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Posts: 4
Registered: ‎09-11-2012
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Disputes and FICO Score

Hello,

 

My FICO Score dropped from 620 to 603 after I disputed two items on my credit report. Has anyone experienced anything similar? Did your score increase following the resolution of the dispute?

 

~Thanks!

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Posts: 32,869
Registered: ‎08-04-2007
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Re: Disputes and FICO Score


myhouse2012 wrote:

Hello,

 

My FICO Score dropped from 620 to 603 after I disputed two items on my credit report. Has anyone experienced anything similar? Did your score increase following the resolution of the dispute?

 

~Thanks!


Make sure you are comparing the same EXACT scores and same exact FICO versions. Where did you get your before and where did you get your after score (620 to 603)?

Aside from the above, it is possible to lose points when disputing. What kind of items were they?

New Member
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Registered: ‎09-11-2012
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Re: Disputes and FICO Score

Both scores came from myfico.com. One item is a debt owed to an energy company. It is  labeled as "charged off",and since I paid in full, I want to see it reflected as such. The second item is a collections item which I settled with the collection agency, but it has not been updated...

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Re: Disputes and FICO Score

[ Edited ]

myhouse2012 wrote:

Both scores came from myfico.com. One item is a debt owed to an energy company. It is  labeled as "charged off",and since I paid in full, I want to see it reflected as such. The second item is a collections item which I settled with the collection agency, but it has not been updated...


I don't believe the dispute caused the score change. When an OC account (like the utility, a CC, a loan, etc.) is under dispute, FICO will ignore the balance, limit, and payment history. When that happens, there's a chance to see a score drop if the util helped your score. In your case, there was a potential for a score increase since FICO was ignoring the utility's payment history. CAs, like your latter, are not impacted by a dispute per FICO scoring (same with public records), so there's no impact there.

 

I'd look elsewhere within your reports for changes like changes in balances, updates to other accounts, etc. Also, once a dispute concludes on an OC account, then there's a chance for a score drop because the baddie aspects are fully scored again. Also know that disputing some accounts will result in a drop once the dispute clears because the OC or CA will update it in a way to make it appear worse than before (e.g. added lates, updated status dates, etc.). If these are still listed as being disputed, then it doesn't apply.

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Registered: ‎09-11-2012
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Re: Disputes and FICO Score

According to ScoreWatch, the disputes are the only changes in my account. Do you think I could see an increase if the energy bill is reflected as PIF?

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Posts: 32,869
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Re: Disputes and FICO Score


myhouse2012 wrote:

According to ScoreWatch, the disputes are the only changes in my account. Do you think I could see an increase if the energy bill is reflected as PIF?


SW will only give a general idea of the possible reasons behind your score change. All it does is pull your latest EQ FICO as of the moment the alert is generated and throws a possible idea behind it. For example, I once got a SW alert for +20 because I added an inquiry. The inquiry didn't give me 20 points but other changes occurred that SW wasn't designed to pick up on caused the score increase (in my case a dropped baddie). Pull an EQ report from somewhere to look for any changes.

Paying a CO like yours won't increase the FICO score.

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