The disputes that you file with the credit bureau regarding incorrect or inaccurate information does not get recorded on your credit report. Since our credit score is solely dependent on the information that is present on your credit report, filing disputes does not affect the credit score in any way.
If anything filing disputes is a way to ensure that incorrect or inaccurate data does not cause unnecessary harm to your credit score. You should not hesitate in filing a dispute for information that you believe is listed in error. It is the best and perhaps the only way of making sure that the credit bureaus list only the up-to-date and correct data on your credit report.
Also disputing a particular account or transaction does not cause that transaction or accounts to disappear from your credit report. Only after the investigation is over is the account updated or deleted as may be the result of the investigation. This is one of the reasons why people think that disputing an error has an effect on the credit score. What happens when dispute is filed with the credit bureau is that the credit bureau contacts the source of information, your lender, and asks him to verify its records. The time allotted for a dispute to be resolved according to the fair credit reporting act is 30 to 45 days. During restoration the account continues to reflect on the persons credit report. No information is deleted during this period. Depending upon the response received from the creditor and the conclusion reached at investigation the information in the account is updated, deleted or remains unchanged.
In case the lender fails to respond within a period of 30 days as is mandated by the fair credit reporting act, the disputed information is deleted from the credit report. It should also be pointed out here that any credit repair organization claiming to temporary negative information from a credit report by disputing it incorrect in their claims.
The credit agencies are constantly trying to make their credit scoring model as accurate as possible. They are trying to develop a system that effectively reflects the creditworthiness of a consumer. Reporting disputes about incorrect information on your credit report helps to accomplish this.