Disputed accounts are not allowed to be on your credit report during the mortgage process. If you have a disputed account on your credit report, your lender will receive inaccurate credit report information especially if it’s on a derogatory mark or late payment. The FICO scoring model treats a disputed account differently. For example, if you dispute a credit card balance the FICO model will not consider the that balance in your scoring algorithm, this may result in a temporary artificial credit score for your lender.
It’s important to know your credit score and what’s on your credit report. Don’t be fooled by look-alike sites the only place to find all three reports for free is AnnualCreditReport.com. If you have a dispute on your credit report follow the steps below to have it removed.
Here are the steps on how to do it:
- Go to the website of the credit bureau that reported the dispute.
- Experian: //www.experian.com/
- Equifax: //www.equifax.com/
- TransUnion: //www.transunion.com/
The credit bureau will investigate your request and remove the dispute comment from your credit report if they find that it is resolved, inaccurate or unverifiable. This process can take a few weeks.
Here are some additional tips for removing dispute comments from your credit report prior to applying for a mortgage loan:
- Dispute the information as soon as possible. The sooner you dispute the information, the sooner it can be removed from your credit report.
- Provide documentation to support your dispute. If you have any documentation that supports your dispute, such as a letter from the creditor or a copy of your credit report, be sure to include it with your dispute.
- Follow up with the credit bureaus to make sure that the disputed item, mark or comment has been removed.
Removing a dispute or a disputed comment from your credit report can take some time and effort, be patient.
Federal law requires each of the three nationwide consumer credit reporting companies – Equifax, Experian and TransUnion – to give you a free credit report every 12 months if you ask for it.