Denied! Bummed out

[zoe505]

Today I had a LO pull my credit because I thought my scores were high enough to qualify for a loan...my fico score pulls were 603, 649 and 669...This would have given me a middle score of 649. I knew the lender pull would be different but I didn't expect that much of a difference..turns out my middle score from the lender is 603...I have an old credit card debt for $330 that Jefferson Capital purchased which is totally ruining my credit. My LO said they are reporting monthly and on some reports they are reporting twice!

I am now really bummed because we have found a house we want but it may not be on the market long enough for me to get my credit score up.

[ShanetheMortgageMan]

Sorry to hear.  Most lenders are looking for a 620 or 640 for FHA financing but there are some out there going down to a 580 or 600, and I know of a couple lenders who are doing 500 credit scores on FHA now.  Rates below a 620 aren't pretty though.

Is Jefferson Capital a collection agency?  If so, then as far as I am aware of they cannot be reporting anything monthly, they can only report when they purchased the collection account.  If they are the original creditor, then from my previous research in the credit cards section here at the FICO forums, I've found they are legally permitted to keep on reporting you late each month until it's paid off or the statute of limitations runs out (which at that point it'd fall off credit).  For $330 though I'd see if they would do a pay-for-delete.

[los_west]

Don't get discouraged just yet.

Did you by any chance verify what your LO said against your own copies of the reports?  Is this debt valid?  Is it reporting correctly, and within the scope of the law? Have you tried to pay for deletion?

Did the LO by any chance offer you any suggestions on what can be done so that you could qualify?

[DallasLoanGuy]

agree with shane.... pay for delete.....

[zoe505]

I have tried several times to get Jefferson Capital to agree to PFD but they refuse to do so. They just won't budge. They are a collection agency that is trying to collect on a salute card account....as far as I know they are not the original creditor. I will have to do more research  on this.

My LO said to just pay them off so they will stop reporting monthly....so I did. I will keep working on my credit and hopefully I can get in up within a few months. Jefferson capital was the only current baddie on my report but I guess it was really dragging it down.

[los_west]

Is this Salute Card part of the FTC ruling?  If so, they (Jefferson Capital) may be required to remove the TL.  

I had a similar type card that was part of the FTC ruling, and after a quick filing with the BBB, JC agreed to remove it.

[zoe505]

Actually after finding the orginal acceptance notice from my Salute Gold card it was issued by compucredit in 2008...It was a $300 limit but they immediately hit me with $150 membership fee and I had to pay $30 for acceptance in addition to them charging me something like $1.50 per month for a cardsafe program ...So I am thinking this was part of the FTC ruling....off I go to the BBB to file my complaint. Wish me luck!

Hopefully, I can get it removed and raise my score!

[dzemboc77]

I had to pay off an old collections from 2008 (figured that going into it) My Consumer credit score jumped 35 points the next month after paying it. It was considered settled for full. I never had any luck with pay for deletes. My Mid score was 639(this was before I paid it off and they didn't even want to repull the following month when I app'd for my mortgage)  and had no problems getting an FHA so far.  My credit is less than perfect with 3 or so collections settled in the past year.  I was affraid my score was going to be too low but in reality my lender said the work with people in the mid 500's.