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They don't want to give a loan to someone who has a high risk of defaulting on payments. Your collections accounts need to be clear and your credit score will go up a little when that happens. Just resolving an outstanding collection debt will help your reputation with the new lenders.

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โˆ™ 2006-04-16 16:22:45
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Q: When applying for a mortgage loan why do the lenders want you to pay off all outstanding collection debt on your credit report if this could lower your score and will not help you?
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