Credit Score While In Dispute

[Anonymous]

I have a new collection account that has whacked my scores 60-80 pts.  I've disputed the trade line with all 3 CRA's.  During the investigation, are my scores restored?  Thank you so much for all the advice!

[Revelate]

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@Anonymous wrote:

I have a new collection account that has whacked my scores 60-80 pts.  I've disputed the trade line with all 3 CRA's.  During the investigation, are my scores restored?  Thank you so much for all the advice!

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No, the collection will remain there possibly with the description (In Dispute).  It is still calculated into the score to the best of anyone's knowledge that doesn't actively develop or support the infrastructure the FICO algorithm is applied on.  It might, possibly, be scored a little differently with that status but I doubt it: arguably you could pull the report from one of the CRA's (EQ / TU anyway, Experian blah) that you've disputed it with, see if has the description changed, and then pull your score again if you want a more precise answer.

In reality, unless you're applying for something in the near future, it doesn't matter anyway.

[Anonymous]

The collection will fall off in 6 months and I won't be applying for anything new.  The only thing I'm concerned about is my current credit cards.  I have Wells Fargo, BofA Cash Rewards, and AMEX Gold.  I just don't want to hurt those cards.  All of my other cards and intallment accounts are current and have been for years.  Any thoughts?

[MarineVietVet]

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@Anonymous wrote:

I have a new collection account that has whacked my scores 60-80 pts.  I've disputed the trade line with all 3 CRA's.  During the investigation, are my scores restored?  Thank you so much for all the advice!

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What was the basis of your dispute?

Unfortunately (or fortunately depending on how you look at it), portions of an OC account under dispute will not be scored by FICO. Among these are the balance, the CL, and the payment history. Other items like AAoA, scoring bucket, mix of credit, acct age, etc. including CAs and PRs, are not removed or impacted by a dispute.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

The acct was settled with the OC over 5 yrs ago. Isn't the CA required to send a dunning letter before reporting to CRA's? By the way, the OC trade line shows that acct was paid. Also, will this one and only CA scare my current CCC's and result in AA? Everything else on my reports are very clean!

[MarineVietVet]

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jjsten wrote:
The acct was settled with the OC over 5 yrs ago. Isn't the CA required to send a dunning letter before reporting to CRA's? No. Reporting it is considered "initial contact" just like a letter or phone call. But they are still required to send that dunning letter within 5 days of placing it on your reports.

By the way, the OC trade line shows that acct was paid. Also, will this one and only CA scare my current CCC's and result in AA? I don't think anyone can say for sure but hopefully you'll be fine.

Everything else on my reports are very clean!

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