Credit glossary
Derogatory mark
Any seriously negative item on a credit report, such as a 90-day late, charge-off, collection, repossession, foreclosure or bankruptcy.
There's no single legal definition, but lenders and score reason statements lean on the idea; a derogatory public record or collection is a common reason code. Most derogatory items can be reported for seven years under the FCRA, with charge-offs and collections measured from 180 days after the delinquency began, while a bankruptcy can stay up to 10 years.
Their weight fades as they age, and FICO says older problems count less than recent ones. What you control is what comes next: no new late payments, low balances and accurate reporting. A derogatory item that's accurate isn't disputable. One with a wrong date, balance or owner is, and a wrong date can keep it on your report past its legal end.
Guides that go deeper
- How long late payments stay on your credit report, with the date mathLate payments can be reported for up to seven years, and paying the account doesn't shorten that. Which date starts the clock, and how to find yours.
- Credit score reason codes, decoded: what each one is telling youReason codes list what held your score back the most, in order. What the common ones mean, which you can act on, and which to leave alone.
- A 12-month credit rebuild plan when your score is near 500A month-by-month plan for rebuilding credit from around 500: what to do first, what to open, what to leave alone, and what a year can and can't change.
Sources
- 15 U.S.C. 1681c: Requirements relating to information contained in consumer reports, Legal Information Institute, Cornell Law School
- How long does negative information remain on my credit report?, Consumer Financial Protection Bureau
- Payment History and Your FICO Score, myFICO
This is education, not legal or financial advice. Spot an error? Tell us and we'll fix it.