In the world of credit repair, one of the hot topics we deal with on a regular basis is the impact of dispute verbiage on a credit report. As a consumer, you could very well have a 680 or 720 credit score, but still be denied for a loan. Many loan programs out there will not allow you to move forward with the loan until the dispute remarks are removed from that credit report.
So how did we get here and why is this the way things are? Long story short, back in the day shady loan officers would lock in loans that were being mass disputed during their 30-day investigation period. During this time of investigation by the credit bureaus, the disputes go in to a “limbo” status and it will artificially inflate the consumer’s credit scores. Once the investigation is complete and if any of the items are deemed valid, they go back on the report, the scores come back down with it, and now there is dispute verbiage on the report tied to that line item. This leads to folks qualifying for loans they originally never should have been approved for.
Most loan guidelines won’t allow a loan to move forward with the dispute verbiage on the report. In other words, now you are being double-dinged. In most cases, you can call the creditor associated with the dispute verbiage on the report and let them know you no longer dispute. They, in turn, will report that the consumer is no longer disputing, and generally that will come right off of your report.
Are you a loan officer that runs in to these types of issues with your clients from time to time? Are you a consumer that has dispute verbiage on your credit report that you need removed to more forward with your loan? Contact us today for a non-obligatory, free review of your credit situation and we will get our team of experts to look everything over. From there you will be provided with a detailed analysis, as well as a personalized game plan for next steps.