Credit words, explained
Short, plain meanings of the words you'll see on your report and in your letters.
Credit report
A list of your loans, cards and bills, and how you paid them. Three companies keep one on you.
Credit bureau
One of the three companies that keep credit reports: Equifax, Experian and TransUnion.
Credit score
A number made from your credit report. Lenders use it to decide on loans. We never promise to change it.
Dispute
A letter that says "this is wrong, please check it." The bureau must look into it, usually within 30 days.
Verified
The bureau checked with the company and kept the item. You can ask how they checked it.
Charge-off
The lender stopped expecting payment and wrote the debt off. You may still owe it, and it can be sold to a collector.
Collection
A debt that a collection company is now trying to collect. It can show on your report.
Debt collector
A company that collects debts for others or buys old debts, like LVNV.
Original creditor
The company you first owed, like a bank or card company, before a collector got the debt.
Past due
The amount that is late right now.
Hard inquiry
A note that someone checked your credit because you applied for credit. It counts for about a year.
Goodwill letter
A polite request to remove a late payment that was real. The lender doesn't have to agree.
Certified mail
Mail with proof it was sent. A return receipt also proves it arrived.
FCRA
The Fair Credit Reporting Act: the federal law that lets you dispute errors on your credit report.
FDCPA
The Fair Debt Collection Practices Act: the federal law that says how debt collectors must treat you.
CFPB
The Consumer Financial Protection Bureau: a U.S. agency where you can file a free complaint.
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