounts are already settled. He suggests exploring other strategies to mitigate the effects of such accounts on your credit report.
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