What is a derogatory?

[eddymvp]

How bad can it hurt your score if you have one in your report?

[Anonymous]

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eddymvp wrote:
How bad can it hurt your score if you have one in your report?

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A derogatory account is any account with baddies associated with it, like late payments, collections, public records, charge offs, etc.

A major derogatory is any collection, charge off, public record, or 90+ late.

Any major derogatory hurts very badly, but their negative effects lessen as they get older.

Lesser derogs, like 30-day lates, also hurt, but their effect lessens much more quickly than major derogs.

[Anonymous]

Well put Cheddar.

[Anonymous]

Thanks, Syl.

Message Edited by cheddar on 04-14-2008 10:01 AM

[Anonymous]

I'm a bit confused. It seems to be that different companies that offer CR to consumers format and filter the credit report in different and inconsistent ways.

For example, I have two 30 day LP (one each on 2 different accounts), plus one auto loan that was paid by insurance. (As an aside, I don't understand why "paid by insurance" makes the account derogatory - the lender got their money and I proved I was a responsible borrower by carrying adequate insurance to cover the vehicle/loan - maybe the insurance company did something underhanded like negotiated with the lender to pay less than the amount owed?)

Anyway, on the TU CR that I got via TC, in the "summary" section at the top, it lists "Derogatory: 1", and the auto loan is the only one listed in this report with "Condition: Derogatory". The 2 accounts with the 30 day LP (and all other accounts, for that matter) list "Condition: Open" and "Condition: Closed" (one of each).

On the TU report that I got directly from TU after I disputed some items, it doesn't have a "summary" section like the, but instead lists the "Adverse Accounts" first, and here all 3 accounts are listed, but there is no use of the word "derogatory" anywhere.

Thanks,
Bob

[Anonymous]

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BobSki778 wrote:
I'm a bit confused. It seems to be that different companies that offer CR to consumers format and filter the credit report in different and inconsistent ways.

For example, I have two 30 day LP (one each on 2 different accounts), plus one auto loan that was paid by insurance. (As an aside, I don't understand why "paid by insurance" makes the account derogatory - the lender got their money and I proved I was a responsible borrower by carrying adequate insurance to cover the vehicle/loan - maybe the insurance company did something underhanded like negotiated with the lender to pay less than the amount owed?)

Anyway, on the TU CR that I got via TC, in the "summary" section at the top, it lists "Derogatory: 1", and the auto loan is the only one listed in this report with "Condition: Derogatory". The 2 accounts with the 30 day LP (and all other accounts, for that matter) list "Condition: Open" and "Condition: Closed" (one of each).

On the TU report that I got directly from TU after I disputed some items, it doesn't have a "summary" section like the, but instead lists the "Adverse Accounts" first, and here all 3 accounts are listed, but there is no use of the word "derogatory" anywhere.

Thanks,
Bob

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The TC report most likely is using the term derogatory to describe what I referred to as a major derogatory above.  30-day lates are baddies, but are not considered major derogs.