DPD (Days Past Due) is an element in your CIBIL Report. It informs how you pay credit card bills and EMIs, and if you skipped any payments. DPD also depicts the days on which the payments were delayed. In case the DPD indication is not '000' or 'XXX', then it means that the payment was skipped. DPD information is available in the credit report under the ‘accounts’ section. In case you missed any payments, the section reveals by how many days and in which month you missed the same.
Like many other factors which influence a credit score, DPD is one of the most crucial ones as it talks about your repayment behavior. If this section shows too much of a default, then your credit score by CIBIL will get hampered. In this post, we will discuss DPD in your credit report and its features, DPD codes and values, illustration of DPD, the essentials of a CIBIL score and CIBIL report, how to fix errors in DPD, and FAQs.
Here are the features of Days Past Due in a Credit Report:
Various types of DPD values are discussed below:
Depending upon the time for which a particular debt remains unpaid, codes are reflected in the CIBIL report of the applicant, and depending upon these codes credit decisions are taken by the lenders. Apart from 000 and XXX, all other codes reflect default in repayment of the loan. Values are assigned depending upon the severity of default.
‘000’ in all of the code columns of the report depicts that the installment has been paid on time and there is lower risk involved in the loan proposal. The lender may reject the loan proposal if any of the codes other than 000, XXX, and STD are observed in the credit report.
Here is an example about DPD:
CIBIL report is the indicator of the financial discipline, defaults, and repayment history of a loan applicant. Every bank/ financial institution extracts a CIBIL report before considering any loan because through the report the bank gets to know the creditworthiness of the applicant. The majority of loan applications in India are rejected based on credit bureau reports (CIBIL Report).
Having a good score in the CIBIL report can increase the chances of getting a loan sanctioned as the lenders get sure about the past repayment of debt which creates a feeling of trust in the mind of the lender. Timely and regular repayment of loans ensures a better CIBIL score. Many banks charge interest rates based on the CIBIL Score of the applicant, hence having a better CIBIL score may benefit the applicant with cheaper credit.
A typical CIBIL report consists of basic details of the borrower such as name, address, etc., CIBIL Score along with the interpretation, summary of accounts including accounts showing past due, individual accounts with respective status for last 3 years and current status, payment history and recent inquiries by various institutions.
Here are the steps you need to keep in mind if there are DPD errors:
Here are the CIBIL Report DPD FAQs:
Whenever a lender submits your credit behavior data to CIBIL, your CIBIL Report gets an update against the DPD value. This information also allows the credit bureau to evaluate your credit report. But the DPD code may not change every month, even if the bank/financial institution updates the bureau monthly with your credit behavior. You must not miss EMI or payments of dues by more than three months. Otherwise, your credit score and creditworthiness can get seriously damaged.
Any DPD value other than ‘000’ and ‘XXX’ is counted as negative. Banks term dues over 90 days or more as non-performing-assets. Statuses such as 'Settled' or 'Written Off' are also negative.
If your DPD is poor, it can take about 2 years or more to show a stable DPD again.
In many cases, lenders reject loan applications despite a credit report being relevantly clean. But the DPD section is of a value other than 'XXX' or '000'. Unfortunately, you cannot change the DPD details for a month for your CIBIL report.
If you see errors in DPD, where you have repaid on time for a month, but the DPD value is other than ‘0’, it indicates that the bank/financial institution reported that you missed the payment by the number of days as shown against the DPD result in the credit report. In such a case, you can report this mistake to CIBIL. The credit bureau will contact the lender to verify the details. Your credit account will then bear the tag ‘Under Dispute’ till the error is fixed.
Subscribe to our newsletter
Akshar Blue Chip IT Park, 703, Thane - Belapur Rd, Turbhe, Navi Mumbai, Maharashtra 400705