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Disputed Accounts, to remove or not to remove

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Risingup1
New Member

Disputed Accounts, to remove or not to remove

Hey All,

 

I'm trying to decide what to do, and any advice would be appreciated. I have successfully removed most of the baddies and collections from my report over the past few years (mostly all deleted) except for 3 original creditors that I wrongly disputed in 2009. They will fall off naturally in 2015, but I am looking at a home to purchase next year. I have good tradelines over the past 5 years with auto, and past year with open credit cards. No lates, collections or other negatives. 

 

My questoin would be should I remove the negatives, take the FICO hit, and then wait and rebuild or go the HSA route (all OC's show a balance of zero). If so how big of a hit from 670 are we talking, 50points per? And then how fast would it rebuild? 

 

My concern is that if I take the disputes off my credit will plunge to the mid 500's and it will take years to get it back up, removing the option of an HSA loan. 

 

Bonus credit for the Fico Ninjas out there: Do you know if having a disputed account effects your ability to get unsecured cards or decent auto loan rates?

 

Thanks!

Message 1 of 7
6 REPLIES 6
Peter1142
Established Contributor

Re: Disputed Accounts, to remove or not to remove

Disputing an account does not permanently remove it from your FICO. Once the CRA's make a decision on the dispute (in 30 days I believe), and they uphold the account, they go back into FICO scoring. Your FICO of 670 includes the collections. Which doesn't sound high at all, considering you have 5 years of positive history.

 

Unless there is something I don't know..

Message 2 of 7
StartingOver10
Moderator Emerita

Re: Disputed Accounts, to remove or not to remove

Well, you can't get a mortgage approval with the disputes or even notations of disputes on the accounts. So you might as well get them removed and see where you are scorewise now then you have plenty of time to handle the derogs before you go for approval. It's better for you to know now than to wait until the actual mortgage application.

 

You might not be in as bad a shape as you think at all since you have good tradelines for the past five years.

 

If you don't have the disputes and just the negatives, then see if you can GW the negatives off. If not, let them fall off naturally. What are the derogs? Anything serious or large?

Message 3 of 7
DallasLoanGuy
Super Contributor

Re: Disputed Accounts, to remove or not to remove

you CAN get a mortgage with them on there..... it has to be a manual underwrite..... which a lot of files will fail.

some lenders wont do them though.

 

and... the u/w can deny the loan if they feel that the disputes are a blatant score manipulation.

 

 

Retired Lender
Message 4 of 7
StartingOver10
Moderator Emerita

Re: Disputed Accounts, to remove or not to remove

Oops, mea culpa. Thank you Dallas. Smiley Sad

Message 5 of 7
newmomnewme
Valued Contributor

Re: Disputed Accounts, to remove or not to remove


@ Risingup1 I am about to start applying for mortgages at the end of January or early spring 2014. My broker told me to get all of the dispute comments removed now.
Yesterday I had all of my dispute comments removed from EQ and My score before was 691 and my score after was 673....I received a score alert.
Nothing else changed and I had about 5-6 accounts with dispute comments.   2 Charge offs, 4 Collection Agency (2 per agency) and 1 installment loan (lates)...  
I think I will be able to get the points back by lowering util to under 5% and only carrying a balance on one cc.  I hope this helps!!!  I am going to call EX and TU later!!!  TU deleted mine right while I was on the phone with the rep. Took less than 5 minutes.

 

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Message 6 of 7
JMMD
Frequent Contributor

Re: Disputed Accounts, to remove or not to remove


@DallasLoanGuy wrote:

you CAN get a mortgage with them on there..... it has to be a manual underwrite..... which a lot of files will fail.

some lenders wont do them though.

 

and... the u/w can deny the loan if they feel that the disputes are a blatant score manipulation.

 

 


Do you mean get appproved with accounts still there or with the dispute remarks showing on the CR? I heard the remarks have to be removed before applying for a mortgage? I found this bit of info today while searching:

 

*If the dispute is over a medical bill and you are applying for an FHA, VA or USDA insured loan, the underwriter can overwrite the dispute up to $1,000."

 

My one dispute was for a medical collection of $92 from 2009, that was paid in full in 2010.. Hopefully this won't be an issue then! I am still going to try and get the remark removed butI have hope now that we can get approved either way.

 

 

Message 7 of 7
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