Unlock Your Financial Freedom: 55 Essential Credit Repair Terms You Need to Know Now!

Here’s a glossary of terms commonly used in the credit repair industry:

1. **Account Number**: A unique identifier assigned to each financial account.
2. **Adverse Action**: A negative action taken by a lender, such as denial of credit, due to information in a credit report.

3. **Annual Percentage Rate (APR)**: The yearly interest rate charged on borrowed money.
4. **Authorized User**: A person permitted to use another person’s credit account without being responsible for the debt.
5. **Bankruptcy**: A legal proceeding involving a person or business unable to repay outstanding debts.
6. **Charge-Off**: A declaration by a creditor that an amount of debt is unlikely to be collected.
7. **Collections**: Accounts sent to third-party agencies to recover unpaid debt.
8. **Consumer Credit Counseling**: Services that provide advice and assistance in managing debt and credit issues.
9. **Credit Bureau**: An agency that collects and provides credit information about individuals.
10. **Credit Counseling**: Professional advice to help manage and reduce debt.
11. **Credit Freeze**: A security measure that restricts access to a credit report, making it harder for identity thieves to open accounts.
12. **Credit Limit**: The maximum amount that can be borrowed on a credit card or line of credit.
13. **Credit Monitoring**: Services that track changes in credit reports to alert consumers of potential issues.
14. **Credit Report**: A detailed record of an individual’s credit history.
15. **Credit Score**: A numerical representation of a person’s creditworthiness.
16. **Creditor**: An entity to which money is owed.
17. **Debt Management Plan (DMP)**: A structured repayment plan set up by a credit counseling agency.
18. **Debt Settlement**: Negotiating with creditors to reduce the total amount of debt owed.
19. **Delinquency**: Failure to make payments on time.
20. **Discharge**: The release of a debtor from the obligation to repay a debt, typically through bankruptcy.
21. **Dispute**: A challenge to the accuracy of an item on a credit report.
22. **Equifax**: One of the three major credit bureaus in the U.S.
23. **Experian**: One of the three major credit bureaus in the U.S.
24. **Fair Credit Reporting Act (FCRA)**: A federal law that promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies.
25. **Fair Debt Collection Practices Act (FDCPA)**: A federal law that limits the behavior of third-party debt collectors.
26. **FICO Score**: A credit score model developed by Fair Isaac Corporation.
27. **Fraud Alert**: A notice placed on a credit report to warn lenders of potential identity theft.
28. **Goodwill Adjustment**: A creditor’s removal of a negative item from a credit report as a gesture of goodwill.
29. **Hard Inquiry**: A credit check by a lender that can affect your credit score.
30. **Identity Theft**: The fraudulent use of someone else’s personal information.
31. **Installment Loan**: A loan repaid over time with a set number of scheduled payments.
32. **Inquiry**: A request for a credit report, which can be hard (affects credit score) or soft (does not affect credit score).
33. **Late Payment**: A payment made after the due date.
34. **Lender**: An entity that lends money.
35. **Line of Credit**: An arrangement allowing the borrower to draw funds up to a specified limit.
36. **Negative Information**: Any derogatory marks on a credit report.
37. **Original Creditor**: The initial lender or service provider to whom the debt was owed.
38. **Payment History**: A record of a consumer’s payments on credit accounts.
39. **Personal Identification Number (PIN)**: A secure code used for verifying identity.
40. **Public Records**: Legal documents such as bankruptcies or tax liens that can affect credit.
41. **Re-aging**: The process of making an account current, thus removing its past-due status.
42. **Revolving Credit**: Credit that can be used repeatedly up to a limit as long as the account is open.
43. **Secured Credit Card**: A credit card backed by a cash deposit from the cardholder.
44. **Soft Inquiry**: A credit check that does not affect your credit score.
45. **Statute of Limitations**: The time period in which a creditor can sue to collect a debt.
46. **Tax Lien**: A legal claim by the government on assets for unpaid taxes.
47. **TransUnion**: One of the three major credit bureaus in the U.S.
48. **Unsecured Debt**: Debt not backed by collateral.
49. **Utilization Ratio**: The amount of credit used compared to the total available credit.
50. **VantageScore**: A credit scoring model developed by the three major credit bureaus.
51. **Voluntary Surrender**: Returning property to a creditor to settle a debt.
52. **Wage Garnishment**: A court order to deduct money from a debtor’s wages to pay off debt.
53. **Write-Off**: When a creditor counts a debt as a loss.
54. **Zero Balance**: A balance of zero on a credit account.
55. **Zombie Debt**: Old debt that a debt collector tries to collect, often past the statute of limitations.

This glossary provides a comprehensive understanding of the key terms used in the credit repair industry.