According to Experian, the meaning is: **Key Derogatory = 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Bankruptcy Chapter 7, 11 or 12 Petitioned, or Discharged and Bankruptcy Chapter 7, 11, or 12 Reaffirmation of Debt Rescinded. Question 1: Does this mean its a negative line on your credit report, but has no weight on your credit score? The reason I don't see it carries any weight is of the 30 tradelines on my report about 8 carry this KD rating the last many months, but when I check Experien's Plus Score and Risk Level assessment, the "SCORE FACTORS THAT ARE NEGATIVELY AFFECTING YOUR SCORE" show mine not listing anything about too many KDs or charged off accounts. Question 2: If an account is KD, it shows under comments "Transferred to another lender or claim purchased". Do these typically disappear when requested to validate?
If it has a KD in the history, it's effecting your scores if relatively new. Pay no mind to a Plus score insofar as no one uses that except Macy's and Bloomingdales. The answer to your second question is no and validation is not used in relation to credit reporting agencies insofar as they don't have to validate accounts.
Any idea how much of an impact if in the last couple of months? Significant (greater than FICO 20 pts) or less?
MAJOR Problem with Key Derogatory Here is the major problem with Experian's KD rating (I am going through this myself). The whole reason I short saled - and actually came out of pocket 3K to do so - was so that I could buy in as little as two years. Since I now have a KD on my record which is considered a foreclosure, I am not allowed to buy property for five years (according to FannieFreddie lending guidelines). I know many of you out there will say I got what I deserved (you're probably right) but that is a separate issue. Point is I went through the months of hassle, inconvenience, and out of pocket cash to short sale instead of foreclosure when there was no benefit to do so.
i'm new at this game, so this might be a really dumb question. does any kd hold the same weight as a bankruptcy or foreclosure? also, i just checked my credit report and found a few accounts that i am not sure about. if i ask for validation or just ask what they are, will that send up a red flag to them and will they then come after me? they very well could be accounts that are mine, that i have no idea about, but i do not want them to come after me right now as i am getting ready to go to court with citibank. thanks for the help! suz
Re: MAJOR Problem with Key Derogatory No honey, do not apologize for anything. That BANK defrauded you. And NO, you DID not deserve that. Banks practice in fraud. Every single loan out there today is fraud if it came from a bank. Banks lend you NOTHING. YOU are actually the creditor, and that bank is the debtor. When you signed that promissory note you handed them "essentially" cash, they handed you a "check" back... was that a loan? NO, it was an EXCHANGE. This is what they do every single time they issue a "purported loan".. There are 3 key questions to ask the bank, do it in writing and send it certified mail. KEEP COPIES and a FILE on everything you send as well as any return items you receive. DATE the return items as to when you received it in the mail. Here is what they would have to produce in order testability that a loan was made that you may have a debt: 1. Produce documentation of prior title, ownership and rights to the money they purportedly loaned you; 2. produce documentation of the history and origin of funds that they purportedly had prior title, ownership and rights to that they purportedly loaned you (banking requires 3 generations at least if not all the way back to issuance/creation of the alleged fundsâ?¦this is why banks issue a letter of origin/history of funds); 3. produce documentation of the actual transaction and transfer of said funds (prior title, ownership, and rights) from loaner to borrower (invoicing/receipts) there is a difference between a â??loanâ? and â??debtâ?, conceptually and factually They will not be able to provide you with these items because they DO NOT EXIST. LOANS ARE FRAUD!
