There are potential positives in disputing accounts. For example disputing a credit account that is incorrectly reporting negative information and successfully removing that from your credit account will typically boost FICO scores. However the dispute must work through the process in order to remove the negative information and this could potentially delay the loan process.
Although FHA loan originations have recently declined, HUD issued Mortgagee Letter 2013-24 on August 15, tightening (with the stated purpose of clarifying and amending previous guidance) FHA borrower restrictions effective with all case numbers assigned on or after October 15, 2013. This guidance applies to all FHA programs with the exception of non-credit qualifying streamline refinances and the Home Equity Conversion Mortgage.
Many people have been hurt by the economy over the past few years. Most have had their credit damaged and many have had to declare bankruptcy, do a short sale of their home, a foreclosure, pre-foreclosure sale, or a deed in lieu of foreclosure.
Regardless of whether or not you are planning to make a major purchase (home, vehicle, home furnishings, etc.) in the immediate future, it is advisable to keep your credit score as high as possible. Although there are sometimes ways in which you can obtain your credit score without incurring a charge, in general, obtaining your actual score costs something in the neighborhood of $10. All consumers are eligible however, to obtain one free credit report (less the credit scores) from each of the nationwide consumer credit reporting companies (Equifax, Experian, and TransUnion) every 12 months.
When dealing with your credit, the best approach is to head off problems before they occur. If you are having problems paying your bills, contact your creditors immediately and try to work out a modified payment plan with them that reduces your payments to a more manageable level. Don’t wait until your account has been turned over to a debt collector.