This article unfortunately will most likely increase the knowledge base of other credit repair companies which I of course never feel it’s my job to do, I do want to give the consumer a better understanding of things.
THEN:
Many years ago (no, not in a galaxy far far away) one of the BIGGEST complaints about credit repair (management, restoration etc ) companies was that the negative information was removed for a short time and then popped back on later.
Many years ago (10+) if an account was being disputed by the consumer (or credit company) the credit bureaus would temporarily remove the account from the consumer credit file while the investigation was being done.
As you would imagine if there were 20 negative accounts and they were removed your credit score would skyrocket as there is no negative accounts on the credit file at the moment.
Once the investigation was complete then they would be put back onto the credit report (minus any accounts that were removed so let’s say 3 were removed). Then 17 negative items go back onto your credit report and your credit score dramatically drops back down to close to where it was before.
If you timed it right back then you could get your new car or new home at an amazing rate so you may not care but many did as you got what you wanted. So that is how disputed accounts (accounts that were being investigated for accuracy) were handled. So it was basically a loop hole that the credit bureaus finally figured out.
NOW:
Today what happens with disputed accounts which so many people (especially most credit repair companies don’t know) is now instead of removing the account the account is marked as disputed.
So what does this mean you ask? The dispute is a compliancy code which masks the account from being calculated. SO while you can physically see the account it is not being calculated into the credit score.
Now specifically for mortgage companies I see some lenders needing all disputes removed as you would imaging it is looked at as the score you have is not a true and accurate score.
Others only require disputes removed with a balance over $500 and they say medical accounts are not a factor.
So different lender have different requirements so there is no clear cut “this is how it is”.
I hope this helps you and if you’re interested in learning more check out my book “The Real World of Credit” at www.bn.com or for a hard copy (in full color) email me at : wayne@waynethecreditguy.com
