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Houston Mortgage > Glossary >
Credit reports and Credit scores > F 1-10
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Fair Credit Reporting Act
A federal law that governs 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.
FICO scores
The most commonly used credit score. The name comes from the Fair Isaac Corporation, which developed the scoring model. They are used to predict the likelihood that a person will pay his or her debts. The scores use only information from credit reports.
Fraud alert
A notation on a consumer's credit report that tells creditors and other third parties that the consumer may have been a victim of fraud or identity theft. It asks the credit issuer to take additional verification steps before granting credit, such as contacting the consumer at a specified phone number. Policies regarding fraud alerts vary by credit issuer, and can include calling the consumer, asking the applicant for additional proofs of identity or simply denying the application. Any consumer may raise a fraud alert for free by contacting Experian, TransUnion or Equifax. The credit-reporting agency contacted should forward the fraud alert to the other two. Initial fraud alerts expire after 90 days, but can be renewed. Seven-year fraud alerts require a copy of a valid identity theft report filed with law enforcement. Those on active duty may request an active duty alert, which expires after one year.
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