Rebuilding Your Credit

[martha75]

I am in the process of purchasing my home.  Just yesterday I was suppose to receive my preapproval letter.  Well, my world came crashing down yesterday morning.  I woke up to an email with a credit score change.  I logged onto myfico.com and low and behold, I had a new collection account! WOW!  My score took a 33 point dive.  I called the CA immediately because I assumed that since I was calling the day that the debt had been applied to m acct that they would consider a PFD. NOPE!  Nothing!  I paid the creditor in full hoping that this would help.  Well I got my rejection letter yesterday.  Here is the thing, towards the end of last year, the original creditor was DELETED from my credit report, so I assumed that the debt was not valid.  Now, many months later it pops up as a collection.  I have paid the collection in full but the damage is done. I am desperately trying to get this removed so that I can move forward with the purchase of my home. 

[Oyiwaa]

Martha,

Sorry about your predicament - I am about to enter the housing market, but worried about COs showing up in the process .... well, take heart, and reapply.  I am sure there is a light at the end of the tunnel.

cheers, Oy

[cgreer72]

If you paid the OC I would by all means call them! Have them send you confirmation that it was paid and get that proof to the collection company.

I had a similar thing happen to me but I was actually in the middle of the loan process and the underwriter pulled another report and low and behold...a new collection account appeared and they denied the loan, and I lost the house. BUT!... five months later I did what I had to to get my score back up and found a much better house. So don't get discouraged, it will work out.

[Shogun]

+1  See if you can get that removed.  Also make sure you opt out!

[RobertEG]

The only option you might have under the FCRA is if the deletion by the OC of their reporting resulted from a dispute you filed.

In that event, no other party can have the deleted information reinserted unless they first provide pre-certification of its accuracy to the CRA, and the CRA has accepted that pre-certification.  If the CRA had received any such pre-certification, they were required to have sent you notice to that effect within 5 business days of their reinsertion, so they obviously did not do so.  FCRA 611(a)(5)(B).

However, if the OC deletion was on their own, and not the result of their failure to have provided verification in a dispute, any party can reinsert the information without any special provisions.

[LIGHTNIN]

Locking thread due to similar thread found here..http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/NEED-ADVICE/m-p/1652792

OP, I combined your threads to avoid confusion but most of all, to give to the best advise as possible.

LIGHTNIN, myFICO Moderator