What do I do about the disputes on my credit report?

[Anonymous]

My family and I are building a production home. We are starting the mortgage process in late April and our home will be completed in June. I am aiming to get a conventional loan. My mortgage broker told me to work on building my credit in the meantime. I came across an advertisement for Lexington Law and signed up. I have no debt (besides my student loans), but I have late payments on my credit cards and a few old collections and charge offs that I have either paid off or settled. Lexington Law has challenged these accounts and late payments. They were unsuccessful in challenging them and the comments for these negative accounts now read  “Account previously in dispute-now resolved. reported by credit grant.” and "Completed investigation of FCRA dispute - consumer disagrees." and "Account previously in dispute – now resolved – reported by subscriber."

I was talking to my mortgage broker yesterday and he became concerned because Lexington Law was disputing negative accounts on my credit report. I did some research and found that disputes can be problematic for the mortgage process, which led to me panicking. I logged into my Lexington Law account to find they submitted new dispute challenges to Equifax and Experian 2 days ago. 

I have two questions. First, are all dispute comments problematic during the mortgage process or just the ones that are open disputes? And second, will my credit score drop if I ask for the dispute comments to be removed?

[Remedios]

Hi and welcome 

Lexington Law is problematic (and cannot be discussed here since credit repair scams are prohibited by myFico Terms of Service).

They disputed valid negatives for you, and once they come back verified, you can expect your score to drop. 

To be completely honest, both you and your broker should be mortified.

The reason its problematic is because once those negatives come back as verified, it makes delinquency appear more recent causing loss of points. 

Proper approach would have been attempt at GW removal, well ahead of starting the mortgage process. 

I sincerely hope they don't mess it up for you completely. 

[dragontears]

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@Anonymous wrote:

My family and I are building a production home. We are starting the mortgage process in late April and our home will be completed in June. I am aiming to get a conventional loan. My mortgage broker told me to work on building my credit in the meantime. I came across an advertisement for Lexington Law and signed up. I have no debt (besides my student loans), but I have late payments on my credit cards and a few old collections and charge offs that I have either paid off or settled. Lexington Law has challenged these accounts and late payments. They were unsuccessful in challenging them and the comments for these negative accounts now read  “Account previously in dispute-now resolved. reported by credit grant.” and "Completed investigation of FCRA dispute - consumer disagrees." and "Account previously in dispute – now resolved – reported by subscriber."

I was talking to my mortgage broker yesterday and he became concerned because Lexington Law was disputing negative accounts on my credit report. I did some research and found that disputes can be problematic for the mortgage process, which led to me panicking. I logged into my Lexington Law account to find they submitted new dispute challenges to Equifax and Experian 2 days ago. 

I have two questions. First, are all dispute comments problematic during the mortgage process or just the ones that are open disputes? And second, will my credit score drop if I ask for the dispute comments to be removed?

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This thread might help. 

https://ficoforums.myfico.com/t5/Mortgage-Loans/Removing-disputes/m-p/6125387#M243957

If the disputes are closed, removal of the comments shouldn't effect your score. If the disputes are open, removal of the dispute could effect your score.