Credit & Dispute Glossary

Written notice a creditor must send when they deny credit, increase rates, or take negative action based on your credit report. Must include which bureau was used and your right to a free report.

Your free credit report from AnnualCreditReport.com. You're entitled to weekly free reports from all three major bureaus.

Someone added to another person's credit card account. The account history appears on the authorized user's credit report.

The total amount currently owed on an account.

A legal process that discharges or restructures debt. Chapter 7 stays on your report 10 years; Chapter 13 stays 7 years.

Short for credit bureau. The three major bureaus are Equifax, Experian, and TransUnion.

Federal agency that enforces consumer financial laws including the FCRA and FDCPA. Accepts consumer complaints at consumerfinance.gov.

When a creditor writes off a debt as a loss after ~180 days of non-payment. The debt still exists and can be collected. It stays on your report 7 years.

A specialty consumer reporting agency that tracks bank account history. Used by banks when opening new accounts.

A debt that has been transferred to a collection agency after the original creditor gave up on collecting it.

A 100-word statement you can add to your credit report to explain a disputed item that wasn't removed. Your right under FCRA § 611(b).

Companies that collect and maintain credit history data. The three major ones are Equifax, Experian, and TransUnion.

Restricts access to your credit file, preventing new accounts from being opened in your name.

One of the five FICO score factors. Having both revolving (credit cards) and installment (loans) accounts.

A company that charges fees to dispute items on your behalf. Regulated by CROA. Not the same as credit dispute software.

The percentage of your available revolving credit you're currently using. One of the most impactful FICO factors.

Federal law regulating credit repair companies. Prohibits advance fees and false claims.

A company that purchases charged-off debt from creditors at a discount and then attempts to collect it.

Your right under the FDCPA to request proof that a debt collector has the right to collect a debt and that the amount is accurate.

Failure to make payments as agreed. Different creditors define default differently, but typically after 90–180 days.

Any negative item on your credit report: late payments, collections, charge-offs, bankruptcies, judgments.

A formal request to a credit bureau or data furnisher to investigate and correct inaccurate information.

The electronic system credit bureaus use to process disputes with data furnishers. Known for treating disputes as form codes rather than individual reviews.

One of the three major US credit bureaus.

One of the three major US credit bureaus.

Federal law governing credit bureaus, data furnishers, and consumers' rights to accurate credit reports.

Federal law limiting what third-party debt collectors can do and say when collecting debts.

The most widely used credit scoring model, used in 90%+ of lending decisions. Scored 300–850.

A notice placed on your credit file asking lenders to take extra steps to verify your identity before extending credit. Less restrictive than a freeze.

Any company that provides information to credit bureaus — banks, credit card issuers, collection agencies, etc. They have legal obligations under FCRA § 623.

A letter asking a creditor to remove an accurate negative item as a courtesy based on your prior good history.

A credit check made when you apply for credit. Can temporarily lower your score 5–10 points.

Home Equity Line of Credit. A revolving credit line secured by your home.

When someone uses your personal information to open accounts or make purchases in your name.

A record of when someone accessed your credit report. Hard inquiries affect your score; soft inquiries don't.

A loan repaid in fixed monthly payments over a set term: car loans, mortgages, student loans, personal loans.

A court ruling that you owe a debt. Judgments can lead to wage garnishment. Paid judgments may still appear on your report.

A payment made 30+ days past the due date. First reportable at 30 days.

Debt from healthcare services. As of 2025, medical debt under $500 and paid medical debt are no longer factored into most credit scores.

A request to a credit bureau to explain how they verified a disputed item. Useful when a dispute is rejected.

When another consumer's information appears on your credit report due to similar names or SSNs.

Any derogatory mark on your credit report.

The company you originally borrowed from, before any debt was sold or sent to collections.

The date of your first missed payment that led to a charge-off. Critical for calculating when a negative item should fall off your report.

An agreement to pay a collection in exchange for its removal from your credit report.

The largest factor in FICO (35%). Record of on-time vs. late payments across all accounts.

A written promise to repay a debt, typically used for personal loans and student loans.

The illegal practice of resetting the date of delinquency when debt is sold, making it appear newer than it is.

When a lender reclaims collateral (usually a vehicle) after default.

Credit with no fixed payoff date — you can carry a balance and make minimum payments. Credit cards are revolving.

A dispute letter that invokes FCRA § 609 to request verification of items on your report.

The FCRA provision giving you the right to dispute inaccurate information and requiring bureaus to investigate within 30 days.

The FCRA provision placing obligations on data furnishers to report accurate information and respond to disputes.

A credit check that doesn't affect your score: checking your own report, background checks, pre-approval screening.

The time limit for a creditor to sue you to collect a debt. Varies by state and debt type.

Any account that appears on your credit report: credit cards, loans, collections, etc.

One of the three major US credit bureaus.

See Credit Utilization.

An alternative credit scoring model created by the three bureaus. Scored 300–850 like FICO but not used in most lending decisions.

A signed agreement to repay a debt. Statute of limitations varies by state.

Old debt past the statute of limitations that collectors attempt to revive, sometimes illegally.