Credit Repair Glossary

• Fair Credit Billing Act

  The Fair Credit Billing Act (or “FCBA”) is a U.S. Federal Law that governs credit accounts (such as credit cards, overdraft protection lines of credit, etc.) and revolving accounts (otherwise known as “store cards” or “private label credit cards”). 

• Fair Credit Reporting Act

  The Fair Credit Reporting Act is a U.S. Federal law that governs (among other things) what credit bureaus can report and for how long. It outlines procedures for correcting errors in credit reports. It requires credit bureaus to furnish copies of consumers’ credit reports at their request.

• Fair Isaac

  Fair Isaac (sometimes mistakenly referred to as “Fair Isaacs”) is the company that invented the FICO® credit score that most American lenders use. Fair Isaac was started in the 1960’s, and introduced credit scoring algorithms to the U.S.  Fair Isaac’s FICO credit score is a de-facto standard in the U.S. financial services industry. 

• Fake-O Credit Score

  The term “Fake-O” credit score (or FAKO credit score) is sometimes used by folks “in the know” to refer to the “PLUS Score” available from Experian.  The PLUS Score is unique to Experian (and often comes with their credit reports).  Unfortunately, it’s not the score you should base your credit on (because lenders don’t use it).  The score you need to refer to is the “FICO” score.  Experian admits that the PLUS Score is a “consumer-focused credit score” and “was created in response to the need for U.S. consumers to improve their knowledge of credit.” This quote from Experian sums it up: “The PLUS Score is derived from information based on a credit report, using a similar formula to those used by lenders.”  It’s called “Fake-O” because it’s not a real “FICO” score.