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Glossary

Plain-English definitions for the terms that show up on credit reports, in dispute correspondence, and in our help articles.

Credit-report terms

Account in good standing. A line that's open, current, and not delinquent. Closed accounts can also be "in good standing" if they were never delinquent before closing.

Authorized user (AU). Someone added to another person's account who can use it but isn't legally responsible for the debt. The account reports on the AU's report. See authorized user tradelines.

Charge-off. A debt the original creditor has written off as a loss after roughly 180 days of non-payment. The status stays for 7 years from the date of first delinquency, paid or not.

Collection. A debt sold or assigned to a collection agency. The collection appears as a separate line from the original charge-off, even though it's the same debt.

Date of first delinquency (DOFD). The first missed payment that led to the eventual delinquency. Under FCRA §605(c), the 7-year reporting window starts here — not from the charge-off date or the collection-assignment date.

Derogatory mark. Catch-all for any negative entry: late payments, collections, charge-offs, public records, repossessions.

Hard inquiry. A pull tied to a credit application. Stays on the report for 24 months and affects scores for 12. See hard inquiries disputes.

Soft inquiry. A pull where you weren't applying for credit (pre-approval offers, your own pulls, employer checks). Doesn't affect score and doesn't show on third-party reports.

Tradeline. A single account on your credit report — a credit card, a loan, a collection. Each has its own balance, status, and history grid.

Letter and dispute terms

ACDV. Automated Consumer Dispute Verification. The brief data packet bureaus send to furnishers via the e-OSCAR system asking them to confirm or deny a disputed item.

e-OSCAR. The electronic system the credit bureaus use to route online disputes to furnishers. See why you mail the letters.

Furnisher. The entity that reports your account to the bureaus — your credit card issuer, lender, or a debt collector.

Goodwill letter. A letter asking a furnisher to remove a legitimate-but-isolated negative entry as a courtesy. Not a dispute.

Method of verification (MOV). A request under FCRA §611(a)(7) asking the bureau to disclose how it verified a disputed item — what documents, which person, which procedures.

Reinsertion. The bureau adds back a previously deleted item. Under FCRA §611(a)(5)(B), the bureau must notify you in writing within 5 business days.

Validation (debt). A request under FDCPA §809 asking a collector to prove the debt is yours, in the amount claimed, and that they have the right to collect it.

Statutes

FCRA. Fair Credit Reporting Act (15 U.S.C. §1681 et seq.) — governs what bureaus and furnishers can do with consumer credit data. See FCRA basics.

FDCPA. Fair Debt Collection Practices Act (15 U.S.C. §1692 et seq.) — governs how collectors can pursue debts. See FDCPA basics.

CROA. Credit Repair Organizations Act (15 U.S.C. §1679 et seq.) — governs companies that charge consumers to repair their credit. See CROA and software.

Reg V. Regulation V — the CFPB regulation implementing the FCRA.

Permissible purpose. The FCRA §604 list of legitimate reasons a party can pull your credit report. See hard inquiries disputes.

Tax and fraud

1099-C. A "Cancellation of Debt" form. If a creditor forgives $600+ of debt, the IRS treats it as taxable income and the creditor issues a 1099-C. Receiving one doesn't remove the line from your report on its own.

Identity theft block. A removal under FCRA §605B based on a documented identity-theft report (filed at identitytheft.gov). The bureau must block the items within 4 business days of receipt.

Mixed file. When two people's credit data ends up on one report because of similar identifying information — same name, same address, same date-of-birth pieces. See mixed file and merged files.

Last updated 11 days ago.