What does key derogatory mean on a credit report?

Posts: 3
Credits: 4656.5

What does Key Derogatory mean on a credit report?

Posts: 1
Credits: 130

Sub: #1 Late reporting, and more...
Sat, 06/09/2012 - 14:49

I have my own questions to ask, but I saw this and as Anna said it is strange that it would be reported very late... Many companies only report to one agency such as Equifax. Then the agencies share information obtained. For instance I received this email from TransUnion today... "Equifax noted a change to your credit report. To find out the details simply click here to login to your account."

This eventually leads to my question :). My credit is very good, but I was in the top 1% (credit wise) three years ago then bought a house in 07 that immediately dropped in value because of a decision by the city. (End result killed our tree of 80+ years old, which was much of the house's value.) I had put thousands into upgrades and in so doing we found that the house's electrical was in dier need of repair, would cost over 10k to repair and was missed by two previous inspections. So the bank suggested a short sale as the easiest remedy and I bought it; call me stupid. They lose nothing while I am now screwed. [Too much to explain...]

I made attempts to at least clarify the info on my Equifax report only to shoot myself in the foot because the date of THAT dispute was then added to my report. :( I tried a refi on a second home but was turned down. Keep in mind my EF score is 729 and my only debt is in the house that I want to refi and that loan is paid off 60%. (*my question is coming)

EF finally took my SS out of "negative"! TU has me at 853 but as of today I have a "critical change" listed, shows the SS bank, and states "A new account has appeared on your credit report." Yet it is not new, and it contradicts their own data that has the standard remarks "Derogatory" and "Settled - less than full balance". ...Experian has me at 730 has the SS listed as negative and says "Failed to Pay"??? then payment status shows "Legally paid in full for less than the full balance" and comments "Election of remedy - reported by subscriber ".

It's obvious to me now, that the bank knew that a SS would guarantee their payment and any legal means would be risky. I also agreed to pay a note to the mortgage insurance company, which was "forgiven" before it was due two months later.

My question(s) are this??? since I just need a refi should I just try a company that only pulls EF reports? (less stressful :)) Should I keep fighting and hire an attorney? Any thoughts? Should I clarify any of the above novel? :)


Sub: #2 just checked.
Sun, 07/17/2011 - 07:35

ok, after years of not checking my report I have a lot of KD. But I haven't opened any accounts since Jan 2006 or paid anything since. I have a court judgement against me from 2007 and I have student loans that I left. I was homeless and went into depression and I have not worked since Jan 2006. I am still unemployed. What do I do if I want to build up my credit? Looks like loans from Sallie Mae went on to USA funds or something like that. I am not sure if USA funds mean from the government.

I am currently on the road to recovery and have dreams of buying a house. But I know in the current market it does not look good. How can I fix this?


Posts: 9
Credits: 577

Sub: #3 as i know this key derogatory in a credit report could be remove
Sun, 05/29/2011 - 18:48

as i know this key derogatory in a credit report could be removed from your account in the early payment. but this will also depend on the policy of your credit agency. better you consult with your creditor first, just to ensure you get the best result. and talk about how you will make the payment, i think it is all depend on your will and needs. if i were you, i will pay in full, of course if have the money to pay in full. at least i could have a peace of mind that i don't have any financial burden.
hope this can helps.


Sub: #4 Paying off KD accounts
Sun, 05/29/2011 - 17:11

Is it best to pay these KD accounts in full or should I pay them in monthly installments. Which will improve my credit report and how long will it take to see the changes in my report.


Sub: #5 subj. delete this post pls Thnx
Tue, 05/17/2011 - 09:52

subj. delete this post pls Thnx


Sub: #6 Actually, lender reported short sale in 2009 and I had 2 month i
Mon, 02/14/2011 - 18:26

Actually, lender reported short sale in 2009 and I had 2 month in 2009 KD.
After that it was ND - no data. When I looked at my credit report in January, 2011, I see that the same bank (for account with short sale) paled negative info and it is again KD.
Not sure what to do.


Sub: #7 KD
Sat, 02/12/2011 - 10:48

I had an account that went into collections. I was unable to pay and eventually the collection agency sent it to a law firm. I have been making payments on it for a year and am almost done. My credit report shows that the original collection agency is updating KD every month. It seems to me that it should at least show I am making payments or something right?

Anna Sweeting
Debt Samaritan
Posts: 1827
Credits: 38569.2

Sub: #8 The banks normally report the negative information immediately.
Sat, 02/12/2011 - 02:00

The banks normally report the negative information immediately. It is quite surprising that the lender did not report any negative information to the credit bureaus regarding the short sale.


Sub: #9 I had a short sale in November, 2009. Bank issued a debt cancell
Fri, 02/11/2011 - 22:10

I had a short sale in November, 2009. Bank issued a debt cancellation form for 2009, so this amount was added to my income. In January, 2011, this bank placed negative information on my credit report and account status become KD. Is it legal? Does it mean that bank can place bad record after 2-3-4years even for closed account?


Sub: #10 Snapperhead, a credit score of 700 is quite good keeping in mind
Tue, 12/14/2010 - 00:03

Snapperhead, a credit score of 700 is quite good keeping in mind the present market situation. However, the key derogatory (KD) will have a negative impact when you apply for a mortgage or any other kind of loan. If you can take steps to remove the KD, it will help you in improving your credit score and it will be easier for you to qualify for other loans in future.

Angela… paying off the KDs will have a positive impact on your credit scores. It will help you in increasing your credit scores. Moreover, as you pay off the KDs, the future creditors will consider this as a positive thing. As far as negotiating with the creditor for a pay off is concerned, you should offer an amount which you can afford to pay them. You’ll have to negotiate with the creditors so that they accept your pay off.

Jamie… though you settle the account for less, it doesn’t mean that the KD will be removed. You can write a Goodwill Letter to the creditor and request him to remove the negative listing from your credit report as you’ve paid off the dues as settled.

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