09-29-2012 10:07 AM - edited 09-29-2012 04:03 PM
I'm so mad! I applied for a USDA direct loan a couple weeks ago - I checked my credit and everything looked good. I got a copy of my credit report back from the USDA and now I have a collection showing up that was just reported this month from a charge back last year in 2011. I only owe $117 and can immediately pay it off, but is it even worth going through the process now or am I pretty much screwed?
Edit: My mid score is 675, so hopefully this will help me?
09-30-2012 08:29 PM
I'd take steps now to remove it via a PFD letter to the CA.
The damage varies per report. Obviously paying it won't help you any, but a new paid or unpaid collection reporting can ding your score by quite a bit. I'd certainly pull EQ on here if reporting to at least have an idea. Your lender would be using the same version.
09-30-2012 08:32 PM
Did they say if you are pre-approved? I went USDA Guaranteed so the MB went over my CRA reports personally. Call the Department personally yourself and see what needs to be done.
10-01-2012 06:59 AM - edited 10-01-2012 07:01 AM
I went USDA Direct and right before I applied I had a collection show up on my report. It was also under $150. I could have disputed it because the CA was illegally reporting but my scores were all over 660. So, I decided to ride it out and see what happened. It was never an issue because of my scores. I applied at the end of February and closed mid-July. By the way I just had the collection removed off of my reports last week.
Your local field office where you applied should be able to tell you if it is a problem though. I would check with them to make sure. I have noticed that different field offices interpret things in different ways.
10-04-2012 07:41 PM - edited 10-04-2012 09:45 PM
Thanks for the information everyone...I sent in a PFD to the CA so I'll see what happens. I haven't heard anything from the USDA office about it yet. I'll give them a call tomorrow and see what they say, hopefully it won't be a problem.
10-11-2012 01:19 PM
Let's hope not. You did opt out right?
10-14-2012 01:00 PM
Well the good news is the CA mailed me a reply that they would remove the collection from my credit report if I pay them.
The bad news is they want me to pay them by tomorrow, which is funny since I only got the letter in the mail yesteday.
Unless they take a credit card over the phone I'm not sure how that would even be possible. It's almost like the purposly put a early date on it knowing it's nearly impossible to pay them on time.
What a joke.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO