Removing a disputed item

[Anonymous]

I am hoping someone can help me understand this better. I had a disputed item on my credit, we are trying to get a mortgage and the loan officer said we would have to get the dispute removed from my credit before they could do anything. So I sent a non dispute letter, it was removed and my credit dropped by 51 points....why in the world did it drop so much??? Will it go back up anytime soon?

[Anonymous]

What was it you were disputing?  OC or CA?  A late?

[Anonymous]

Sorry I am new to this and not sure about all of abbreviations that are used. It is an old credit card from many years ago that was turned over to a collection agency.

[Anonymous]

CA = Collection agency.

Getting a collection removed should have helped your score, not drop it. 

Is there any way for you to cut and paste the tradeline in question?

[Anonymous]

Unfortunately the collection did not get removed, just to "dispute" It said "Account information disputed by consumer". The dispute itself was removed, the collection was not removed.

[Anonymous]

When you initially disputed it did your score increase?

The only reason I can see for this to happen is if you got an increase when the dispute happened and they took it back after removing the dispute.

But, since it was a CA account, it never should have been removed from scoring in the first place.

Have you got a new copy of your credit report since this happended.  It might be a good idea to.  See if something else happened.

[llecs]

OP, some folks use "collection" loosely, but per FICO scoring it makes a big difference. For clarity, was this a collection agency reporting on behalf of a debt, OR was this a charge-off like a CC, phone bill, loan, etc.?

Were both scores (the before and after that resulted in the 51 pts) from the lender? Or was the 2nd score from another source?

[Anonymous]

How does a junk debt buyer play into this? Are they the OC or a CA?

[Shogun]

they are a CA.

[AndySoCal]

When an account is disputed it remains nuetral in the scroing process. Once the dispute is removed on the disputed acocunt the account is fully factoted in the the score.