Paying debts doesn’t always help your credit score

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It is generally accepted that if you pay off your debts, your credit score will go up. This is believed because it makes sense logically. If you pay off a debt, you owe less and you are more able to handle your other obligations. However, there are some instances where paying a debt actually hurts your credit score. Here’s why. When you have a collection account or a judgment on your credit report, the impact it has on your score is directly related to the age of that account. Unfortunately, when there is any activity on those types of accounts, they are treated as if…
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