Credit Repair Glossary
Plain-English definitions for every FCRA section, dispute mechanic, and credit-score term you'll encounter. Each definition cites the federal statute or industry source it's grounded in.
FCRA & Federal Law
The Fair Credit Reporting Act, 15 U.S.C. §1681 — federal law governing how credit reporting works.
FCRA §611(a)(1) requires bureaus to investigate disputed items within 30 days. The bedrock dispute provision.
FCRA §611(a)(7) requires bureaus to disclose how they verified a disputed item within 15 days of consumer request.
FCRA §605(a) limits how long negative items can stay on a credit report — 7 years from date of first delinquency.
FCRA §605B requires bureaus to block fraudulent identity-theft accounts within 4 business days of receiving the consumer's affidavit.
FCRA §623 sets the duties of furnishers (creditors) to report accurate information and respond to consumer disputes.
Date of First Delinquency — the date a consumer first became delinquent on an account that eventually went to charge-off or collection.
Resetting the date of first delinquency on a credit report — illegal under FCRA §605(a).
The automated system bureaus and furnishers use to exchange dispute information. Often the basis for weak 'verifications.'
FCRA section authorizing consumer civil suits for negligent or willful FCRA violations.
Credit Scores
An accounting status creditors apply to delinquent accounts (typically 180+ days late). The debt is still owed.
The percentage of available credit you're using. 30% of your FICO score.
The credit score model developed by Fair Isaac Corporation. Used by 90%+ of U.S. lenders.
The credit score model developed jointly by Equifax, Experian, and TransUnion.
A credit-report pull triggered by an application for new credit. Costs 3-10 points; stays 2 years.
A credit-report pull that does not affect the credit score. Pre-approvals, employment checks, self-pulls.
The day a credit card billing cycle ends. The balance on this date is what gets reported to the bureaus.
Lender categorization of credit-score ranges: poor, fair, good, very good, exceptional.
Dispute Mechanics
A round-2 dispute letter under FCRA §611(a)(7) demanding the bureau disclose how they verified a previously-disputed item.
A follow-up dispute filed after a round-1 dispute returns 'verified as accurate' — usually MOV + direct furnisher.
USPS service that provides proof of mailing and delivery — required for FCRA dispute audit trails.
A non-FCRA letter asking a creditor's customer-relations team to remove an accurate adverse mark as a courtesy.
A dispute filed directly with the furnisher (creditor) rather than through a credit bureau.
Collections & Debt
A debt that has been turned over to a collection agency, typically appearing as a separate account on credit reports.
Federal law that regulates debt collectors. Gives consumers the right to demand validation of debts.
A consumer's right under FDCPA §809(b) to demand a collector produce documentation proving the debt.
A negotiated agreement where a collector removes the collection from a credit report in exchange for payment.
Credit Products
A single account record on a credit report. Each credit card, loan, mortgage, or collection is its own tradeline.
Any entity that reports consumer credit data to credit bureaus — banks, lenders, collectors, etc.
Equifax, Experian, or TransUnion — the three nationwide consumer credit reporting agencies.
The maximum balance a consumer can carry on a revolving credit account. Plays a major role in utilization math.
A credit card backed by a cash deposit. Used to build or rebuild credit.
A small loan where payments are reported to bureaus while the loan principal stays in a savings account until paid off.
Moving an existing credit card balance to a new card with a 0% intro APR period.
A federal court process for discharging debts. Stays on credit reports 7-10 years.
General
A free FCRA-backed restriction that prevents new accounts from being opened in your name without a temporary lift.
Unauthorized use of personal identifying information to open credit accounts or commit fraud.
The federally-recognized affidavit consumers file at IdentityTheft.gov to invoke FCRA §605B fraud-block protections.
An FCRA-mandated flag on a consumer's credit file requiring identity verification before new credit is extended.
A formal complaint filed with the federal Consumer Financial Protection Bureau against a bureau, lender, or collector.
The standardized data format furnishers use to report consumer credit data to bureaus.
The only government-authorized source for free credit reports from all three bureaus.
A service that alerts consumers to changes on their credit reports — new accounts, hard inquiries, balance changes.
A paid service that pushes credit-report corrections through bureaus in 3-7 days, vs the normal 30-day cycle.
Federal law (15 U.S.C. §1679) regulating credit repair organizations. Prohibits guarantees of specific score outcomes.
2003 amendment to the FCRA that mandated free annual credit reports, fraud alerts, and identity-theft protections.
The name/address/employment data on a credit report — frequently a source of mixed-file errors.
A credit report that has been incorrectly merged with another consumer's file.
A free credit-monitoring service showing VantageScore 3.0 from Equifax and TransUnion.