Why does my score drop when I dispute?

[LoveGoodCredit]

Can someone answer this for me?  I am wondering why my score drops when I dispute an item.  I lost three points per item.

I guess I am also wondering if the items do get removed, does that mean that my score will be lower?  Any thoughts?

thanks,

[guiness56]

Disputing a CA or PR should never drop your score.

When you dispute an OC account, certain aspects of that account are removed from scoing like balance, CL and payment history.  When the dispute is resolved and nothing changes your score should go back to pre dispute.  If any thing is updated/added or deleted, it could go up or down.

[LoveGoodCredit]

I want to call equifax to find out how it is possible for them to drop me 6 points as soon as the two items went into dispute.  I wonder if they were actually helping my credit report ... :-/.  They were older accounts.  Both 6 years..

[llecs]

OP, how were you alerted to the score change? ScoreWatch? Guessing because you specifically said "FICO" in your siggy.

Did you get two different alerts for -3? You mentioned "per item".

EXACTLY, what was disputed? A CA? A PR? A CO? If a CO, what kind was it? Was it showing a balance? Did it update recently prior to the dispute?

Are you certain that nothing else changed on your credit? If the score source was SW, know that the alerts are a NET score change and there could have been other changes like changed util, changes in balances, etc.

[llecs]

On calling Equifax....they wouldn't know why your FICO increased or decreased because they don't know anything about FICO scoring. Now if you are pulling and comparing their FAKO, then maybe they can tell you. Usually EQ's CSRs are misinformed and uneducated in the realm of credit and scoring. They have even told posters on here in the past that myFICO doesn't offer FICO scores.

[LoveGoodCredit]

Oh goodness.   *sigh* this may be a forever mystery then.  I am trying really hard to get my equifax above 640 and it isnt moving.

[LoveGoodCredit]

I had two old accounts, I actually sent a GW letter to GM and they put on my transunion that I paid off the balance of the account after it was reported.  They only did it for transunion so I disputed on Equifax just to see what would happen.  As soon as I disputed it and one other account I got the dreadful red arrow alert.  It dropped 6 points and it listed both disputes so I know for sure that is what dropped me.  I have a high credit card balance right now.  Almost 80% and will be paying those off soon for the bump.  but I have OLD stagnet stuff on my credit report that is just dragging down my score.  I cant seem to get it above these numbers.

		5/24/2013	635	Score Watch® alert: Your score dropped below your target of 641.	Yes	More info
		5/23/2013	641	Score Watch® alert: Your score is unchanged.	Yes	More info
		5/22/2013	641	Score Watch® alert: Your score reached your target of 641.	Yes	More info
		5/17/2013	641	Score Power report: Your score has dropped.		More info
		1/12/2013	648	Score Watch® alert: Your score dropped below your target of 655.	Yes	More info
		1/10/2013	655	Score Watch® alert: Your score exceeded your target of 632.		More info
		12/22/2012	632	Score Watch® alert: Your score exceeded your target of 604.		More info

[llecs]

No mysteries here.... 

Based on what you posted, here are some scenarios (of which one or more could have applied here):

1) You are comparing FAKO scores. FAKO is as FAKO does. Ignore them.

2) You are comparing a FAKO with a FICO for the score comparison. Again, ignore.

3) You are looking at your FICO and you bought a new report each time from myFICO and are correctly comparing scores (and/or received a SW alert).

4) If comparing a FICO both times...the disputed items are CAs and/or PRs. If that's the case, then something else like a balance increase caused your FICO to drop.

 You'll have to pull EQ to see what changed. If verified with no changes, then your score will remain the same. If deleted, your score could go up or down depending on how it reported, how recently it updated, and the age of the TL.

5) If comparing a FICO both times...the disputed items are COs and the COs are loans. If that's the case, then something else like a balance increase caused your FICO to drop. You'll have to pull EQ to see what changed. If verified with no changes, then your score will remain the same. If deleted, your score could go up or down depending on how it reported, how recently it updated, and the age of the TL.

6) If comparing a FICO both times...the disputed items are COs and the COs are CCs. If that's the case, then FICO will ignore the balance and CL during a dispute and if the balance and CL helped your overall util, then you would experience a potential loss. If verified with no changes, then your score will return to where it was before. If deleted, your score could go up or down depending on how it reported, how recently it updated, and the age of the TL.

ETA...I didn't see your other post. Strike #1 and #2.

[LoveGoodCredit]

yup, I am only using myfico to compare them. to get the true results of disputes.   So the day after they went into dispute I got the scorewatch alert it dropped.

I just cant get over this mile marker either.

 

[llecs]

6 points may seem like a lot when you are clamoring for just a few here and there (I was in repair mode too prepping for a mortgage), but in the scheme of things 6 isn't a lot. If it isn't a CO CC, then the source would be from changing CC balances elsewhere (very likely) and that's assuming that you had no other changes like added inquiries, added TLs, etc. I would wait for the disputes to end before thinking twice about your FICO. Anything can change out of that dispute which could move your score either way.