Should You Apply while in dispute?

worked for me with equifax and citi. Make sure everything is "in dispute" at one time and give it a shot.

 

Since I never fiddle with the CRAs, my answer may or may not be correct, but personally Idoubt that it would make much difference.

 

You'll have better luck with auto approvals during investigations because your FICO score gets a bump, but I would suggest only applying for new credit when you are clean.

 

My experience is that when I dispute, the score does not chnge while the item is being disputed. When they verify, my score goes down one or two points. Does not make sense.

I disputed two items five weeks ago. No change in score until they verified both items, and I lost a point (both items were positive tradelines but were not mine). I just disputed seven more items and my score did not move. I will see what happens when they resolve the dispute.

 

Disputing doesn't always increase your score, it basically just removed the disputed item out of the scoring equation (at least on true FICO, not true on Credit Expert). Disputing positive tradelines that are not the oldest on your report and when the number of accounts with and without the tradelines are not either too many or too few (3-8 or so) should have no significant effect.

 

Applying with dispute pending, law

Notification of deletion of disputed information. Following any deletion of information which is found to be inaccurate or whose accuracy can no longer be verified or any notation as to disputed information, the consumer reporting agency shall, at the request of the consumer, furnish notification that the item has been deleted or the statement, codification or summary pursuant to subsection (b) or (c) of this section to any person specifically designated by the consumer who has within two years prior thereto received a consumer report for employment purposes, or within six months prior thereto received a consumer report for any other purpose, which contained the deleted or disputed information.

- Fair Credit Reporting Act, § 611, d

That would lead one to believe that there's nothing to lose. Apply, and follow up to see if they comply. I'd like to see what happens.

 

Re: Applying with dispute pending, law

Just disputing something does not remove it, even temporarily, from your report.

We did a refi and the underwriter questioned why/what we were disputing (we had 5 items on Experian in dispute). Had to document each of them. The underwriter said any disputes raise a flag and - for their underwriting standards - requires a written explanation.

-mj

 

Where were you looking for your score? TU? Experian? Those are NOT FICO scores... only Equifax via www.myfico.com currently provides consumers their scores. FICO scores are the only ones that matter, everything else is smoke and mirrors.