Rebuilding Your Credit

[disneyluva]

According to Scorewatch my FICO dropped from 647 to 624, I don't see how that's possible. It lists possible missed or late payments but I haven't missed any payments or been late. They say the accounts below displayed changes. Now, I did dispute these accounts through the CR. I'm new to this and didn't educate myself throughly before taking that route. I disputed them because the balances on these accounts are incorrect. However, they all came back verified. Why would that cause my score to drop if they were already on my credit report.....they didn't change anything, just confirmed that the figures were "correct". As for the Credit Management account, the Scorewatch shows that they verified, which they did; however, I contacted them directly and the listing will be deleted from all CRA's. What am I missing? I assume once the deleted CM account updates the score will rise slightly, however, I expected that to be on top of the 647 not 624. Please help me understand this.

Your FICO® score decreased to 624 on May 25, 2012.

Interest rate alert:

Your new score of 624 may qualify you for an interest rate of 5.048%. Rate as of May 25, 2012 for a 30 year mortgage. See interest rates for all FICO® scores.

This score decrease may be caused by this new reason:

• You’ve recently missed a payment or the date of your most recent missed payment is unknown.

3 of your accounts reported changes

CREDIT MANAGEMENT (XXXX7822) Show/Hide Details
Account opened: 8/2011 Description: Collection account Previously reported Newly reported Balance: $169   Past due: $169 $169 Status: At least 120 days or more than four payments past due At least 120 days or more than four payments past due Last activity: 8/1/2009 8/1/2009 Description: Consumer disputes - reinvestigation in process Consumer disputes this account information Collection account Collection account Contact: CREDIT MANAGEMENT, 4200 International Pkwy, Carrollton, TX, 750071912   •   (800) 377-7723
SOUTHERN FIN (XXXXXX8467) Show/Hide Details
Account opened: 11/2005 Description: Charge off account Amount in high credit is original charge-off amount Previously reported Newly reported Balance: $919   Past due: $467 $467 Status: Bad Debt; Placed for collection; Bad Debt; Placed for collection; Last activity: 3/1/2006 3/1/2006 Description: Consumer disputes - reinvestigation in process Amount in high credit is original charge-off amount Charge off account Amount in high credit is original charge-off amount
SECURITY FINANCIAL SERVICE (X6413) Show/Hide Details
Account opened: 3/2006 Description: Charge off account Amount in high credit is original charge-off amount Previously reported Newly reported Balance: $525   Past due: $404 $404 Status: Bad Debt; Placed for collection; Bad Debt; Placed for collection; Last activity: 5/1/2006 5/1/2006 Description: Consumer disputes - reinvestigation in process Amount in high credit is original charge-off amount Charge off account Amount in high credit is original charge-off amount

[annielorie]

Fico does not include a derogatory account in the score if in dispute so more than likely it went back into your scoring as a baddie. When the account is deleted you should see a healthy jump but as always your mileage may vary

[sjs123]

This also just happened to me in April on an account from 2008 that was in collections and paid in full, but dropped my score in 2012? How do I get this off of my report?

[disneyluva]

I thought about that. I guess that's what's happened. Thanks for the response.

[MarineVietVet]

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annielorie wrote:

Fico does not include a derogatory account in the score if in dispute so more than likely it went back into your scoring as a baddie. When the account is deleted you should see a healthy jump but as always your mileage may vary

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It depends on what is being disputed. 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, credit mix, account age, etc. including CAs and PRs are not removed or impacted by a dispute.