Score drop after change in description of Trade Line

[rodzilla2013]

Hello All,

I experienced a credit score drop of 30 points on my equifax after 3 of my Trade lines updated from disputed to the actual status (paid collection, Foreclosure, etc.)..

has anyone ever seen this before??

Thanks

[DaveSignal]

When there are dispute comments on a tradeline, FICO does not score most factors of that tradeline.  When you removed the dispute status, FICO starting scoring your report normally.

[rodzilla2013]

Hey Dave,

Thanks for the reply,

Whats funny about this is that when this wasnt disputed my score was at 661 and after the dispute the score seems to have went down...

Thanks

[DaveSignal]

The dispute prompts the creditor to either validate or change the existing tradeline.  Even if all they do is validate and leave the tradeline as-is, there is still a new update of the negative status for the present month.  ie:  "we checked it and it is still a charge-off".   In many cases, FICO penalizes for this, I am not sure why. This is one of the reasons why disputing accurate information is not advocated on these forums.

If the collections or charge-offs are paid, you could try goodwill letters to the collection authority.  There are many myFICO member documented accounts of this method working to remove accurate baddies.  

If there is actually something being reported inaccurately, you may get better results sending a direct dispute to the collection authority or original creditor, depending on who is reporting, along with some evidence of the inaccuracy.