Too many derogatory accounts or public records
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My report says that I have “too many derogatory accounts or public records”. What exactly does it mean, and how can I improve it?
It explains why you have a low credit score
Although you don’t mention it, I’m certain that your credit score is very low. Often, remarks of that kind come as explanation for a low credit score.
What it means is that compared to customers with similar credit profiles as yours, you have more derogatory items (late payments, charge-offs, collection accounts etc.) than you should have, and it’s impacting your credit score.
Most derogatory items age off your account 7-1/2 years from the date of first deficiency (default). Public records items also remain for at least 7 years (some are longer). However, paying-off derogatory items won’t remove them from your report, nor will it improve your credit score.
That doesn’t suggest you should keep ignoring them. You should certainly resolve those items, at least those you can do something about. To start with, it will look better to creditors looking at your credit report. More importantly, by ignoring them you ask for more trouble such as law suits, judgments and even liens or garnishment (See why-pay-off-debts.html for more information.
Resolving negative items is only half of the job. You need to re-establish good credit information if you want to see any improvement to your score. For this you need at least 24 months of consistent, timely payment history. If you don’t have an open, active line of credit get a credit card, even if you have to get a secured card. Use the card for normal purchases such as gas or groceries, wait for the statement, and pay the balance in full every month. That will build credit and avoid interest.
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