I am applying for a mortgage and stupidly did not look at my credit reports last year. Last month, my loan officer made an inquiry and sent me my credit score. I thought it would be really great as I've never been late on a payment for anything, but was shocked to find a collection for $100 reported and a score of less than 700. I did receive a call from the collection agency late last year, but I thought it was a scam as I get tons of scam calls every day trying to get money. The call referred to a dentist bill, which I thought was strange because I pay off my balance every time I leave the dentist's office, so I actually went to the dentist and asked about it. They said they had never heard of this collection agency, which confirmed to me that it was a scam. Turns out they didn't know what they were talking about because apparently they sent me a statement in the mail for something my insurance didn't cover, which I never saw, and then they sent it for collection.
Once I found out it was real last month, I paid it off right away on 4/30. Date of 1st delinquency was 11/27/2019 and date assigned as 6/19/2020 if that matters. After the payment, the collection agency deleted the collection from my credit reports, which I verified by checking my reports from all 3 bureaus on annualcreditreport.com. My VantageScore from my bank said that my credit score this month has gone from "good" to "excellent," and my free FICO score from Experian says it is currently 788.
However, my mortgage loan officer says that these are not accurate and that the collection is still on my "true" credit report and will remain in my history for many years, and it will impact the rates I will be able to get. She said a letter from the dentist is the ONLY way to truly get this collection removed. Is this true? I called the office today and they would not help. I plan to go to talk to them in person but am worried they will say no. My loan officer also said she could pull my credit score again but that there is a risk the score may have gone down, I assume from the first time she pulled it.
I signed up for Extra Credit on credit.com and all the mortgage scores for Equifax and TransUnion were >780 (couldn't see Experian, but the loan officer said they take the middle score). Will the lender really see something different than what I am seeing? I learned that a mortgage over $150,000 will trigger different credit reporting rules so will she see a lower score? Should I risk asking her to pull it again? Thanks!
It could still be on other lesser known CRAs as the aggregate information. You need to check with Lexis Nexis and Innovis to start. In the meantime just get a letter from the CA that is has been paid or get it from the dentist. Something else to be aware of with mortgage lenders is anytime the loan is 150K+ then they can request a full factual report which will show items that have been excluded from your reports this is the action he is referring to as your "real credit report". Normally they wont show items over ten years old but there have been exceptions.
Thanks! I requested reports from LexisNexis and Innovis but it sounds like they will take a couple weeks to arrive. Will the mortgage lender's full factual report show a lower credit score? I do have documentation that it is paid off, but she said that won't help, I need a letter from the dentist saying that the collection was sent in error. The dentist is not willing to say that, and even if I were able to get that, I'm not sure what to do with it, as when I go to EX/TU/EQ there is nothing to actually dispute.
The FICO scores are generated from algorithms using datea listed in your general reports from the bureaus - while the request for >150k can generate a more complete report, I don't believe they use that to generate a new score.
UW is going to look at your overall file, not just the score.
@fico_questioner I wouldn't have the mortgage representative pull another credit report . . . I recommend that you access all 3 CRAs websites for your direct report; stay away from Credit Karma and those type of services and deal directly with the CRAs. Did the Collection Agency (CA) provide a deletion letter? If so, I recommend that you contact the Executive Offices of each CRA. Wishing you success in resolving this issue to your satisfaction.
@babygirl1256 They didn't provide a deletion letter, they had sent an email saying "As a data furnisher to the credit bureaus (Experian, Equifax, and Trans Union), we reported this account as being delinquent. However, this office agrees to promptly notify the credit bureaus to delete the above referenced account from your credit report once the total balance is paid-in-full." After they sent my payment receipt, it appears to me based on looking at my EX/TU/EQ credit reports they did notify the credit bureaus to remove it. Should I ask them to send me a deletion letter? And if my credit score really has improved, what would be the reason to not ask the mortgage representative to pull another report? Wouldn't that help me get a better interest rate? Thank you!
@fico_questioner If they did notify the credit bureaus to remove it, for your records, I'd ask them to send you a deletion letter. It's pretty sad that your dental office refuses to clear this issue up. Did you speak with the dentist or just his administrative staff? The mortgage representative will probably pull another report before closing so I'm not sure what impact multiple mortgage inquiries would have on your credit. I read @gdale6 posting and perhaps Moderator gdale6 can provide further guidance on your path forward actions. I'm hoping that the issue is resolved to your satisfaction.
@babygirl1256 thank you I hope so too. I spoke with the administrative staff, the person I spoke to today said she will talk to her manager and try to get a letter for me on the dentist letterhead. If that doesn't work, I plan to contact the dentist directly. I think they really do not want to say anything like this was sent to collection "in error" or anything that would make it sound like they are admitting a mistake on their part. I suggested that maybe we could wordsmith it to make it sound like it just happened this way, especially because things were complicated during the first few months of COVID which is when this was sent to collection. The mortgage representative said they will not be doing another full credit report, just a "credit refresh report" 5 days prior to closing to make sure we haven't applied for new credit, created new debt, or increased existing debt.
@fico_questioner Awesome . . . Perhaps they office could state something like, "As we worked through the COVID-19 pandemic an unpaid balance of $XXX.XX was inadvertently sent to collections. We are attempting to resolve this issue on behalf of Mr./Ms. XXXXX XXXXX and your immediate attention is greatly appreciated."
Totally agree with @babygirl1256 on this one. I'd make it very clear that they are in jeopardy of losing a customer. You gotta be kidding me. I'd do whatever necessary to assist a customer in clearing up a credit issue.