Credit Advice » Report Advice » Report Details » Negative Information » What “Derogatory” Means in a Credit Report

What “Derogatory” Means in a Credit Report

Dear Experian,

I have something showing on my credit report called derogatory. Can you please explain to me what that means?

– WDS

Dear WDS,

A derogatory item is considered negative, and typically indicates a serious delinquency or late payments. Derogatory items represent credit risk to lenders, and therefore, are likely to have a substantial effect on your ability to obtain new credit.

Public record items, such as bankruptcies, tax liens, and judgments also are considered derogatory. Other examples of derogatory credit items include collection accounts, charge-offs, and accounts that are settled for less than the full balance.

While some lenders still may be willing to extend credit to someone with derogatory items on their report, they may do so with less than favorable terms, such as higher interest rates or fees.

Thanks for asking.
The “Ask Experian” team

Review Your Free Experian Credit Report Today

Good credit begins with knowing where your credit is today. Get started with your free Experian Credit Report, updated every 30 days on sign in. No credit card required.

Get Started for Free
Have a Question for Experian?

Your privacy and the information collected here.

Get Your Free Credit Report

View your free Experian Credit Report every 30 days on sign in.

No credit card required.

Get Started for Free

What Should You Know About the Dark Web?

Learn more about what the dark web is, and why it should matter to you as a part of your identity protection strategy.