Free Credit Repair Advice: Definitions You Need to Know
A Credit Article Contributed by Brandie King
Free Credit Repair Advice: Definitions You Need to Know
There aren't many articles available on free credit repair advice that define the "credit lingo" they use. Below you will find definitions of some words you might have heard when trying to find information on repairing your credit. Now, when looking for free credit repair advice, you will understand what is being talked about.
Free Credit Repair Advice: Definitions - Set 1
Bankruptcy - Chapter 7 concerns court proceedings where your unprotected assets are sold and distributed to pay your creditors. Chapter 13 gives you an prolonged time to repay all or part of your debts. You are allowed to keep your assets. Once you have filed bankruptcy, foreclosures, garnishments, repossessions, utility cut-offs and debt collection activities are ordered to stop by the court.
Budget - A detailed plan of what you expect to spend and earn over a certain period of time. Can provide a framework for managing future investments and expenses.
Free Credit Repair Advice: Definitions - Set 2
Credit Bureau/Credit Reporting Agency - Company that gathers information about your credit for use by prospective creditors, employers and others who may legally request information about your credit worthiness. They obtain this information from credit repositories as well as other sources. The three credit bureaus are Experian, Equifax, and Trans Union.
Credit History/Credit Report - A record of how you have paid credit accounts in the past. This report is used to analyze whether or not you are likely to pay accounts you obtain in the future on time and may be used by prospective creditors or employers.
Creditor - A person that you own money to
Credit Repository - A company that gathers, records, updates, and stores financial and public records information about payment records of people who are being considered for credit.
Free Credit Repair Advice: Definitions - Set 3
Dispute - To question the accuracy of information on a credit report. Equifax, Experian, and Trans Union all now have features on their websites that allow you to handle disputes online.
Fair Credit Reporting Act (1971; amended in 1997) - A federal law that grants consumers the following rights: 1. to learn what credit bureaus have on file about them, 2. to to dispute any errors in the information, and 3. to obtain a copy of their report at no charge if they have been turned down for credit. The law also states permissible purposes that credit reports may be requested for.
Permissible Purposes - These are defined in Section 604 of the Fair Credit Reporting Act. Only very specific reasons for requesting a credit report are deemed "permissible." Any requests that are made and do not meet this criteria must be denied.
Public Record - Your public records include things such as state or federal tax liens, bankruptcy filings, judgments against you in civil actions, and criminal records. They are open to anybody who requests access to them.
Secured Credit Card - Credit card that is secured by a savings account. Obtaining this type of card can allow you to start building a positive credit history.
