Should my FICO score drop during a credit dispute process?

Question

Recently, I attended a seminar where a very respected seminar speaker gave the audience a strategy to increase FICO scores. When I applied the strategy, my FICO score dropped 42 points!!! I contacted the speaker for guidance on what I should do now but the only thing he offers as support is that a dispute cannot drop a FICO score and basically "tough luck". I contacted FICO and the representative there says a dispute can drop a score. Does anyone know where I can find the correct answer?

Answer 1

Yes sometimes a dispute can drop a score, and, sometimes the removal of a negative can drop a score instead of raising it. It all depends on how old the negative is and how long it's been since the data furnisher had updated the account.



If a negative has been reporting for a few years 'without being updated' then even while it's hurting it's also helping. If it hadn't been updated for quite awhile then even though it's a negative it's also giving you an age history. If the account is updated, making it look newer then it actually is, then that will certainly drop your scores since the (false) newness of the negative will outweigh the age factor.



In the same tone, if the negative hadn't been updated in awhile and it was removed from your reports through your dispute then, even though it's a negative, you'd be losing the age history and your scores 'could' drop because of that. Though your scores should rebound fairly fast.



If the negative is reporting incorrectly then you have a legal right to dispute it.

Answer 2

You disputed a valid item. Not good.

This may have been what happened.

The score is usually about 45 to 60 days behind on your activity.

You may have disputed the amount, seen an increase in your score from your dispute (for 30 days), then the item comes back as verified and damages your score.



Also credit bureaus make notations that you do not see about your disputes.

I read, that you get a "grade". So if you have real issues someday, you will not get the respect you deserve.



Never dispute valid items again. It makes no sense

That seminar stole your money...

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Could you give the name of the company?

Im curious if they have any complaints on the internet

Answer 3

Many things on your credit report raise your score. If you dispute one of those things and it is removed because of your dispute, then your score will drop to where it would have been if that thing had never raised your score.



Many things on your credit report keep your score from dropping. If you dispute one of those things and it is removed because of your dispute, then it will stop keeping your score from dropping, so your score will drop.



FICO is right. The speaker is wrong. That speaker should not be very respected.

Answer 4

Disputes actually can lower your credit score. The only way to get good information is to go to the sources: Federal Trade Commission: ftc.gov/credit and FICO's website: myfico.com.

Answer 5

stressful inquiries in basic terms ding your score some factors. in the adventure that your credit is so close that a pair of stressful inquiries drops your score to the component to no longer qualifying, then you in all danger should not be figuring out to purchase immediately. via ways, your score rebounds right removed from stressful inquiries. 2 inquiries with a three month unfold, in all danger won't drop your score as much as you concern. you certainly do no longer choose to be conscious for any new strains of credit or close any modern tradelines. that ought to reason a drop sufficiently vast to disqualify you.