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Reference Guide

Credit Repair Glossary

credit repair has a lot of jargon. here's what all of it actually means — in plain English, no textbook required.

A
Authorized User

Being added to someone else's credit card account — and inheriting their history — to build your own credit profile.

C
Charge-Off

When a creditor writes a debt off as a loss after 180 days of non-payment. The debt doesn't disappear — it just changes form.

C
Collections

What happens when an unpaid debt gets sold or transferred to a third-party collection agency — one of the biggest score killers.

C
Collection Account

A delinquent debt that has been placed with a collection agency. Understanding how collection accounts are reported is key to disputing them effectively.

C
Credit Bureau

The three companies — Equifax, Experian, and TransUnion — that collect and sell information about how you use credit.

C
Credit Freeze

A free tool that blocks lenders from accessing your credit file — protecting you from identity theft and as a strategic dispute move.

C
Credit Score

A three-digit number (300–850) that summarizes your credit risk. Knowing which factors move it — and how fast — is the foundation of any repair strategy.

C
Credit Utilization

The percentage of your available credit you're using. One of the fastest levers you can pull to move your score.

D
Debt Validation

Your legal right under the FDCPA to demand proof that a collection debt is real, accurate, and actually yours.

D
Dispute Letter

A formal written challenge to inaccurate or unverifiable information on your credit report — the foundation of credit repair.

F
Fair Credit Reporting Act (FCRA)

The federal law that governs your credit report — who can see it, what must be accurate, and how to dispute errors.

F
Fair Debt Collection Practices Act (FDCPA)

The federal law that limits what debt collectors can do — and gives you the right to demand validation of any debt.

F
FICO Score

The most widely used credit scoring model, ranging from 300 to 850. Most lenders pull this before any approval decision.

G
Goodwill Letter

A written request asking a creditor to remove a negative mark as a courtesy — especially useful for isolated late payments.

H
Hard Inquiry vs. Soft Inquiry

Hard inquiries happen when you apply for credit and can ding your score. Soft inquiries don't affect your score at all.

M
Metro 2 Compliance

The industry-standard data format lenders use to report to bureaus. Errors in this reporting create powerful dispute angles.

S
Statute of Limitations

The time window during which a creditor can sue you for a debt — separate from how long it stays on your credit report.

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