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Derogatory marks, also known as derogatory credit items, represent negative and sometimes serious aspects of your credit report, including late payments and delinquencies. These marks, coupled with a low credit rating, can make it difficult to get approved for credit or get decent credit terms.
It’s important to know about the different kinds of derogatory marks as they can have a heavy impact on your financial history and your ability to be in good standing with your lenders. Here’s what you need to know about derogatory marks and how they can affect your credit.
Derogatory marks are negative items that indicate you failed to pay a loan or are delinquent on a loan or other debt. They will show up on your credit report and hurt your credit over time. Having a derogatory mark on your credit report is a serious matter, as they show up as a warning to lenders, limiting credit approvals and hurting your credit.
Some derogatory marks are more severe than others. For example, a late payment generally won’t affect your credit as much as a bankruptcy.
There are different types of derogatory marks, and each will typically stay on your credit report for seven years. How you acquire these marks depends on the situation. Take a look at the chart below to see how long each mark stays on your credit report.
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Lynn Corey
Credit Consultant at Credit Masters Alliancein member services assisting members with general credit questions, quickly moved to a position helping members with overdue balances. For the past year Melissa has been a part of the CXRF Team resolving escalated situations and creating a better member experience....
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