What does “derogatory” mean when it shows up on my credit reports?
The term “derogatory” means the information is negative and will likely hurt your ability to qualify for credit or other services.
Most commonly it refers to late payments, but also includes other information that indicates credit risk. Settling a debt and not paying it in full as originally agreed is a serious negative issue and would therefore be described as derogatory, for example.
Things like collection accounts, foreclosures, bankruptcy, tax liens and civil judgments are also considered derogatory.
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– The “Ask Experian” team