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What Does “Key Derogatory” Mean?

Dear Experian,

What does “KD” mean, and how long does it stay on your record before being deleted?

– BBN

Dear BBN,

“KD” stands for “key derogatory.” Experian does not use this term in their credit reports, but it is sometimes used in reports obtained from other sources.

“Derogatory” is the term used to describe negative information that is very late, usually more than 180 days.  An item that is listed as a “key derogatory” is one that shows serious delinquency and is likely to have a substantially negative effect on credit scores.

Examples of derogatory accounts include collections, charge-offs, foreclosures and repossessions. Settling a debt and not paying it in full as originally agreed is a serious negative issue and would therefore be described as derogatory as well.

Public record items such as bankruptcy, tax liens, and judgments are also considered derogatory.

Accounts that are less than 180 days late are referred to as “delinquent.”

Both delinquent accounts and derogatory accounts will lower credit scores and hurt your ability to qualify for credit or other services.

Thanks for asking.
The “Ask Experian” team