The Fair Credit Reporting Act is a United States federal law that regulates the collection, dissemination, and use of consumer information, including consumer credit information. Along with the Fair Debt Collection Practices Act (FDCPA), it forms the base of consumer credit rights in the United States.

A debt that is considered settled in return for a negotiated payment amount less than the actual balance of the debt. In these scenarios, the borrower is already very delinquent on the account. Lenders will generally try to negotiate a settlement amount prior to considering the debt a total loss and selling it to a collection company.

An account that is settled is technically less derogatory than one that was a charge-off. However, both items are seen as negative in the eyes of a potential lender.

A method of borrowing in which a homeowner may borrow against their home’s equity as needed using a checkbook or credit card. It differs from a standard loan in that the borrowing may be done over a period of time, as needed, preventing excess borrowing and limiting interest costs.