What Are “Derogatories” on a Credit Report?
If you’ve been reviewing your credit report and come across the term “derogatory,” you’re not alone in wondering what it means. While the word itself sounds serious—and it is—it doesn’t have to be the end of the road for your credit.
Don’t Let Derogatories Define You
Yes, derogatory marks hurt your credit—but they don’t define you. They’re a snapshot, not your full financial story. With the right strategy, you can move past them and rebuild stronger credit than ever before.
At CreditNerds.com, we specialize in helping people clean up their reports, understand their scores, and get results without charging a dime upfront. Want to learn more? Check out www.CreditNerds.com/FAQ.
Now, in this post, we’ll break down exactly what derogatories are, how they impact your credit score, and what steps you can take to deal with them.
What Does “Derogatory” Mean in Credit?
A derogatory mark (often shortened to just “derogatory”) is a negative item on your credit report that shows you haven’t paid a debt as agreed. It signals to lenders that you may pose a higher risk if they lend to you.
Common types of derogatory marks include:
- Late or missed payments (30 days or more)
- Accounts in collections
- Charge-offs
- Foreclosures
- Repossessions
- Bankruptcy
- Civil judgments
- Tax liens (prior to 2018 – now removed from most credit reports)
These items don’t just appear randomly. They’re the result of actions (or inaction) tied to how you’ve managed credit in the past, but you can change the future!
How Do Derogatories Affect Your Credit Score?
Derogatory marks can significantly lower your credit score, especially if they’re recent. They impact the most important scoring categories:
- Payment history (which makes up 35% of your FICO score)
- Amounts owed
- Length of credit history (if the derogatory item closes a long-standing account)
Here’s a rough idea of how damage can vary:
- One 30-day late payment: Might cause a 60–100 point drop
- Collection account: Can reduce your score by 50–100+ points
- Bankruptcy: May drop your score by 150–200+ points
The good news? The older a derogatory mark gets, the less weight it carries in your score calculation.
How Long Do Derogatory Marks Stay on a Credit Report?
The Fair Credit Reporting Act (FCRA) sets limits on how long negative information can appear on your credit file:
| Derogatory Item | Time on Report |
| Late payments | 7 years |
| Collections | 7 years |
| Charge-offs | 7 years |
| Foreclosures | 7 years |
| Repossessions | 7 years |
| Chapter 13 Bankruptcy | 7 years |
| Chapter 7 Bankruptcy | 10 years |
| Civil Judgments | 7 years |
| Tax Liens (old rule) | 7–10 years |
After this period, they should automatically fall off your credit report.
Can Derogatories Be Removed?
In some cases, yes. Here’s how:
1. Dispute Inaccuracies
If the item is incorrect or shouldn’t be there, you can dispute it with the credit bureaus. CreditNerds.com can help with this—we offer free credit repair and only charge if we successfully get items removed.
2. Request a Goodwill Deletion
If you’ve paid off the account and had a generally good history, you can write the lender a goodwill letter requesting the item’s removal.
3. Negotiate a Pay-for-Delete
Some collection agencies will agree to remove a derogatory item if you pay the account in full (or settle). This doesn’t always work—but it’s worth trying.
What Should You Do If You Have Derogatories?
Here’s a practical roadmap:
- Get a full credit report from all three bureaus (Experian, Equifax, TransUnion).
- Review each derogatory item for accuracy.
- Dispute errors or outdated info through the proper channels.
- Keep making on-time payments moving forward.
- Work with a credit expert to create a plan for removal or recovery.
Ready to Take the First Step?
👉 Set Up Your Free Consultation at CreditNerds.com/Start!
