Derogatory Marks on My Credit Report

Derogatory marks are negative entries on your credit report. These entries signal to lenders that you might be a risky borrower. They can significantly impact your ability to secure loans or get favorable interest rates.


Let’s break down what these marks are, how they affect you, and what you can do about them.

How Do Derogatory Marks Impact My Credit Score?
Derogatory marks can lower your credit score. The severity of the impact of this negative item depends on the type of mark and your credit score before the mark appears.


For instance, a bankruptcy filing will hurt your score more than a late payment. Also, a derogatory mark can impact a high credit score more than a low one. 


The impact of older derogatory marks on a credit report decreases over time.

Different Types of Derogatory Marks 

Negative marks on your credit report don’t disappear overnight. Derogatory marks can remain on your credit report for several years. 


There are several types of derogatory marks you might see on your credit report. Each one signals a different kind of financial challenge.


Here are the most common ones:

  • Late Payments:A late payment is typically when you’re 30 days or more past the due date. Even one late payment can significantly lower your credit score.

  • Charge-offs:When you haven't paid a debt for a long time, the creditor may "charge it off." This means they've written it off as a loss, and while you still owe the debt, this mark remains on your report for seven years. The account may be sent to collections in the next stage.

  • Collections:If a creditor sells your debt to a collection agency, it becomes a collection account and appears as such on your credit report. This is a serious negative mark that can hurt your credit score and stay for seven years.

  • Repossessions:If you fail to make payments on a secured loan, the lender can seize the asset, like a car, an apartment, or a television. This mark can stay on your report for seven years.

  • Foreclosures: This happens when you can't keep up with mortgage payments and lose your property. Foreclosures can stay on your credit report for seven years from the date of filing.

  • Bankruptcies: It is a court proceeding. Its purpose is to discharge an individual’s debt and auction their assets. A Chapter 13 bankruptcy filing stays on your report for seven years, while a Chapter 7 bankruptcy can remain for 10 years.

Can I Raise My Credit Score While Derogatory Marks Remain on My Credit Report?


Having derogatory marks doesn’t mean you’re stuck with bad credit forever. You can take steps to improve your score. Here's a breakdown of what you can do for each type of derogatory mark:

  • Late Payments: Pay off the full debt as soon as possible. Request the creditor to drop the negative mark (and late fee), especially if it’s your first time being late. Stay on top of other payments to show you are a responsible borrower.

  • Charge-offs: Pay off the debt or negotiate a settlement. While it may not remove the mark, it prevents further legal action and demonstrates that you are taking decisive steps to resolve the debt.

  • Collections: Pay off the collection after verifying that the agency owns the debt. This will not remove the mark, but it helps prevent legal action.

  • Repossessions: Ask the lender if they will remove the item if you pay the debt in full. Also, continue to pay other bills on time. This approach will help you build positive credit and reduce the negative impact over time.

  • Foreclosures: Keep your other credit accounts open and make payments on time. This will help to build up positive credit.

  • Bankruptcies: Begin to rebuild credit with credit builder loans or credit cards for lower credit. Making timely payments will show you are a responsible borrower.

How Can I Remove Derogatory Marks?

If you find an inaccurate derogatory mark, you can challenge it and get it removed.

  • Request and Review Your Credit Report:Obtain your credit report from all three major credit bureaus: Equifax, Experian, and TransUnion. Check for errors like accounts you don't recognize or incorrect payment dates.

  • Dispute Any Errors:If you see incorrect information, file a dispute with the credit bureau. Include all necessary information and supporting documents. You may also want to contact the original creditor.

  • Follow Up on the Dispute:The credit bureaus must respond within 30 to 45 days. Be sure to respond to any inquiries or requests for additional information.

How Can I Improve My Credit If I Have a Derogatory Item on My Credit Report?

If you have a derogatory item on your credit report, it’s important to address it and take steps to improve your credit. Here’s what you can do:

  • Bring past-due accounts current:Pay any past-due accounts as soon as you can, and always make on-time payments going forward.

  • Pay off outstanding debts:If you have collection accounts, pay them off to improve your score.

  • Pay down high credit card balances: Your credit utilization rate is important, so keep balances low.

  • Focus on risk factors: Monitor your credit reports and identify what factors are hurting your score.

How Can I Get Help With Derogatory Marks?
Reputed credit repair companies like AMERICA CREDIT CARE can help dispute erroneous negative marks and guide you through the process.


You can also dispute negative items on your own, but dedicated credit repair services can help you save time and effort in the long run. 


If you face challenges negotiating with creditors, consider seeking legal help from a consumer protection attorney.

We have many years of experience in evaluating credit and guiding consumers to assert their legal rights. We do it every day! We guarantee honesty and dependability, virtues which most people seem to have forgotten.

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We have many years of experience in evaluating credit and guiding consumers to assert their legal rights. We do it every day! We guarantee honesty and dependability, virtues which most people seem to have forgotten.

Copyright © 2025 America Credit Care. All rights reserved. Powered by WebbArtt Solutions