Days Past Due, or DPD, is the most important factor on your CIBIL report that can significantly determine the chances of your credit proposal getting approved by the lender. DPD value indicates the number of days the borrower has defaulted on loan EMIs or credit card dues in the past.
A key element that a CIBIL score relies on is the history of repayment. Lenders scrutinize this part carefully during the credit approval process. They examine each credit product to identify any non-zero DPD in the credit report. Let’s explore what a DPD is and its effect on the credit score.
What is Days Past Due (DPD) in CIBIL Report?
Days Past Due (DPD) in a CIBIL report is a crucial tool that gives a hint of your credit repayment habits. DPD is the time frame when EMI or Credit Card payment of the loan is higher than the due date, and this is a sign of possible defaults or paying the risk that is delayed on time.
It is an indicator of your financial discipline by signaling the number of days wherein the payment of the installment is beyond the defined due date. The less the DPD reports show, the more it builds your credit profile, ceasing the delay in your financial welfare. However, on the other hand, DPD values that are further elevated can be perceived as warning signs pinpointing contradicted payments and the remaining credits not good for a credit score and overall creditworthiness.
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Importance of Days Past Due (DPD)
The DPD value is a crucial factor in determining your credit score and overall creditworthiness. Some of the reasons are:
- Marker of Financial Discipline: A consistently low or non existent DPD shows that you are financially responsible and handle your debt payments efficiently. On the other hand, an elevated DPD indicates possible financial instability or inadequate financial oversight, signaling concerns for prospective lenders.
- Effect on Credit Rating: Your credit score, a three-digit figure that varies from 300 to 900, is greatly affected by your DPD. On-time payments contribute to a good credit score, while regular late payments may result in a decreased score. A diminished credit score lowers your likelihood of obtaining loans or credit cards in the future.
- Creditor’s Viewpoint: Lenders utilize the DPD value to evaluate the risk linked to providing you with a loan. A high DPD signifies a greater likelihood of default, which may result in possible denials of credit applications or the provision of credit at elevated interest rates.
How Days Past Due (DPD) is Calculated?
DPD Values and their Meanings
- XXX as DPD value: Indicates a safe value, revealing a failure on the part of the bank or lender to update data.
- 000 as DPD value: Another secure value, denoting no outstanding payments left.
- STD as DPD value: Reflects that dues are pending for less than 90 days. It’s generally considered negative but not as severe as other categories.
Monthly Reporting of DPD
How is DPD Reported?
- If a payment is missed by 30 days, the DPD will be reported as “30” for that month.
- If payments are missed for two consecutive months, the DPD will be reported as “60”.
- If payments are missed for multiple months, the DPD will increase.
- If a bank doesn’t provide information for an account, “XXX” will be reported for that month.
Where can I see my DPD?
- You can see your DPD in the “Payment History” section of your CIBIL report.
- You can get your CIBIL report from the CIBIL website or through other authorized portals.
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Impact of DPD on your CIBIL Score
1. Effect on Credit Score
Making payments on time improves your credit score, while DPD can lead to problems. Elevated DPD values, particularly those exceeding 90 days, can greatly diminish your score. By controlling your DPD and establishing a history of on-time payments, you can enhance your credit profile and secure more favorable loan rates and credit deals.
2. Loan and Credit Card Approvals
DPD represents the count of days that the borrower has failed to make timely payments or has postponed them. Thus, the greater the DPD, the lesser your creditworthiness, and vice versa. Make sure to settle all loan EMIs and credit card payments promptly to prevent any DPD number from appearing in your credit report.
Also Read: How much cibil score required for Home Loan?
Common Days Past Due Values and their Significance
| DPD Value | 000 | XXX | 30 | 60 |
| Month | 1-20 | 2-20 | 3-20 | 4-20 |
1. 000 DPD Value
This means the same thing as standard, and the three zeroes simply indicate the number of days by which you have missed any payments, which is 0.
2. XXX DPD Value
This value indicates the lender’s failure at that moment to supply the necessary credit information. The lack of this information makes its nature conjectural and therefore has no implications for you. In simple terms, it’s beneficial to include this DPD value in your report.
3. 30 DPD Value
Any number like 30, 60 refers to the number of days that the loan has been defaulted for. This number can harm your credit score and consequently impact your ability to borrow funds at reasonable rates of interest.
4. STD DPD Value
Abbreviated as standard, this indicates that all your payments have been made on time, and your financial management has been outstanding. A series of these STD embeddings in your CIBIL report enhances your total CIBIL score.
5. SUB DPD Value
This indicates that payments are consistently being made 90 days after the due date. A blemish of such kind is significant and is a deterrent to future creditors.
6. DBT DPD Value
Abbreviated for doubtful, it signifies that the debtor has repeatedly failed to meet debt obligations for more than 12 months. The likelihood of recovery in these situations, if not nonexistent, is minimal at most.
7. LSS DPT Value
Abbreviated for Loss, the borrower identified as such is classified as a non-profitable asset, and the loaned sum is no longer considered recoverable. The existence of this flaw is truly unacceptable to any prospective lender, rendering the likelihood of obtaining any loans in the future nonexistent.
How to Improve your Days Past Due (DPD) Status
Timely Payments
Make sure that all payments are completed by the deadline and any outstanding amounts are cleared within 90 days. Making payments on time is essential for steadily enhancing your DPD and overall credit rating.
Managing Credit Utilization
Keep a healthy Credit Utilisation Ratio by utilizing just a small portion of your available credit limit. Ideally, this proportion ought to be under 30%. A decreased ratio indicates prudent financial handling, resulting in a favorable impact on your credit score.
Maintain a positive credit record
Develop a favorable credit history by regularly making timely payments, controlling credit usage, and upholding a solid financial status. A strong credit history enhances your credit reliability as time progresses.
Also Read: What is Company Credit Report?
How to Monitoring and Maintaining a Good DPD
Regular Credit Report Checks
Reviewing your credit history and credit scores can assist you in gaining a clearer insight into your existing credit situation. Frequently reviewing your credit reports can increase your awareness of what lenders might observe. Reviewing your credit reports can assist you in identifying any erroneous or missing details.
Financial Planning and Budgeting
Effective financial planning methods enable you to reach your financial objectives, whether purchasing a family house, saving for your kids’ education, securing a comfortable retirement, or taking a dream holiday.
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- Loan Is Closed, But Not Updated In CIBIL
- What is CIBIL Dispute Resolution
FAQs
What is DPD in a CIBIL report?
DPD in a CIBIL report stands for Days Past Due. It indicates how many days a borrower has missed a payment on a loan or credit card.
What is considered as 30 Days Past Due?
Days Past Due indicates how consistent your repayments have been, how many repayments have been missed and how many days. 30 DPD indicates that a loan payment has been defaulted for 30 days.
How does DPD affect my CIBIL score?
The lesser the DDP values, the better it influences your credit profile, improving your financial health. Conversely, higher DPD readings are warning flags, signaling behind-schedule payments that can erode your credit score and, by extension, your credit trustworthiness.
What does a DPD value of 000 mean?
This means the same thing as standard, and the three zeroes simply indicate the number of days by which you have missed any payments, which is 0.
How can I improve my DPD status?
Concentrate on ensuring all your bill payments are timely, clear any overdue amounts quickly, arrange automatic payments for ongoing bills, frequently check your credit report for inaccuracies, and reach out to your lenders if you encounter financial challenges to discuss possible options; ultimately, showing responsible credit management by regularly meeting your debt obligations by their deadlines.
What should I do if I find an error in my Days Past Due value?
If you find an error in the Days Past Due (DPD) value on your credit report, you must promptly reach out to the credit bureau and submit a dispute to amend the erroneous information; include supporting documents such as payment receipts to validate your assertion that the DPD is wrong.
What companies include a DPD in their credit report?
All Credit Information Companies (CICs) or credit bureaus like TransUnion CIBIL, Experian, Equifax, and CRIF High Mark reference the DPD value. The consumer credit information that banks submit to credit bureaus each month generates the DPD value.
