These days, so many people are disputing accounts directly with the credit bureaus or by using a credit repair company. A little know aftereffect deals with credit disputes remaining on the reports. Thus, mortgage lenders may not be able to use the credit report or credit score for a mortgage approval.
Why Credit Disputes Causes The Following Problems With Mortgage Approvals:
When trade lines are disputed on credit reports, that item is not figured into the credit score. This means that a person’s credit scores are not indicative of the actual items reporting on credit. For instance, someone may have a 660 credit score, but a $5,000 collection is in dispute and not reflected in the score. If the dispute is removed, the score could even be in the 500’s so this credit score may not be used until the dispute language is removed and a new score is pulled.
When trade lines are disputed on credit reports, the automated underwriting systems used by
mortgage lenders for pre-approvals do not factor the disputed items in the decision. Therefore the pre-approval is often invalid until the borrower removes the dispute, new credit is re-pulled, and then the automated underwriting is run again with the new scores. There are cases that disputes that are a certain age, under a small dollar amount, or medical may be ok. That is where it is important to speak to an experienced loan officer.
How to Dispute Accounts On Credit
You can dispute inaccurate information on your credit report for free by going to www.annualcreditreport.com. Pull your credit from ALL 3 BUREAUS and dispute inaccurate information. Don’t dispute everything on your credit just because you can. If the items disputed are not removed, make sure that you have the dispute language removed from your credit reports so that when you choose to have your credit pulled, the scores are accurate and usable.
If you choose to hire a credit repair company, make sure that you ask specifically how they handle the process and make sure that once you are complete with their program, that they will help you remove all dispute language.
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How To Take Accounts Out of Dispute Quickly & Free:
There is currently a free way for a consumer to have accounts taken out of dispute directly with the bureaus. Make sure that you do this for anyone in the household that has disputes. Please see the instructions below to remove credit disputes for Equifax, Experian, and Transunion:
- Equifax: Call 404-885-8300. You should be connected to a live agent Monday – Friday 9:00 am – 5:00 pm. Tell them “I need to speak to someone in the Executive Consumer Service Department and I need to have disputes removed from my credit report”. Equifax will take up to 72 hours to remove the disputes.
- Experian: Call 888-210-9101 and 866-673-0140. It is answered by a live person. Tell them “I need the National Consumer Assistance Center to end dispute(s)”. Hours are 11 AM – 8 PM Eastern time and it takes up to 72 hours to remove disputes. An email confirmation will be send when complete. If a representative won’t help, ask for a supervisor or manager.
- Transunion: Call 312-985-2000. It is a machine greeting but just stay on the line and you are transferred to a live person. Tell them “I need to speak to someone in the Special Handling Department for dispute language removal”. Disputes are often removed while you are on the phone with them!
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What to Say in the Dispute Removal
The ease of removing credit disputes depends on the knowledge and willingness of the representative on the phone with you. Here are samples of what you can say to the bureau representatives
- “I need to request removal of compliance condition remarks code of AID (Account in Dispute). I am no longer disputing an account on my credit report”. OR
- “I recently received a copy of my credit report. There is a compliance condition code causing an Account Information Disputed by Consumer remark to appear. I am not disputing the account so I need the compliance code removed in order to eliminate the account in dispute remark.”
The bureaus may not be able to remove dispute language in every case. Sometimes they will refer the consumer back to the creditor reporting the trade line. If a representative is not being helpful, hang up and call again. Hopefully a more willing representative would be available to help.
Once all disputes are removed, then contact Team Move for pulling your credit for your home loan approval.
Team Move lends in areas such as Wilmington, Leland, Hampstead, Jacksonville, Camp Lejeune, Whiteville, Shallotte, Southport, Elizabethtown, Lumberton, Fort Bragg, Pope Air Force Base, Fayetteville, Rockingham, Raleigh, Garner, Smithfield, Clayton, Goldsboro, Charlotte, Greensboro, Winston-Salem, Durham, Chapel Hill, Burgaw, Castle Hayne, Holden Beach, Supply, Ocean Isle Beach, Sunset Beach, Hubert, Tabor City, Carolina Beach, Kure Beach, Laurinburg, Topsail Beach, North Topsail Beach, Surf City, Sneads Ferry, Richlands, Wrightsville Beach, New Bern, Oak Island, Saint James, Wallace, Sanford, Pittsboro, Apex, Cary, Raleigh, Holly Springs, Fuquay Varina, Siler City, Southern Pines, Aberdeen, Pinehurst, Whispering Pines, Vass, Spring Lake, Pittsboro, Fayetteville, Lillington, Hope Mills, Dunn, Angier, Smithfield, as well as the rest of NC. North Myrtle Beach, Myrtle Beach, Conway, Loris, Little River, Longs, as well as the rest of South Carolina and Virginia.