FCRA (Fair Credit Reporting Act)
The federal law governing how consumer credit information is collected, shared, and disputed.
FCRA gives consumers the right to a free report, the right to dispute inaccurate items, and the right to sue for willful violations. Bureaus must investigate disputes within 30 days (45 if additional information is provided).
FCBA (Fair Credit Billing Act)
Federal law giving consumers dispute rights over billing errors on open-end credit accounts.
FCBA covers unauthorized charges, math errors, and undelivered goods/services. Consumers must dispute in writing within 60 days of the statement showing the error.
FDCPA (Fair Debt Collection Practices Act)
Federal law restricting how third-party debt collectors may contact and pursue consumers.
FDCPA prohibits harassment, false statements, and unfair practices. Consumers have the right to verification of the debt and to require collectors to cease contact.
FICO Score
The Fair Isaac Corporation 300-850 credit score used in roughly 90% of US lending decisions.
FICO 8 is most common in consumer credit cards; FICO 2/4/5 (mortgage industry); FICO 9; and FICO 10/10T are also in market. Different lenders pull different models, so a single 'score' doesn't exist.
VantageScore
The 300-850 scoring model jointly developed by Equifax, Experian, and TransUnion.
VantageScore is the dominant consumer-facing score (Credit Karma, free credit apps). Most actual lending decisions still use FICO. Treat VantageScore as directional only.
Credit Bureau
A consumer reporting agency that collects and sells credit data — primarily Equifax, Experian, and TransUnion.
Each bureau maintains its own file, so the same consumer can have three different scores. CloudsCreditRepair™ pulls tri-bureau data on every assessment.
Hard Inquiry
A credit pull tied to a new credit application that is visible to lenders and impacts the score.
Hard inquiries cost roughly 2-5 FICO points each and stay visible to lenders for 24 months (scoring impact wanes after 12).
Soft Inquiry
A credit pull for pre-approval, self-check, or account review that has no scoring impact.
Self-checks, employer screening, and most pre-qualifications are soft. They are visible only to the consumer.
Tradeline
A credit account on a credit report — revolving, installment, mortgage, or collection.
Each tradeline reports balance, limit, payment history, and status. The mix and depth of tradelines drive the bulk of FICO scoring.
Charge-Off
A creditor's accounting write-off of a delinquent account, typically after 180 days past due.
Charge-off does not erase the debt — collection rights are usually sold or transferred. Charge-offs remain on the report 7 years from first delinquency.
Collection Account
A debt sold or assigned to a third-party collector after the original creditor charges it off.
Collections damage scores most when newly reported. FICO 9 and 10 ignore paid collections; older models still penalize them.
Late Payment
A reported tradeline payment 30+ days past due.
30-day late = significant score drop; 60/90/120 each compound. Single late payments remain on the report 7 years but their scoring weight fades over time.
METRO 2
The standardized data format furnishers use to report consumer credit information to the bureaus.
Inaccurate METRO 2 fields (account status, payment rating, balance) are a primary basis for dispute. CloudsCreditRepair™ disputes against the actual data the furnisher reported, not against generic language.
e-OSCAR
The electronic system bureaus use to transmit consumer disputes to data furnishers.
Every dispute filed to a bureau is converted to an e-OSCAR Automated Consumer Dispute Verification (ACDV) sent to the furnisher. Understanding the ACDV is central to professional dispute work.
Permissible Purpose
The legal grounds under FCRA that allow a party to pull a consumer credit report.
Credit applications, employment screening, account review, and court orders are common permissible purposes. Pulls outside permissible purpose are FCRA violations.
Statute of Limitations (Debt)
The state-specific time window during which a creditor can sue to collect on a debt.
Ranges from 3 to 15 years depending on state and debt type. Making any payment can restart the clock — a frequent trap for consumers.
Credit Freeze
A consumer-initiated lock on a credit file that prevents new inquiries from accessing the report.
Freezes are free and reversible. They are the strongest defense against new-account identity theft.
Fraud Alert
A flag placed on a credit file requiring lenders to verify identity before opening new credit.
Initial fraud alerts last 1 year; extended alerts last 7 years and require an Identity Theft Report.
Goodwill Adjustment
A creditor's discretionary removal of a late payment or derogatory mark as a courtesy.
Goodwill requests are most effective for one-off lates on long-standing accounts in good standing. Not all creditors honor them.
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