Key Derogatory

The term “Key Derogatory” is often used by the credit bureaus to mark a significant negative entry on your credit report.

Accounts listed as Key Derogatory (KD) have significant effect on your credit. ““Derogatory” refers to negative information, while ““Key” simply implies that the information was significant enough to make a major impact on your credit score.

The KD by itself is not what will impact your score. It’s just a notation so that creditors reviewing your report can see it. What will hurt your score is the actual reason behind the remark, such as a Charge-Off, Collection Account, Settlement, Bankruptcy etc.

Additionally, if you look at your credit report’s explanation section, there’s usually a section at the bottom or back that explains all of the derogatory remarks.

Experian defines Key Derogatory as ““Claim, Term Default, Government Claim, Paid by Dealer, Bankruptcy Chapter 7, 11 or 12 Petitioned, or Discharged and Bankruptcy Chapter 7, 11, or 12 Reaffirmation of Debt Rescinded.