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Do Disputes Lower Your Credit Score


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I know they are not supposed to, but I think TU does something to make them drop. Before you hack at me consider this:

I pulled my report with score. That same day I disputed an item that TU reinserted without notice (ID Theft item). The item was a derrogatory charge-off for $5k. Four days later I pulled my score again -- from the same place -- and my score had dropped 21 points. Nothing had changed in those 5 days other than my disputing the reinserted item and the disputed item was still on the report.

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I know what you're getting at, Methuss.

This is completely unconfirmed, but there is suspicion that when an item is "verified" the updating of the "as of date" shows FICO a "new" negative factor needs to be added into the equation.

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My Equifax dropped substantially (636 to 589) in one month after one negative item was deleted and another had the back payment history updated to reflect no lates. I also paid two credit cards off. All of the sudden my FICO score analysis is telling me that I show too many missed payments. That was never on there before. I'm really confused and very upset. It doesn't seem like they would have added something like that into their "magic" formula, but you never know....

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Here's what's not calculated in FICO according to Fair Isaac :

Your race, color, religion, national origin, sex and marital status.

US law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.

Your age.

Other types of scores may consider your age, but FICO scores don't.

Your salary, occupation, title, employer, date employed or employment history.

Lenders may consider this information, however, as may other types of scores.

Where you live.

Any interest rate being charged on a particular credit card or other account.

Any items reported as child/family support obligations or rental agreements.

Certain types of inquiries (requests for your credit report).

The score does not count “consumer-initiated” inquiries – requests you have made for your credit report, in order to check it. It also does not count “promotional inquiries” – requests made by lenders in order to make you a “pre-approved” credit offer – or “administrative inquiries” – requests made by lenders to review your account with them. Requests that are marked as coming from employers are not counted either.

Any information not found in your credit report.

Any information that is not proven to be predictive of future credit performance.

Whether or not you are participating in a credit counseling of any kind.

The CRA's take the basic FICO model and change it to fit their ideal credit picture - hence, FAKO. There's nothing to say TU thinks your time in one location shows stability, which indicates some sort of responsibility....

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