Derogatory Information

AAA

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 TERMS
  1. Charge-Off

    A term describing an expense on a company's income statement. ...
  2. Credit

    1. A contractual agreement in which a borrower receives something ...
  3. Credit Card

    A card issued by a financial company giving the holder an option ...
  4. Credit Report

    A detailed report of an individual's credit history prepared ...
  5. Credit Score

    A statistically derived numeric expression of a person's creditworthiness ...
  6. Credit Card Authorized User

    Definition of an authorized user of a credit card.
Related Articles
  1. What's On A Consumer Credit Report? ...
    Credit & Loans

    What's On A Consumer Credit Report? ...

  2. The Importance Of Your Credit Rating
    Credit & Loans

    The Importance Of Your Credit Rating

  3. Check Your Credit Report
    Credit & Loans

    Check Your Credit Report

  4. 5 Steps To Scoring A Mortgage
    Home & Auto

    5 Steps To Scoring A Mortgage

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center