Re: Questions about how FICO scores disputes
01-08-2013 08:01 AM
Does anyone know how FICO reacts to the following,
1. Experian and Equifax show recent lates on mortgage, but Trans Union does not.
Does this inconsistency weigh on my Equifax FICO, or is the only thing they look at is equifax?
2. I dispute the mortgage lates on equifax and experian - TU still current. So now Ex and Eq show "item in dispute".
Any change to FICO score from filing the dispute?
3. Lets say both disputes get resolved to remove the lates on EQ and EX. I assume removing lates will increase my credit score, but by how much, since TU never showed these as lates?
I will find out in a month but wondering if anybody here has been throught this
1) I'm unclear on your first question. If you have a late reporting on your mortgage and is showing on EX and EQ, then FICO will score that late on EX and EQ, but not TU since it isn't reporting there.
2) FICO will ignore certain aspects of OC accounts only during a dispute. It will ignore your balance, CL (not applicable here), and your payment history. Therefore the late is ignored by FICO. Any score gain would depend on the severity of the late, the recentness of that late, and both in relation to your overall credit. For example, if it is a 30-day late from 2007, then there would be no score change on the late alone because it isn't hurting. Or if the late occurred 6 months ago, but have recent COs or CAs reporting then you wouldn't see any gains because it's minor in relation to the baddies. Conversely, if your report is pristine and the late happened last month, then you stand to see a gain once the comment appears.
If the dispute is verified, then the points gained, if any, will go away. If the late goes away, then the score stays the same as it was once the dispute was initiated, with everything else being equal.
3) I think I know where you are driving at in #1....each CRA has it's own FICO. You actually have dozens of different FICO scores, but that's a different topic. Your TU FICO wouldn't change, all else being equal, because there was no change to begin with. Now there's a risk of the late being added to TU if accurate and your FICO could change due to that. But once the lates are removed off EQ and EX then the score will remain unchanged because any score change would have occurred at the time of the dispute.