DOH!!! GW backfire to CitiMortgage!!

[smackmaster2]

I tried to GW a few 30 day lates with CitiMortgage. They mis-interpreted this as me disputing the lates and slapped a dispute on the account. Dropped my score from a 711 to 674 on EX!!! Not sure on the others yet.

I called and told them that I was not disputing, but they wont be able to fix until 18th! Ugh!

[sisco]

Why does a dispute on a CL cause a score drop?

[guydiver]

From what I understand, the disputed account is no longer calculated into your Fico score, thus age and utilization of that account are no longer figured into the mix any longer. So if that account has aged significantly and has a very low utilization or high CL, it can hurt your score when it doesn't count into the mix.

[llecs]

In OP's case, it likely didn't drop the EX FICO score, because it wasn't a FICO score that dropped, it was a FAKO. I bet his/her FICO did not change.

ETA...For FICO, an OC TL continues to factor in various ways into your FICO during a dispute. The length of history, credit mix, scoring bucket, and AAoA are not impacted. Aside from utilization which isn't a part of a mortgage TL, the payment history is impacted, but only in the sense that the 30s are ignored, which would have resulted in a score bump during the dispute if those 30s were recent and OP had a relatively clean report.

[smackmaster2]

True, it was a FAKO, but still did not like seeing it go from 711 to 674! :-) My heart dropped! lol We are planning on applying for a mortgage last week in August, so I am a little skittish.

Either way, it should be cleared up soon, but I wasnt expecting that big of a change in any score, FAKO or not...especially from a GW letter.

[smackmaster2]

Wow, that was fast. Just pulled my daily experian and dispute was removed and FAKO went back to 711. Whew!