Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Dispute score dropped from 670 to 628 **SUCCESS**

spencerfamlyof5 wrote:

I to am going through the same problem. I am currently in the process of buying a home. Several months ago I had disputed some items on my report. Although the investigation was completed they added in the comment section of each account that it was disputed by the consumer. So I had called Equifax to have the comments removed and that was yesterday. Now today I noticed my score drop from 652 to 607. One of the accounts that the comment was on and needed to be removed was a car loan with a great pay history. I called Equifax and they told me that during the dispute process your accounts are like ghost accounts. Meaning that my score is being calculated as if the account never existed. So I was wondering if my score will go back up?


Sorry that happened.

 

The EQ CSR you talked to is partly wrong. Per FICO scoring, all collection agencies and public records (e.g. BKs, liens, judgments) are fully scored during a dispute. Original creditors (OCs) like a credit card, a loan, a charge-off of any type, etc., are partially scored during a dispute, but not fully. FICO will only ignore the balance, the credit limit (if a CC) and will also ignore the payment history of OC accounts during a dispute. Other aspects of the account like the contribution to your mix of credit, length of history, impact to your average age, etc., are fully scored during a dispute.

 

So for example, if you have a charged-off CC with a balance over the reported credit limit with multiples of lates, and you dispute it, you could very well see a significant FICO increase because FICO is ignoring the items of the account that are hurting the most. Once the comment goes away and is verified by the credit reporting agencies, then FICO will fully score everything and the score drop back to where it was before, if not worse due to the update.