When reviewing a borrower’s credit report, one detail can drastically alter the outcome — even if it looks like a small footnote. We’re talking about dispute comments. These simple notations can make a big impact. And while consumers might think they’re helping their scores by disputing negative items, the reality can be a bit more complicated.
What Are Dispute Comments?
Dispute comments are statements placed on a credit report when a consumer challenges an account or data they believe is incorrect. It might read something like: “Account in dispute – reported by subscriber” or “Consumer disputes account information.”
Read more: How Dispute Comments Can Inflate Your Credit Score (and Delay Your Loan)Once a dispute is filed, the credit bureaus are required to temporarily suppress the impact of that negative item during the investigation. That means late payments, charge-offs, or collections may be ignored when calculating credit scores — resulting in an artificially inflated score.
Why This Matters to Lenders
Here’s where it gets risky: if you’re a loan officer or underwriter, and you pull a credit report with active disputes, you may be looking at a credit score that doesn’t reflect reality. This can cause you to lock in a rate, or even approve a borrower, based on inaccurate data. If the dispute is later removed or resolved, their real score might be significantly lower — which could jeopardize the loan.
That’s why many lenders require dispute comments to be removed before moving forward. It’s not about denying credit — it’s about getting a true, accurate snapshot of the borrower’s financial picture.
So, Why Can’t You Have Them?
It’s not that dispute comments are bad — they serve a purpose in protecting consumers. But they don’t belong on a credit report during underwriting. If someone is actively applying for a mortgage, auto loan, or business funding, these comments need to be cleared so the score reflects the true risk.
🎥 Watch: How to Remove Dispute Comments
Our CEO and founder, Sam Parker, breaks it down in this quick video — how dispute comments work, how they impact credit scores, and what you can do to remove them before applying for a loan.
Need help removing dispute verbiage from your credit report?
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👉 Contact us now to speak with a credit expert.
