Derogatory information on your credit report can take a number of different forms. This type of information is the same as having bad credit. Your credit score can be affected negatively by derogatory information. Derogatory credit can be collections and public records.
Effects
If you are late with your payments on a credit account, this can show up on your credit report. When your payments are 30, 60 or 90 days late or longer, this is considered derogatory credit information.
Considerations
When you dont pay a debt, a creditor can file a lawsuit and get a judgment against you. A judgment is considered derogatory information and it can remain on your credit file for seven years.
Significance
Derogatory information on your credit report can lower your credit score. When your credit score is lowered, your ability to receive credit in the future will be impaired.
Warning
A bankruptcy is considered derogatory credit information as well. If you file a petition for bankruptcy, a credit score of 780 can be lowered anywhere from 220 to 240 points, according to CreditCards.com.
Benefits
Any derogatory information remaining on your credit file longer than seven years can be disputed with the credit reporting agency that has the information on file.
Expert Insight
A foreclosure is also considered derogatory information and remains on your credit file for seven years, as well. According to CreditCards.com, a foreclosure can lower a credit score of 780 by 140 to 160 points.
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