Credit Cards Center Credit cards from our partners
Reply
Valued Member
Posts: 56
Registered: ‎03-09-2013
0

USDA and Collections

Do you need to pay off Collections in order to qualify for USDA? i am looking at an August/Sept. Close. I am at 610 middle score and should be able to get that to 640 by then. I have 7 collections now ( 4 are Mediacl ). Do i need to get all 7 paid off ?

Regular Contributor
Posts: 208
Registered: ‎04-15-2009
0

Re: USDA and Collections

The USDA doesn't specify in their underwriting guidelines if unpaid collections must be paid.  What they do state is that if an individual has any derogatory credit items, explanations must be submitted to explain the items if your credit score is below a 620.  Most lenders will require a letter of explanation for derog items anyway.  As far as paying the colllections, that may or may not be an overlay requirement that your lender has above what the USDA says.  


Starting Score: EX 575/TU 534/EQ 570
Current Scores per Myfico: (As of 12-14-13) EX 690/EQ 685/TU 679
Goal Score: 720


Take the myFICO Fitness Challenge

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.