I've never disputed a collection, so I don't don't have a good handle on how it works or what happens. Are you saying that after you disputed it, but before it was resolved, your FICO score jumped to 740 (based on the dispute)? But when it was resolved (against you), it went back down to 675?
If that actually works, it seems like people would exploit it all the time. I'm not being critical, just curious and maybe a little surprised that it would work (if that's what you're saying).
When you dispute an account it’s removed from FICO score calculations while it’s being investigated but it’s still on your report. Did you get a manual review or was it an instant approval? On a manual review, they would have seen the account and seen it marked as a dispute, regardless of the score. On an instant approval, the account would still be there as well but I don’t know how the algorithms would look at a dispute item. I imagine it would still be counted and weighed into the decision.
Now if it was after 30 days and it got removed from your credit report, then you got the new card and it came back, that could pose a problem later but CUs usually aren’t that finicky and I have seen quite a few rebuilders with DCU cards. I wouldn’t really worry about it.
Your situation is a complex one that could use the eye of someone more experienced with these matters, maybe someone with the ability to do so can tag in someone like RobertEG or CGID to help you.
I think if they gave you the card based off the score that you don’t have anymore, you probably won’t get the CLI, but it also sounds like the re-appearance of this debt caused additional damage and you might want to take some steps to get it fixed if you went from 690 to low 600s.
Disputes that take longer than 30 days will be deleted by the credit bureaus but if the creditor submits information confirming the validity of the debt any time up until the expiration of the reporting period as defined by the date of first delinquency, it will be added back which is what happened here.
I am actually worried about some similar happenings with my EQ and EX because I disputed the dates reported on my ACS student loans and they have now disappeared off my reports. I ended up being homeless while fighting for disability so my student loans went into repayment and I had no means to pay them until 2014 when I paid them in full but they dotted lates on my report and closed it as a paid satisfactory account which means that it would age off my lates starting this year then some more next year then carry 60D into 2021 when the accounts were actually delinquent since 3/2012 when they first called me and never brought current. If ACS throws it back on there, I am worried about how much effort it will be to get the damage reversed although I have my credit reports from the CRAs saved so at the very least, I should be able to get them to restore the accounts to the old undesirable status.
So yeah, I get it, and I totally understand, I just am not well-versed in these things either and in fact the same day I disputed them I found out that when they come back they can beat your score all over again so I have been stressed about the same thing happening to me because while I’m right about the dates, I don’t have the paperwork to back it up so if they don’t agree I’m stuck.