Definition of Derogatory information:
Derogatory information is negative information on a person's credit report which can be legally used to turn down a loan application. Derogatory information can refer to a variety of items reported to the credit bureaus from credit card companies, lending institutions, and mortgage providers..
An information in a credit report which lenders may legally use to justify refusal of a loan request. Derogatory information includes records of late loan payments, bankruptcies or charged off loans and it remains on record for seven years and in case of bankruptcy, ten years. Such information lowers credit score and impairs a persons ability to receive credit.
Derogatory information is any reported credit information that can be used to deny an individual a loan legally. As a general rule, derogatory information remains on a person's credit report for seven years. However, there are exceptions, including bankruptcies, after which derogatory information may remain for ten years.
How to use Derogatory information in a sentence?
- Derogatory information is any reported credit information which can be used to deny an individual a loan legally.
- The most common form of derogatory information is late payments.
Meaning of Derogatory information & Derogatory information Definition