I am hoping someone can help me understand this better. I had a disputed item on my credit, we are trying to get a mortgage and the loan officer said we would have to get the dispute removed from my credit before they could do anything. So I sent a non dispute letter, it was removed and my credit dropped by 51 points....why in the world did it drop so much??? Will it go back up anytime soon?
Sorry I am new to this and not sure about all of abbreviations that are used. It is an old credit card from many years ago that was turned over to a collection agency.
Unfortunately the collection did not get removed, just to "dispute" It said "Account information disputed by consumer". The dispute itself was removed, the collection was not removed.
When you initially disputed it did your score increase?
The only reason I can see for this to happen is if you got an increase when the dispute happened and they took it back after removing the dispute.
But, since it was a CA account, it never should have been removed from scoring in the first place.
Have you got a new copy of your credit report since this happended. It might be a good idea to. See if something else happened.
OP, some folks use "collection" loosely, but per FICO scoring it makes a big difference. For clarity, was this a collection agency reporting on behalf of a debt, OR was this a charge-off like a CC, phone bill, loan, etc.?
Were both scores (the before and after that resulted in the 51 pts) from the lender? Or was the 2nd score from another source?
they are a CA.
When an account is disputed it remains nuetral in the scroing process. Once the dispute is removed on the disputed acocunt the account is fully factoted in the the score.