Question 1

Definition of derogatory credit

Accepted Answer

A derogatory mark means there's a major problem with one of your credit accounts that puts your creditworthiness at risk. Derogatory credit refers to negative information on your credit report that is likely to hurt your credit score. When a lender reports a serious issue, like a very late payment or repossession, to one of the major credit bureaus, a derogatory mark may appear on your credit score. If a derogatory item appears on your credit report, at least one of your accounts may be delinquent. If that negative information seems to indicate that you might not repay your debt, your lender may report your account as derogatory to a credit reporting agency.

Question 2

Can you remove derogatory marks from your credit report?

Accepted Answer

You may not be able to remove an accurate derogatory mark from your credit report if it's been there for less than seven years. But if a derogatory mark is inaccurate or more than seven years old, you may be able to file a dispute with the major credit bureaus that compiled your report or directly with the creditor. If the lender agrees that the derogatory mark is inaccurate or resulted from identity theft or fraud, the credit bureau may remove it from your report. When the derogatory remark is no longer on your report, your credit score may begin to improve. In rare cases, a creditor may remove an accurate derogatory remark if you send them a "goodwill letter" explaining the circumstances that led to your delinquent payment.

What Does Derogatory Credit Mean?

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