Does having something in dispute “inflate” your credit scores?

[Cjethompson2017]

I had a lender do a soft pull on credit today, and he stated I have a few things in dispute (made a stupid mistake of using a credit repair company), and that these need to be removed in order to run anything through underwriting. His reasoning was that dispute inflate credit scores. Is this accurate? I had another lender tell me to wait to have them removed until she checks my credit.

[Mortgage-Specialist]

He is correct. The disputes can be inflating your current scores and it is possible for your scores to decrease once the disputes are removed. But they do need to be removed in most cases (but not all)

[Cjethompson2017]

Do they usually inflate by a lot? I'm upset I even went with a credit repair company. They've done nothing for me. If the account was once in dispute, but no longer in dispute (says account resolved), have the scores most likely gone to where they would be if the remarks were not there at all?

[Mortgage-Specialist]

It depend son how much they would fluctuate...

If an account was once in dispute but now says (dispute resolved) it is perfectly okay and you do not need to make and changes or adjustments to it

[Cjethompson2017]

Ok, thank you! Pretty sure ALL mine say once was in dispute and is now resolved. I have two accounts in dispute still open, BUT it's because the lender said they would delete (collection accounts). So those won't be there anyways. 

I'm not sure he completely looked at my report since it was just a soft pull. But, I'll ask for specifics because I tried looking myself and can't see any besides the two that are still open disputes.

[JL276]

For me it did. 

One creditor accidentally flagged my account as a charge off. My score went down about 60 points. I disputed it per the recommendation of the csr, and my score went back up 35 points or so while in dispute. The dispute came back as verified and no longer in dispute (something along those lines). 

I had the dispute comment removed completely and my score went back down to the previous 60 point drop. Once it was fixed my score went back up 60 points over about 6 week period.

Basically for me as long as the dispute comment was there on the charge off, whether it said previously in dispute or in dispute, my score was effected. It suffered less when it said previously in dispute (about half). When the dispute comment was completely removed it suffered the most. Only when corrected to show it was not charged off did my score go back up all the way. Hope this makes sense.

Charge off -60 points

charge off in dispute -35 points

charge off previously in dispute -28 points

No longer a charge off +60 points 

[Cjethompson2017]

@JL276  What do you mean by once it was fixed it went back up 60 points over a 6 week period?

[JL276]

@Cjethompson2017 For me the account was accidentally flagged as a charge off. The creditor fixed it (made it show current, no late payments or anything negative) then it took a little while maybe 6 weeks for my score to rebound completely.

[Cjethompson2017]

@JL276 I completely misread your post. Haha. Sorry! Thank you for the info!

[JL276]

@Cjethompson2017no problem. You're welcome