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Established Contributor
Posts: 644
Registered: ‎11-30-2012
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MyFIco score drops after initiating dispute

I initiated a dispute yesterday on two accounts.  Two charge off accounts, one account should be removed from CR because it is older than 7 years from first delinquency the other account was to have been paid off by insurance when I lost my job.  Today I got a score watch alert that my score had changed, log in and the score went down by 9 points.  The reason was that balances were updated.  Which of course isn't possible as one is a zero balance and has always been a zero balance, the other balance is exactly the same at it was the day before. No changes on CreditKarma, CreditSesame, etc.

 

Any clues?  I am steadily getting stuff removed and updated.  But would like to make sure the effort is being rewarded.

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Re: MyFIco score drops after initiating dispute


coterotie wrote:

I initiated a dispute yesterday on two accounts.  Two charge off accounts, one account should be removed from CR because it is older than 7 years from first delinquency the other account was to have been paid off by insurance when I lost my job.  Today I got a score watch alert that my score had changed, log in and the score went down by 9 points.  The reason was that balances were updated.  Which of course isn't possible as one is a zero balance and has always been a zero balance, the other balance is exactly the same at it was the day before. No changes on CreditKarma, CreditSesame, etc.

 

Any clues?  I am steadily getting stuff removed and updated.  But would like to make sure the effort is being rewarded.


What kind of COs were they? CCs? Loans? If a CC, was there a balance reporting? While most CO'd CCs (assuming it is a CC) are reporting over the CL, some aren't. Some CO'd CCs are helping util if balances on the other CCs are too high. Even after a CO, a CO'd CC can still factor into CC util. Once a dispute is initiated, then FICO will ignore the balance and the CL and in some scenarios that can increase util, thereby decreasing score.

 

9 points is nothing in the scheme of things. More than likely the 9 points was caused by something else. SW will alert you to the dispute and throw out the latest score. It's easy to associate that any score change was due to the dispute when in fact it could be other things going on within the report (like balance increases on other CCs) that caused the FICO drop.

Established Contributor
Posts: 644
Registered: ‎11-30-2012
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Re: MyFIco score drops after initiating dispute

[ Edited ]

 


llecs wrote:

coterotie wrote:

I initiated a dispute yesterday on two accounts.  Two charge off accounts, one account should be removed from CR because it is older than 7 years from first delinquency the other account was to have been paid off by insurance when I lost my job.  Today I got a score watch alert that my score had changed, log in and the score went down by 9 points.  The reason was that balances were updated.  Which of course isn't possible as one is a zero balance and has always been a zero balance, the other balance is exactly the same at it was the day before. No changes on CreditKarma, CreditSesame, etc.

 

Any clues?  I am steadily getting stuff removed and updated.  But would like to make sure the effort is being rewarded.


What kind of COs were they? CCs? Loans? If a CC, was there a balance reporting? While most CO'd CCs (assuming it is a CC) are reporting over the CL, some aren't. Some CO'd CCs are helping util if balances on the other CCs are too high. Even after a CO, a CO'd CC can still factor into CC util. Once a dispute is initiated, then FICO will ignore the balance and the CL and in some scenarios that can increase util, thereby decreasing score.

 

9 points is nothing in the scheme of things. More than likely the 9 points was caused by something else. SW will alert you to the dispute and throw out the latest score. It's easy to associate that any score change was due to the dispute when in fact it could be other things going on within the report (like balance increases on other CCs) that caused the FICO drop.


Credit Cards, one was reporting a balance of Zero the other a balance of $7701.  My utilization on my "open" accounts is 8.67%. 

The 9 points kind of meant something because it moved me from Fair to Good on the meter.  I'm definitely getting a paid tax lien removed this week (paid 8.5 years ago, still on report, but date paid reported erroneously by state)  I was hoping the combination of the stuff I'm doing would give me a very clean report.  I have a paid off HELOC,  property has been sold, but the account has never been closed by the creditor, that I'm hoping nobody figures out.  Even though it doesn't appear to factor in utlization I have had several lenders and some collection agencies mention it.

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