Derogatory Information
Definition of 'Derogatory Information'Information on a person's credit report that can be legally used to turn down a loan application; it includes late payments, charge-offs and bankruptcies. As a general rule, derogatory information remains on a person's credit report for seven years; but there are exceptions, including bankruptcies, which can remain for 10 years. |
|
Investopedia explains 'Derogatory Information'Various federal laws and statutes protect consumers from unfair denial of credit. Under the Equal Credit Opportunity Act, credit applications cannot ask applicants their sex, race, color, religious affiliation or national origin. Creditors can ask applicants how old they are for certain purposes; however, they cannot use age to deny credit to applicants older than 62. Under the Fair Credit Reporting Act, consumers have the right to review their credit reports and have wrong information corrected. Disputed information that cannot be verified must be deleted from the person's credit report. |
Related Definitions
Articles Of Interest
-
What's On A Consumer Credit Report?
A look at the various components and considerations that go into one's credit report and credit score. -
The Importance Of Your Credit Rating
A great starting point for learning what a credit score is, how it is calculated and why it is so important. -
Check Your Credit Report
Make sure there are no errors holding you back from obtaining a loan. -
5 Steps To Scoring A Mortgage
Find out what you can do to polish up some of the common flaws that put off lenders. -
The History Of Consumer Credit Rights
The Fair Credit Billing Act of 1974 gave consumers the power to dispute credit card charges. -
A Guide To Debt Settlement
Find out how you can negotiate your way to a lower debt load by paying up front. -
What is the difference between a credit report and a credit score?
Your credit report is almost like a report card for your debt history. It shows your personal information, including name and address. It also lists all your creditors with current balances, ... -
Does paying my utility bills on time improve my credit score?
The bad news for consumers is that, typically, utility bills only appear on a credit report when they're delinquent. In most states, providers aren't obligated to regularly report payment histories ... -
Unexpected Things That Lower Your Credit Score
Learn how to avoid these lesser-known mistakes that could harm your credit score. -
Things You Didn't Know About Background Checks
Employers may look into more than you might think before deciding whether or not to hire you.
Free Annual Reports