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?