Not understanding the full implications of how a dispute can hurt your score.

[Anonymous]

So many questions. This one is a result of a response I got earlier today telling me that disputing accurate information would hurt my score. I tried searching to learn more but every thread I've read has had minorly conflicting info.

I recently disputed an auto loan that was coded as "unpaid balance" and in my dispute I said that this was settled. I simultaneously called the lender and disputed with them, and they verified it was their mistake. They promised to update it. In the meantime  TransUnion had already responded to my dispute and said the information was accurate and that they weren't going to change it.

So... I mean, TU was wrong. My dispute was valid, even tho they denied it. So does this hurt my score?!

I also disputed a CO that I honestly don't believe to be mine. They denied that as well, and I'm waiting for the DV from the CA. If they can't validate it, it goes away, that shouldn't hurt my score at all. But if they do, and if I pay it, does it still hurt my score that I disputed it?

This is frustrating. I thought the dispute process was there to help.

[thornback]

The issue is more with disputing accurate information with the hope of having it removed either due to the creditor/collection agency's inability to verify, or not responding to the dispute at all.    In such cases, the tradeline may be removed initially,  but then re-appear at some point down the road.  When these items re-appear, your scores will drop.    In other cases, creditor/collection agency is able to verify the information in a dispute response,  causing the tradeline to be updated  - sometimes with new or additional negative information if the account had not been updated recently - and this action can drop your scores. 

So yes, the dispute process is there to help - but, can sometimes have an adverse effect. 

[Anonymous]

Ok that helps to know. So the fact that they denied my dispute of the collection and nothing changed on my report (tho I think it says in the remark I disputed it) it shouldn't affect me. I just have to wait for the debt to be validated or not now thru the CA.

All of this should be an entire year of secondary school. It would've helped me a heck of a lot more than sewing boxers and making a birdhouse ever did.

[Azuieldrago]

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@Anonymous wrote:

So many questions. This one is a result of a response I got earlier today telling me that disputing accurate information would hurt my score. I tried searching to learn more but every thread I've read has had minorly conflicting info.

I recently disputed an auto loan that was coded as "unpaid balance" and in my dispute I said that this was settled. I simultaneously called the lender and disputed with them, and they verified it was their mistake. They promised to update it. In the meantime  TransUnion had already responded to my dispute and said the information was accurate and that they weren't going to change it.

So... I mean, TU was wrong. My dispute was valid, even tho they denied it. So does this hurt my score?!  

I also disputed a CO that I honestly don't believe to be mine. They denied that as well, and I'm waiting for the DV from the CA. If they can't validate it, it goes away, that shouldn't hurt my score at all. But if they do, and if I pay it, does it still hurt my score that I disputed it?

This is frustrating. I thought the dispute process was there to help.

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Disputing as its own does not hurt your score. But its what is found during that dispute that can hurt. You may clear one thing but add 2 more. Trans wasn't wrong per say, they were correct by the info they were orginally provided. You contacted the creditor, they repaired it give it some time for the report to update and then dispute again if needed. As for the CO, disputing that because you believe its not yours, your best bet is to go to the reporting collection agency and clear it up with them. Disputing with the credit reports only is for ensuring the info they provide is accurate. Now if they info they are given isnt correct by the creditors, that needs to be cleared first and then the reports. I have disputed many things throughout the yrs. Never once as a dispute on its own hurt me, it was what was found during that came back to bite me. Either because something bad was added or something postive was removed.

[thornback]

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@Anonymous wrote:

All of this should be an entire year of secondary school. It would've helped me a heck of a lot more than sewing boxers and making a birdhouse ever did.

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haha... agree.  I'm all for 'credit as a subject'. 

[Anonymous]

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@Azuieldrago wrote:

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@Anonymous wrote:

So many questions. This one is a result of a response I got earlier today telling me that disputing accurate information would hurt my score. I tried searching to learn more but every thread I've read has had minorly conflicting info.

I recently disputed an auto loan that was coded as "unpaid balance" and in my dispute I said that this was settled. I simultaneously called the lender and disputed with them, and they verified it was their mistake. They promised to update it. In the meantime  TransUnion had already responded to my dispute and said the information was accurate and that they weren't going to change it.

So... I mean, TU was wrong. My dispute was valid, even tho they denied it. So does this hurt my score?!  

I also disputed a CO that I honestly don't believe to be mine. They denied that as well, and I'm waiting for the DV from the CA. If they can't validate it, it goes away, that shouldn't hurt my score at all. But if they do, and if I pay it, does it still hurt my score that I disputed it?

This is frustrating. I thought the dispute process was there to help.

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Disputing as its own does not hurt your score. But its what is found during that dispute that can hurt. You may clear one thing but add 2 more. Trans wasn't wrong per say, they were correct by the info they were orginally provided. You contacted the creditor, they repaired it give it some time for the report to update and then dispute again if needed. As for the CO, disputing that because you believe its not yours, your best bet is to go to the reporting collection agency and clear it up with them. Disputing with the credit reports only is for ensuring the info they provide is accurate. Now if they info they are given isnt correct by the creditors, that needs to be cleared first and then the reports. I have disputed many things throughout the yrs. Never once as a dispute on its own hurt me, it was what was found during that came back to bite me. 

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I'm learning. I don't foresee any but I'll hold off in the future on disputes until I've exhausted other courses of action. 

[Remedios]

Disputing hurts when it comes back as verified if the CO or collection account is not updating monthly.
Any and all updates to negative accounts will either keep the scores suppressed (monthly reporting) or drop the score if the account is not reporting because of "time since negative".
Basically what it does is it says "Its been X amount of months/years and it still remains unpaid"
So, while inaccurate info should be disputed, valid info should be left alone, or attempt settlement/PFD

That is the primary reason for not disputing valid collection

Second problem is, if it's been more than 30 days since you received dunning notice from collection agency, they are not obligated to provide you with any info on this collection. Many will, some wont.
That leaves you with having to dispute with CRAs, and when you dispute simply with "not mine", without submitting a proof, most likely it will result in verification.

[Anonymous]

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@Remedios wrote:

Second problem is, if it's been more than 30 days since you received dunning notice from collection agency, they are not obligated to provide you with any info on this collection. Many will, some wont. That leaves you with having to dispute with CRAs, and when you dispute simply with "not mine", without submitting a proof, most likely it will result in verification.

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So that was further reason why I believe the collection wasn't mine. I never received a notice or anything in the mail. I couldn't say if anyone ever called me, I hardly answer my phone to unknown numbers due to robocalls.

In the end it was the CA that offered to validate it for me. I contacted CenturyLink and two departments couldnt' find me on file. So I contacted the CA and asked them what they would recommend we do and he suggested we try and validate it first.

I'll pay it if its mine. I just want to be sure it's mine. I fired off the dispute to TU because of how easy it is on Credit Karma's app and because of my ignorance of the process. I appreciate the responses here, they've provided a lot of povs that make the picture much clearer.

[Remedios]

Do you know if collection agency owns the debt or only collecting on behalf of Century Link?

[Anonymous]

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@Remedios wrote:
Do you know if collection agency owns the debt or only collecting on behalf of Century Link?

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😬

No, I have no idea. I didn't know to ask and they didn't offer when I called them. What does that affect?