Credit dispute dropped my score 50pts!

[Anonymous]

Hoping someone can explain how this happened and a path forward to gain back my points. 

We had a closed account in 2015 with some late payments. My wife had some questions on how she could get these late payments removed and filed a dispute not knowing they would re-report the same information. In doing so it yanked my credit 50pts and hers much more. 

i feel like I've used the last 5 years to successfully rebuild my credit and it shouldn't be fair to re-penalize me again for the late payments. Especially on an account that was paid off. 

does anyone have any advise on what I should do next? 

[RSX]

This is a known issue and there are lots of posts advising people to NOT dispute unless the data is not accurate 

Disputing correct data means the vendor re validates the info and it can cause a score loss

that being said, I am sorry this happened to you

the points will come back.  

they do make it too easy to click on that dispute button.....

[Anonymous]

How long should it take to rebound?

[Brian_Earl_Spilner]

It's basically like getting a fresh derogatory so it'll take some time. A score loss like that leads me to believe they haven't been updating it every month. If they start now that it's been disputed, it'll keep your score suppressed until they stop or it's removed 

[RSX]

I really don't know.  I would hope for some to come back in the next 2 months.  

at least they are 5 years old and on the way to fully being off in 2 years.  

[Anonymous]

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@RSX wrote:

I really don't know.  I would hope for some to come back in the next 2 months.  

at least they are 5 years old and on the way to fully being off in 2 years.  

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Problem is I need the scores when I finalize my loan in October. 

My credit report last month had this same account but was at the bottom of the history. Checked again bc my discover fico number took a dip on the latest statement. When I pulled credit, this 5 year old account was not the most recent. I read that by law a dispute cannot damage your credit, but clearly this did because the only difference I had from last months report to this month was opening a secure credit card with discover. And that was only a soft pull and $200 limit which I'm at less than 10% utilization 

[RSX]

A new revolver account will drop your score as well.  

[Anonymous]

The dispute did not damage your credit. I had the same thing happen 6 months ago and thankfully it only damaged my equifax, but sadly it still hasn't caught back up to my experian / trans union. 

When you disputed the account it caused the creditor to look at the account, and update it. That update codes as recent negative activity to the account. For whatever reason. Example being, my equifax shows a "recent late payment" code now that my others don't show on myFico, calling equifax they said they couldn't find any lates on my report. Then I came here and found out what it was. 

It wasn't the dispute that directly damaged your credit. It was the update to the account that the creditor did (at your request technically because you filed the dispute) that damaged your credit. 

[Anonymous]

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@RSX wrote:

A new revolver account will drop your score as well.  

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Interesting enough when I actually checked the 3 main credit bureaus my scores only dropped 30 pts vs the "fico" score on my discover statement. 

is fico different from the 3 major credit bureaus? And does 30 pts sound normal for opening a new credit account? 

[Jnbmom]

I have never seen that much of a drop for a new account ?

The dispute that you intiated was probably the culprit as they updated your account. As others have mentioned disputing accurate info can sometimes make it worse .