Derogatory marks are negative items on your credit report. They serve as red flags for potential lenders.
Derogatory marks are records of events (such as times when you failed to pay one of your bills on time) that show you’ve had trouble managing your debts. They suggest that you may have similar difficulties in the future, which will make lenders reluctant to extend credit to you.
Derogatory information is usually provided by your creditors (e.g., credit card companies and loan providers), debt collection agencies, or public records.
Most derogatory marks stay on your credit report for 7 years and will be automatically removed after that period. However, the exact amount of time a derogatory mark will remain on your credit report depends on what type of mark it is.