Posted on: 01st Oct, 2012 02:26 am
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? My mid score is 675, so hopefully this will help me?
Hi Korvvy,
It is always better to pay off a debt. Paying off any delinquent credit account will have a positive impact on your credit with time. So, if you can afford to pay off the debt, then I will suggest you to pay it off and get rid of it?
Thanks,
Jerry
It is always better to pay off a debt. Paying off any delinquent credit account will have a positive impact on your credit with time. So, if you can afford to pay off the debt, then I will suggest you to pay it off and get rid of it?
Thanks,
Jerry
Hi Korvvy!
Welcome to forums!
Paying off the debt will improve your credit scores. However, you won't be able to see the changes immediately. Nevertheless, have this collections account affected your USDA loan in a negative way?
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Paying off the debt will improve your credit scores. However, you won't be able to see the changes immediately. Nevertheless, have this collections account affected your USDA loan in a negative way?
Feel free to ask if you've further queries.
Sussane
USDA Rural Development loans are very flexible with their underwriting guidelines, even in this economy. Speak to your mortage contact/broker who is processing the loan for you and see what the underwriter will accept. Chances are if your mid is 675 and this is the only recent blemish, you'll be fine. They look harder at the property you are buying.
Cheers,
Cheers,