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Established Member
SquirrelParty
Posts: 17
Registered: ‎12-03-2012

Questions about how FICO scores disputes

Does anyone know how FICO reacts to the following,

 

1. Experian and Equifax show recent lates on mortgage, but Trans Union does not.

Does this inconsistency weigh on my Equifax FICO, or is the only thing they look at is equifax?

 

2. I dispute the mortgage lates on equifax and experian - TU still current.  So now Ex and Eq show "item in dispute".

Any change to FICO score from filing the dispute?

 

3.  Lets say both disputes get resolved to remove the lates on EQ and EX.  I assume removing lates will increase my credit score, but by how much, since TU never showed these as lates?

 

I will find out in a month but wondering if anybody here has been throught this

thanks!

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Questions about how FICO scores disputes


SquirrelParty wrote:

Does anyone know how FICO reacts to the following,

 

1. Experian and Equifax show recent lates on mortgage, but Trans Union does not.

Does this inconsistency weigh on my Equifax FICO, or is the only thing they look at is equifax?

 

2. I dispute the mortgage lates on equifax and experian - TU still current.  So now Ex and Eq show "item in dispute".

Any change to FICO score from filing the dispute?

 

3.  Lets say both disputes get resolved to remove the lates on EQ and EX.  I assume removing lates will increase my credit score, but by how much, since TU never showed these as lates?

 

I will find out in a month but wondering if anybody here has been throught this

thanks!



1) I'm unclear on your first question. If you have a late reporting on your mortgage and is showing on EX and EQ, then FICO will score that late on EX and EQ, but not TU since it isn't reporting there.

 

2) FICO will ignore certain aspects of OC accounts only during a dispute. It will ignore your balance, CL (not applicable here), and your payment history. Therefore the late is ignored by FICO. Any score gain would depend on the severity of the late, the recentness of that late, and both in relation to your overall credit. For example, if it is a 30-day late from 2007, then there would be no score change on the late alone because it isn't hurting. Or if the late occurred 6 months ago, but have recent COs or CAs reporting then you wouldn't see any gains because it's minor in relation to the baddies. Conversely, if your report is pristine and the late happened last month, then you stand to see a gain once the comment appears.

 

If the dispute is verified, then the points gained, if any, will go away. If the late goes away, then the score stays the same as it was once the dispute was initiated, with everything else being equal.

 

3) I think I know where you are driving at in #1....each CRA has it's own FICO. You actually have dozens of different FICO scores, but that's a different topic. Your TU FICO wouldn't change, all else being equal, because there was no change to begin with. Now there's a risk of the late being added to TU if accurate and your FICO could change due to that. But once the lates are removed off EQ and EX then the score will remain unchanged because any score change would have occurred at the time of the dispute.

Established Member
SquirrelParty
Posts: 17
Registered: ‎12-03-2012

Re: Questions about how FICO scores disputes

[ Edited ]

thanks!  Yeah that is valuable information, exactly what I was getting at.

 

I half suspected the EQ FICO was *only* dependent on their own scoring, but I wasn't sure.

 

Las December I got an annual credit report from all 3 CRAs, and all 3 showed a few lates on my mortgage from last july, which was incorrect for a variety of reasons.   I wasn't aware of the dispute process, and instead I called my mortgage company and they agreed the lates were erroneous, and said they removed them, which I took on face value and dropped it.

 

Then I applied for a refi this month and Wells Fargo said my credit scores were fine but I can't do a refi if there are any recent lates on any mortgage in my credit file.  So I knew those lates weren't removed.

 

I went to the 3 CRA websites to dispute the lates from my annualcreditreport from December (I was still in the window to dispute) and I discovered Transunion had, in fact, deleted the lates- they had to, because my hard copy of the free report had those lates, but when I tried to dispute they were gone.  Equifax and Experian had no change from December.  I guess my mortgage company only reports to TU, but I thought there was some sort of sharing going on between the 3 CRAs were if one showed an activity, then they all should.  Oh well.

 

thx again for the info.

Squirrel


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