Understanding FICO® Scoring

[aot2009]

I had disputed a paid charge off which should be removed off my report from 2006 but today myfico dropped to 628 score from a 670.

My util is 4% on cards and I AAOA is 5 years+

Does this mean that if it's removed my score would lower?

[aot2009]

Called Equifax and they said they always drop the score when disputes occur. I'll update when dispute is over to let you know what the score change is and what the dispute was.

Good news is that nothing else has changed on my report and the dispute end date falls during a time before the credit cards update so I'll be able to see exactly how the score affects me.

[llecs]

Is this CO a CC?

[aot2009]

Charge off from original creditor

[Lel]

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aot2009 wrote:

Called Equifax and they said they always drop the score when disputes occur. I'll update when dispute is over to let you know what the score change is and what the dispute was.

Good news is that nothing else has changed on my report and the dispute end date falls during a time before the credit cards update so I'll be able to see exactly how the score affects me.

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I don't know that this means.  Disputes don't always cause a score to go down, and Equifax can't just "drop the score" arbitrarily.

Was this the only derogatory comment on your credit reports?

[llecs]

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aot2009 wrote:

Charge off from original creditor

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Is this a CC?

[aot2009]

It's not a CC it's a utility type bill

[aot2009]

I don't know that this means.  Disputes don't always cause a score to go down, and Equifax can't just "drop the score" arbitrarily.

Was this the only derogatory comment on your credit reports?

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Lel wrote:

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aot2009 wrote:

Called Equifax and they said they always drop the score when disputes occur. I'll update when dispute is over to let you know what the score change is and what the dispute was.

Good news is that nothing else has changed on my report and the dispute end date falls during a time before the credit cards update so I'll be able to see exactly how the score affects me.

---

I don't know that this means.  Disputes don't always cause a score to go down, and Equifax can't just "drop the score" arbitrarily.

Was this the only derogatory comment on your credit reports?

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No there were others on my report still but this one is from 2006 and that's just what the lady said that the score goes down when it's in dispute and can bounce back after the dispute depending on the outcome.

I know and understand that when things are in dispute that they are not used in the scoring system but I find it hard to imagine this account so small would reflect that much change to drop that far.

If this is an AAoA type drop that's one heck of a drop in points.

[llecs]

Per FICO scoring, a dispute will not impact AAoA, your scoring bucket, length of history, etc. A dispute will impact how FICO sees an OC's baddie status as well as the CL and balance, if reported. I don't see how a dispute to Verizon would impact your score in a negative way.

Was anything else disputed? 

Is it certain that the dispute comment was reporting at the time of the SW (assuming?) alert?

[aot2009]

Here's the details from FICO Scorewatch. Nothing else was disputed or changed on my report.

VERIZON NEW YORK INC

Account opened: 8/2005 Description: Consumer disputes - reinvestigation in process   Previously reported Newly reported Balance: $190   Past due: $190 $190 Status: Bad Debt; Placed for collection; Bad Debt; Placed for collection; Last activity: 10/1/2006 10/1/2006 Description: Consumer disputes this account information Account closed at consumer s request Charge off account Utility Consumer disputes - reinvestigation in process Contact: VERIZON

How account changes impact your score:

The following are reasons why a change to an account can cause your FICO® score to go up. (A change to an account in the opposite direction can cause your score to go down.)

• The status of the account improved. For example, the status went from "60 days past due" to "currently paid as agreed". An improvement in account status demonstrates an ability to pay debts.
• The balance on the account decreased. Generally, less debt is better for your FICO® score.
• The amount past due on the account decreased. This demonstrates your ability to meet your financial obligations.
• The credit limit on the account was raised while the balance stayed the same. Since carrying a balance too close to the credit limit is a sign of a consumer who needs credit and cannot pay it back, a higher credit limit actually helps your FICO® score.
• The history of late payments or description for this account is revised to be less derogatory. For example, if a late payment on your account was mistakenly reported, correcting this on your credit report may help your score.