Sometimes credit reports can be very confusing, especially when you worked so hard to make up-to-date payments and your credit score doesn’t budge by much. Derogatory marks show up on your report every time you undergo a negative financial event.
This can range anywhere from a missed payment to a more serious situation, such as bankruptcy. Often, they are reflective of serious delinquencies you’ve experienced. However, every derogatory mark has an expiration period. There are other ways to improve your credit score by working to remove or dispute derogatory marks.
You can consult with a dedicated team who can help you take care of derogatory marks on your credit history. Our representatives understand how credit systems work. Contact My Credit Repair Clinic now.
How To Manage Derogatory Marks On Your Credit
When you are dealing with derogatory marks, it can be complicated and often confusing due to all the factors that come into play. You can take a variety of approaches to remove these marks and recover an excellent credit score.
What Are Derogatory Marks?
A derogatory mark is a negative item on your credit history that reflects an action you took that didn’t meet the demands of your creditors. This includes collections, foreclosure, repossession, bankruptcy, missed payments, and more.
When you have derogatory marks listed on your account, this can reduce your potential to receive new credit cards and loans. These marks may stay on your account for many years, the maximum being ten years. If too many appear on your credit history, your score can drop by many points and remain in the poor category. This could prevent you from qualifying for new credit accounts.
Derogatory Marks By Level of Severity
Despite the differences between the types of negative events which trigger a derogatory mark, all of them tend to remain for seven years on your credit history. However, not all derogatory events are created equally. A bankruptcy is considered one of the most severe derogatory marks compared to other credit delinquencies.
Late Payments
When your payment is past due on your account, this results in a minor derogatory mark. This severity increases every 30 days it hasn’t been paid. It can remain on your credit report for seven years if you don’t repay it within a month from the time it became delinquent.
Account Collections Charge-Off
A creditor may write up a charge off if you have several missed payments. This means that they believe you won’t pay back what you owe and will sell this amount to a third-party collections agency. This will appear on your credit report for seven years after the first date of your delinquent payment.
Debt Settlement
This settlement is when you and a creditor have agreed on debt repayment. The mark will remain for seven years from the date that you settled the debt from the first day your payment became delinquent. This will depend on the number of missed payments.
Civil Judgment
When you lose a civil lawsuit and need to pay damages, this may appear on your credit report. The paid civil judgment will remain for seven years, starting from the day the decision was filed. If the civil judgment is unpaid, this seven-year-period may be renewed again.
Tax Lien
When you do not pay your taxes, the federal government will place a lien on you to reclaim the amount you owe. The paid tax lien may remain seven years from the date that you file it. Any unpaid tax lien will remain on your credit report for an indefinite amount of time.
Foreclosure
This will only occur if you fall behind on your mortgage payments for too many months. If you don’t explore foreclosure options, the bank will force your house to be sold and will use your home as collateral. This remains on your credit report for seven years.
Bankruptcy
This is the highest severity of derogatory marks and can last anywhere between seven to ten years from the date that you filed the bankruptcy. It is a legal proceeding that removes your debt or helps you establish a repayment plan.
How To Dispute Inaccurate Information
There are three ways you can dispute items on your credit report. You can achieve this either through Equifax or TransUnion. You can do this online through the dispute centers at no additional cost. Another avenue is by phone, where you can call either the Equifax or TransUnion phone number. Lastly, you can dispute by mail using either of their mailing addresses.
Remove Derogatory Marks With Professional Help
You can obtain professional help from an experienced team who can help you go through the dispute process with fewer errors. You can review your credit history with intelligent professionals and point out the items that you want to dispute. They can explain the reason why you should or shouldn’t go through with the dispute before you take action.
After a consultation, they will either file the dispute for you or guide you through the dispute process. There will be updates, and additional information may be requested, but the representatives will help keep you up-to-date on the claim’s progress. With the dispute, any incorrect information may be fixed and fake details that are not legitimate may be removed. The only information that will stay on your credit report is verifiable.
Find Out More On Removing Derogatory Marks
You may have more questions about your credit report that you need help with. If you have several items you’d like to remove, you can get advice from a diligent team who can inform you about solutions. Call My Credit Repair Clinic today to get started.