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how does dispute affect credit decision?

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Anonymous
Not applicable

how does dispute affect credit decision?

just read this on my transunion dispute confirmation email they sent me. and was wondering why or how this could effect a decision.
 
When you have a dispute pending, we recommend that you not apply for credit, as
the results of the investigation may affect a new credit decision
.
Message 1 of 6
5 REPLIES 5
Tuscani
Moderator Emeritus

Re: how does dispute affect credit decision?

I say BS.
Message 2 of 6
Anonymous
Not applicable

Re: how does dispute affect credit decision?

Bizarre.
 
But if the dispute is resolved in your favor, it could result in an increase in your score.  So you might as well wait and see what happens before you apply.
Message 3 of 6
Anonymous
Not applicable

Re: how does dispute affect credit decision?

Yes, I agree.  I had an ID theft dispute go on for about 6 weeks but I just put a lock on my CR's with the three bureaus.  All that happened was that I couldn't do a point of sale credit app.  Which is probably a good thing anywaySmiley Happy
 
If I did apply it meant I/they would have to go through a 2nd level of screening - again, probably a good idea.
Message 4 of 6
Anonymous
Not applicable

Re: how does dispute affect credit decision?

It's just to advise you that your dispute won't be resolved for up to 30 days so if you apply for new credit before the 30 days is up, the item in question will definitely still be on the cbr, so beware!
Message 5 of 6
Anonymous
Not applicable

Re: how does dispute affect credit decision?

The truth is that if you apply for credit while an acct is being investigated (good or bad acct) it is not considered in the FICO evaluation.  This is a "loop-hole" in the system that they do not what you to be aware of so they encourage you not to apply.
 
It is a good chance that you can get approved for "instant-credit" opportunities while negative accounts are being disputed. I have put it to practice and it works.. You can use simulators to determined what your FICO would be if you paid off your negative debt. In fact, when you dispute the items that is used in the simulator to increase your score "if brought to zero" your FICO will reflect that score and much more becuse the system trats the accounts as if they were not there when applying for new credit.. Try it!!
 
I can only assume that this must cost a pretty penny to correct in the program with the CRA and it is much more cost-effective and clever to send out the blurb you received. I like your curiosity!!
 
The blurb is a cover up for RISK MGMT!!
 
 
 
Message 6 of 6
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