What is a Derogatory Mark?

What is a Derogatory Mark?

Derogatory marks are negative records on your credit report that can damage your credit and generally stay on your credit report for seven years or more. They may sound scary, but don't bury your head in the sand. If you have a derogatory mark listed on your credit report, learn more about how these marks work below.

What is a derogatory mark?

A derogatory mark is essentially a long-lasting negative record on your credit report. These marks will likely hurt your ability to qualify for credit or obtain desirable rates, and can typically take seven to ten years to clear from your credit history.

Some examples of especially severe derogatory marks include:

  • Bankruptcy: This generally means that you have entered into a special legal proceeding to request certain forms of relief from your debt obligations. Because it's a drastic step and one of the most damaging negative records you can have on your credit report, it is usually a last resort for addressing overwhelming debt.
  • Foreclosure: This generally relates to situations where you have fallen behind on mortgage loan payments and the lender has undergone a legal process to attempt to force a sale of the home used as collateral for the mortgage loan.
  • Collections: These are accounts that have been reported as sent or sold to a third-party debt collector by the original creditor because of missed payments.
  • Tax lien: Tax liens may occur when you neglect or fail to pay a tax debt on time. It's important to know that unpaid tax liens may remain on your credit report indefinitely.
  • Civil judgment: This information usually relates to civil lawsuits which require the payment of damages (for instance, if you lost a civil case or failed to respond to a lawsuit at all).

What does it mean for my credit?

As the number of derogatory marks you have on your credit report is really important in some credit scoring models, it's best to minimize these marks. Just one derogatory mark can drop your score drastically.

What can I do about derogatory marks on my credit report?

If the derogatory marks on your credit report are accurate, there often isn't much you can do and you should be wary of credit repair companies that claim they can remove this information. The best practice is to keep the rest of your credit in good health and wait for those marks to naturally fall off over time.

As with other erroneous information, if you see a derogatory mark on your credit report that is inaccurate, you can dispute it with the credit bureaus.

Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.

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1 Contribution
308 People Helped

Helpful to 308 out of 335 people

ITS AMAZING HOW FAST A DEROGATORY MARK WILL SHOW UP ON THESE REPORTS AT  LIGHT SPEED AS OPPOSED

TO POSITIVE INFORMATION SHOWING UP WEEKS AND WEEKS LATER.

Reply by
ivanapr

2 Contributions
70 People Helped
Helpful to 70 out of 82 people

Enter Your ReplyThe reason the negatives go on your report like "light speed" is because that is how these 
credit reporting agencies make their money.  They pay the creditor for each negative remark they report to them.

TU, EX and Equifax are making money off of everyone's misfortune....it's appalling!  They are privately owned so

let's see I have to pay a "privately owned" company to get my credit report so they can "control" my life.. They

should be run out of business but the government continues to do nothing!  Try complaining to the FTC and see where it gets you .....NOWHERE!  

2 Contributions
160 People Helped

Helpful to 160 out of 187 people

What ever you do... Remember; ONLY GO BY WHAT THE 3 Credit Bureau's are reporting. If you've fixed a "derogatory mark", but it's still showing on a "Credit Site", such as this one, it doesn't mean anything. Example... This site works in unison with TransUnion. But, it isn't TransUnion's "priority", or obligation, to tell C.K.I. what to list, on any given consumer. It's on C.K.I. to do their own job, and attempt to give an accurate view of what the consumer's credit report is saying. *I use the term "attempt" very loosly, here.

Also, if you've been the victim of identity-theft, you'll need to be willing to do the neccessary foot-work, if you want to redeem your credit, back; but by filing, completing, submitting, a notarized affidavit of complaint, with the FTC, along with any proof, &/or a police report (or, an incident report, from the police), it is very possible you can recover. 

When I was first made aware, of my situation, I felt it to be a hopeless-case. It's been one year, and all but one fraudulent account has been reversed. That last account wasn't, even, listed with any of the 3 agencies. It was a CHECKING account, that was opened at a bank, in my name. Therefore, the money-owed to the bank, in my name, was turned over to the Chex System, Inc.. Totally different entity, entirely!! lol!!

Point-being, don't go by what this site tells you, if you know what the bureaus say is fixed. And, if you're a victim, check the banking systems, too. They AREN'T connected, with credit bureas, for whatever reason.

2 Contributions
248 People Helped

Helpful to 150 out of 189 people

Notice it's only on the little guys credit report. Look at all of the big companies and rich people that file, try looking for that information to tarnish their credit. Look at all of the crooked politicians who have embezzlements and sex scandals, there is nothing to tarnish their reputations and if so, they have ways of getting around it. I used to work as a skip tracer, I saw a lot of credit information when time for repossessions. One case that I will never forget was the guy who bought a brand new car with no job, no income, and no credit at all or it was bypassed. After he did not make the first two payments, of course they wanted us to pick it up. My question was how did he get it in the first place?

Reply by
doowoplover534

5 Contributions
199 People Helped
Helpful to 195 out of 246 people

First of all ,how did these credit companies come into being? Whatever happened to our PRIVACY? Where these Bureau's know your every financial move  A disgrace. The system is RIGGED in favor of the rich 1% who own everything .They try to keep your credit rating low so they can charge more interest and make more money.God bless America.  These bureau's were created and exist thanks to SELLOUT politicians. THis should be ILLEGAL and unconstitutional.

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