Which condition allows a disputed trade line to not affect the underwriting process?

The condition that allows a disputed tradeline to not affect the underwriting process is when it is marked "paid in full" or "resolved." This status indicates to the underwriters that the debted amount has been cleared or settled, eliminating concerns regarding the borrower's current financial obligations tied to that specific tradeline. When a tradeline shows a resolution like this, it demonstrates that the borrower has taken responsibility for their debts and shows a willingness to maintain their financial commitments, which can assure underwriters during the lending process.

Other conditions, such as a balance under $250 or being a recent dispute, may not inherently signify that the borrowing situation is favorable or that the borrower has resolved the issue. While such factors could mitigate concerns in some contexts, they do not provide the same level of assurance about the borrower's overall creditworthiness as a resolved status does.