3. Derogatory Marks
Derogatory marks are negative records on your credit report that can damage your credit and generally stay on your credit report for seven years or more. This is a high impact to your score. These marks will likely hurt your ability to qualify for credit or obtain desirable rates. Some examples of derogatory marks include, bankruptcy, foreclosure, collections, tax lien, civil judgment.
Another good reason to check your credit score often is sometimes these marks are sneaky. You can have a bill go into collections that you weren’t even aware of. It could be an old electric bill from when you moved or doctor bill from when you were 18 that you had completely forgot about. Check your derogatory remarks, if there is something there you do not recognize or you are sure you have paid off. Do your research on disputing these marks. If the marks on your credit score are accurate, there often isn’t much can do you should be wary of credit repair companies that claim they can remove this information. It is possible to try and negotiate with your creditors to remove derogatory items from your credit report once repaid them the debt. Generally, the best practice is to keep the rest of your credit in good health and wait for those marks to naturally fall off over time.