topic Re: Holy Crap!! Score dropped 38 points! in Understanding FICO® Scoring

Holy Crap!! Score dropped 38 points!

tcham54687 — Wed, 07 May 2008 22:08:08 GMT

I initiated disputes on 4 accounts which I was an AU on and one account which belongs to my son but appears on my EQ report. My score dropped from 663 to 625 overnight, literally. Is this normal while the investigation is in progress? I'm fighting the urge to call and rage on someone. Should I sit tight and see what happens or get rowdy? I submitted the disputes on May 1, so I have a long wait if that is the advice.

Re: Holy Crap!! Score dropped 38 points!

Anonymous — Wed, 07 May 2008 22:19:45 GMT

Was it your FAKO score or FICO score that dropped? Disputing can also result in deletion of accounts. What and why were you disputing?

Message Edited by ilovepizza on 05-07-2008 06:19 PM

Re: Holy Crap!! Score dropped 38 points!

Lel — Wed, 07 May 2008 22:36:22 GMT

@tcham54687 wrote:
I initiated disputes on 4 accounts which I was an AU on and one account which belongs to my son but appears on my EQ report. My score dropped from 663 to 625 overnight, literally. Is this normal while the investigation is in progress? I'm fighting the urge to call and rage on someone. Should I sit tight and see what happens or get rowdy? I submitted the disputes on May 1, so I have a long wait if that is the advice.

I've read elsewhere on these forums that when you dispute an account with a CRA, these accounts are temporarily taken out of the FICO scoring formula while the dispute is investigated. So, if one of these disputed accounts was a high CL credit card, for example, and it is no longer contributing to your overall revolving credit available, then you might now be seen as having a higher utilization ratio that would drop your score.

Also, if one of the disputed accounts was a different type of credit account - e.g. a mortgage, student loan, or auto loan - then the disappearance of this account would lead to a less diverse "mix of credit", which would also negatively impact your score.

Lastly, the disappearance of older accounts would lead to a lower average account age, which would also cause a score drop.

I hope my understanding of this phenomenon is correct. There are others here with a lot more experience in the world of FICO.

Re: Holy Crap!! Score dropped 38 points!

tcham54687 — Wed, 07 May 2008 22:41:18 GMT

It was a FICO not FAKO. I received the alert from SW. I was so p*&^%ed that I pulled a full report and of course, the disputed items are still under investigation with no change in the information reported, except it appears the report date was changed for all of the accounts to May 2008.

I am disputing 4 accounts which I am an authorized user on and one account where my son's delinquent info was merged with mine, we have the same name and address. My son's account was 120 days late in 2005 and the other 4 accounts had a 30 day late on them, only one since 2003 and it occurred in Nov 2006. These were all small accounts. The largest had a limit of $900, the others were less than $100.

Message Edited by tcham54687 on 05-07-2008 03:41 PM

Re: Holy Crap!! Score dropped 38 points!

Anonymous — Wed, 07 May 2008 22:57:56 GMT

when you dispute items it shouldn't impact your score. I am disputing one currently and my score hasn't moved a single point.

Re: Holy Crap!! Score dropped 38 points!

Junejer — Wed, 07 May 2008 23:11:44 GMT

Lel, your understanding is right on. You described it well and gave great advice.

Re: Holy Crap!! Score dropped 38 points!

tcham54687 — Thu, 08 May 2008 00:30:03 GMT

Thanks for the advice and info. I'll give it 30 days and see what happens.

Re: Holy Crap!! Score dropped 38 points!

haulingthescoreup — Thu, 08 May 2008 11:44:30 GMT

@Anonymous wrote:

when you dispute items it shouldn't impact your score. I am disputing one currently and my score hasn't moved a single point.

Is yours a collection or judgment? On these, they do keep getting used in scoring during dispute. But the others are removed temporarily. It could be that what you're disputing isn't that bad; it could also be that as both the derog AND the age of the card are not being considered, they cancel one another out.

Re: Holy Crap!! Score dropped 38 points!

Anonymous — Thu, 08 May 2008 16:25:11 GMT

OMG I came here to post because I just dropped 38 points too and am freaking out!

I was just on the phone with Penfed requesting a CLI (I'm still within 60 days of the initial pull, just refinanced my car with them and figured I may as well go for it all!) and I get a scorewatch notice. I log in to check and there are no notices. I checked on TC also and nothing.

The only thing I can think of is that I sent a dispute re Sallie Mae (9x 90-150 day lates from 04/05) but it hasn't been 30 days yet. SM verified them to EX.

I'm freaking out right now.