does dispute comment lower score?

[Anonymous]

Ive been in the dispute process and Ive had a couple of deletes thanks to help on here! but i had two CO come back verifyed and the disputed by consumer comment is still on the report.

1. Does dispute comments on credit report lower your score. if so why?

2. once i call the CRA and creditors to remove the comment will my score go up or down since the two were verified?

thanks!

[Anonymous]

dispute comment does not affect score, but will need to be fixed prior to getting a home loan in most cases.  They do not like open disputes.

[JM-AM]

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@Anonymous wrote:

dispute comment does not affect score, but will need to be fixed prior to getting a home loan in most cases.  They do not like open disputes.

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Having accounts in dispute can affect your scores. While accounts are in dispute it is possible they are removed from FICO scoring. Once dispute is removed it is possible to have an increase and or a decrease in FICO scores and sometimes no change at all. That is a reason why when applying for mortgage they want the disputes removed. 

[Lel]

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@Anonymous wrote:

Ive been in the dispute process and Ive had a couple of deletes thanks to help on here! but i had two CO come back verifyed and the disputed by consumer comment is still on the report.

1. Does dispute comments on credit report lower your score. if so why?

2. once i call the CRA and creditors to remove the comment will my score go up or down since the two were verified?

thanks!

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As I understand it, when certain types of tradelines (such as credit card accounts, mortgages, and charged-off accounts) are in dispute, some aspects of those tradelines are excluded from scoring.  When in dispute, the payment history (including late payments) and utilization, if applicable, are excluded from scoring.  However, the "non-money" aspects of the tradeline are still included, such as account age and mix mix of credit.

So, if someone diputes a 90 day late on 10 year old CC account, $100 balance on a $2000 credit limit, the late payment and the 5% utilization are excluded from scoring, but its age is still factored into the average age of accounts.

This does not apply to 3rd party collection accounts or public records.  Even if in dispute, they will still have a negative effect on one's credit score.

For the situation in question, because charge-offs are being dispute, I believe it is more likely that your score has increased because of the open dispute.  However, as mickie08 and JM-AM have already mentioned, open disputes can block a mortgage approval.

[Anonymous]

thanks for the help. The only two baddies on my cr are the two collections and I have a 120 day late student loan thats paid off 0 balance. one of the collections has came back verified and waiting on the other one. only one has the comment customer disputes, so any guess on how many points i will lose if i get comment removed?

when would a score go up if disputes are removed?

[Anonymous]

To clarify to other posters... The OP asked about dispute comments (not opening up a dispute)...which are typically the comments left on the CR when the dispute is over.  So NO, that dispute comment is not affecting scores and removing them, while probably required for a loan approval, will not affect FICO score.

[Anonymous]

RAD

Removinc comments has no affect on score.  During the initial dispute some items may be taken out of the FICO scoring calculation pending a decision.  Techinically this neither lowers or raises your score, it just creates a differnet score based on a different credit profile.  Once the disputes are resolved the score will update to reflect any changes.  If all disputes were verified the score should go back to the original score (unless any other factors have changed to cause a difference).  IF some items were removed then the score MAY go up some.  IF in the process, items are reported back with more neg comments than before it may go down.  (this is not uncommon as sometimes an item may only show up as 30 days late or something that was actually more late, etc...)  This is why you never dispute a negative item that is reproting better than it actuall was...  After all that process finishes, you end up with either removed items, items corrected to the proper status, or items that are verified and will be marked disputed.  Once they are verified, the comments mean nothing in the scoring equation.  They are just a sidenote.

[Anonymous]

oh so does opening a dispute lower your score? and why? i did open the disputes on the two CO (other accounts also, but those TL were deleted) one does remain from the 120 day late.

should i expect an increase or decrease when i remove the disputes?

The LO said that if the CO is older than two years i may not have to pay it before getting a loan but the disputes would need to be removed. If i do have to pay the CO before im going to see if i can do it at closing so it doesnt hurt my score.(ive read co arent suppost to hurt score by paying them but that it happens sometimes and im to close to the 620 score to risk it)

the LO said that she would run it through Automatic writer to see if i would need to pay it? would the uw make me pay before?

[Anonymous]

thanks mickie08 thanks for explaining. I had one student loan that came back as paid as agreed, but its still flagged as neg, then i had a wells fargo that is 30 days late and is not flagged as neg but it still has comment of disputed by consumer i think is how its worded.

ive read that sometimes its hard to get the dispute comment removed so im going to start after this last dispute is done in dec so the comments are hopefully gone by feb when i apply.

will disputes keep autowriter from going through?

sorry for so many questions, you guys are so patient and helpful

[Anonymous]

It is up to the UW if they will allow you to pay at closing..

Again, a dispute does not really affect your score unless the dispute process causes a change in your file (i.e an item is updated with a change in status or removed).  They will temporarily in some cases remove an item from the scoring formula while it is being resolved, but unless that item is changed, the long term affect of a dispute on your score is nothing. OF course if they remove it your score will likely increase (but not guaranteed).  IF they update it with more recent negative info, your score could drop, and if it is just validated as is your score will stay the same.  Once you have initiated the dispute there is no way to prevent this process.  Once the items are either updated or validated, then you score should be correct.  If there are then comments left that an item is in dispute, you can ask to have the dispute remarks removed.  This will NOT affect the score.