Re: Disputes and FICO Score[ Edited ]
10-09-2012 10:58 AM - edited 10-09-2012 10:58 AM
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.