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🚨 Paying Off a Collection Could Hurt Your Credit Score (If You Do This Wrong) Most people think paying off a collection is always a good move. And long-term? Yes, it is the right thing to do. But if you’re actively applying for a mortgage, paying a collection the wrong way can DROP your score. 👇 Here’s why: When you pay a collection, the agency updates the balance to $0 — but they also refresh the “last activity date.” To the credit bureaus, that can make the collection look new, which can tem