Glossary of Credit Terms (E – F)

Here are definitions of key terms and phrases common to the credit reports and scores. Refer back to this glossary when you come across any jargon that leaves you puzzled.

To fast forward to a particular section of this glossary of credit terms, just click on a letter below for terms beginning with:

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Acronyms & Abbreviations

E

ECOA
See Equal Credit Opportunity Act

Empirica
The brand name TransUnion credit bureau is using for their version of Fico credit score (See ../beacon-credit-score// for more information)

End User
The business that receives the report for decision making purposes that meet the permissible purpose requirements of the FACT Act.

Equal Credit Opportunity Act (ECOA)
Federal law  which prohibits creditors from discriminating against credit applicants on the basis of sex, marital status, race, color, religion, age, and/or receipt of public assistance.
See ../credit-applications-know-your-rights/ for more information.

Equifax
One of the 3 major credit bureaus. Headquartered in Atlanta, Georgia. The other two national credit reporting agencies are Experian and TransUnion.

EQ
An acronym to Equifax Credit Bureau.

Experian
One of the 3 major credit bureaus. Headquarters in Costa Mesa, California, and Nottingham, UK. The other two national reporting agencies are Equifax and TransUnion.

EX
An acronym to Experian Credit Bureau.

Extended Fraud Alert
A type of Fraud Alert that stays on your credit files for 7-1/2 years. See ../credit-fraud-alert/ for more information.

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Acronyms & Abbreviations

F

FACT Act
See Fair and Accurate Credit Transactions Act

Fair and Accurate Credit Transactions Act (FACT Act)
An amended to the Fair Credit Reporting Act (FCRA) that was signed into law in December 2003. It incorporates new privacy regulations, dispute procedures and identity theft protection and the distribution of free annual consumer disclosures. See ../fcra-credit-report/ for more information.

Fair Credit and Charge Card Disclosure Act
Amendments to the Truth In Lending Act that require the disclosure of the costs involved in credit card plans that are offered by mail, telephone or applications distributed to the general public.

Fair Credit Building Act
Federal legislation that provides a specific error resolution procedure to protect credit card customers from making payments on inaccurate billings.

Fair Credit Reporting Act (FCRA)
A law that establishes consumer rights in regards to credit reports. The FCRA governs credit report agencies (credit bureaus) and protect consumers by limiting the purposes for which credit checks can be performed, ensuring that consumers have the right to view their credit files, and providing consumers with the right to correct errors in their credit reports. It was amended by the Fair and Accurate Credit Transactions Act (FACT Act). See ../fcra-credit-report/ for more information.

Fair Debt Collection Practice Act (FDCPA)
Federal legislation prohibiting abusive and unfair debt collection practices.

Fair Isaac
The company that invented the FICO credit score. FICO stands for Fair Isaac Corporation. See ../fico-score-rating/ for more information.

FDCPA
See Fair Debt Collection Practice Act

Federal Trade Commission (FTC)
The U.S. Government agency responsible for regulating the credit report agencies. The FTC actively educates consumers on how to improve credit scores and how to avoid identity theft. The FTC maintains a database of identity theft complaints.

FICA
An old credit score, developed by TRW (now Experian) credit bureau. Abandoned in favor of FICO.

FICO
FICO stands for Fair Isaac Corporation. It is a brand name for a Credit Score. FICO credit score dominates the market, with over 90% of creditors & lenders using it.

FICO Advanced Risk Score
The brand name Experian credit bureau is using for their version of FICO 08 (the new version of FICO).

FICO II
See FICO 08

FICO 08
The latest version of FICO credit score. It was introduced on January 2009 by Fair Isaac, and is claimed to better predict the likelihood that consumers will repay their credit bills. See ../fico-08/ for more information.

Common Synonyms: Fico8, Fico08, NextGen Fico, Fico II

Finance Charge
Amount of interest. Finance charges are usually included in the monthly payment total.

Fixed Rate
An annual percentage rate that does not change.

Foreclosure
A legal proceeding, in which the bank can take possession of and sell a mortgaged property when the borrower does not meet his/her contractual obligations, e.g. is delinquent on payments.

Fraud Alert   
A warning attached to your credit files, to notify potential lenders they should take steps to verify your identity before granting new credit in your name. This helps to prevent financial identity theft.

There are three types of Fraud Alerts: Initial Fraud Alert that last for 90 days and can be extended, Extended Fraud Alert that stays on your credit files for 7-1/2 years and Active Duty Alert that last for 1 year and can be extended. See ../credit-fraud-alert/ for more information

FTC
See Federal Trade Commission

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Acronyms & Abbreviations