Derogatory Information(Banking) Law and Legal Definition
Derogatory information is information received by a creditor indicating that an applicant has not paid his/ her accounts with other creditors according to those institutions' terms and conditions. Derogatory information can be legally used by a creditor to turn down an applicant’s loan application. Such information includes: bankruptcies, late payments, and charged off loans. Usually, derogatory information remains on a person's credit report for seven years. However, bankruptcy information remains in the report for 10 yeas.
