Days Past Due (DPD) in CIBIL Report

Days Past Due (DPD) is an essential aspect of your CIBIL report. It is used to track a person’s payment behaviour. DPD also identifies if you have not paid your Credit Card or EMI bills.

Your CIBIL report gives details about your credit history. It also helps financial institutions and banks understand your payment behaviour.    

This blog will explore the meaning of DPD in CIBIL, its impact on your credit score, and help you grasp the importance of monitoring it.

What is Days Past Due (DPD)?

DPD in CIBIL report means the number of days you have missed making a payment on your credit account after its due date. Essentially, DPD records how long you’ve delayed paying your loan or credit card installment. 

CIBIL report’s ‘Payment History’ section has your DPD information. It helps lenders evaluate your repayment behavior over the past 36 months.

How is DPD Calculated?

Now that you understand what DPD in CIBIL means, let’s look at how it is calculated. DPD is calculated by subtracting the due date from the date when you made the payment. 

Here’s a straightforward formula: DPD = Date of Payment – The Due Date. 

Let’s understand DPD’s calculation with an example. 

Ms. Shah’s credit card payment was due on the 20th of December. But she cleared her credit card bill on the 25th. So, her DPD will be 5 days. You must note that DPD calculation considers calendar days, including weekends and holidays.

DPD counts any payment you make after the due date, even if you’re late by just one day. Lenders report DPD monthly to credit bureaus like CIBIL. It is vital to maintain a low DPD as it directly impacts your credit score and financial credibility.

How is DPD Represented in Your CIBIL Report & Why is It Important? 

In your CIBIL report, DPD shows your payment history over the past 36 months for each credit account. Common entries include:

Regularly checking your CIBIL report can help you keep track of your DPD and ensure the accuracy of this indicator.

Impact of High DPD on Your Credit Health

Lenders scrutinize your DPD to assess your creditworthiness. Even a single delay in payments can have a negative effect on your score. 

If you take more than 90 days past due to pay your credit bills, your lender may view you as a potential risk. Lenders may charge higher interest rates, reduce your credit limits, or even reject your future loan applications due to the same. 

Conversely, if you have a history of “000” entries, it will demonstrate strong financial management and position you as a low-risk borrower. High DPD values can lead to:

• Lower Credit Score: Significantly overdue payments can hurt your credit score and affect your ability to get credit in the future.

• Loan Application Rejections: Lenders may see high DPD numbers as a sign of financial irresponsibility. This will lead them to turn down your credit requests.

It’s a misconception that if you miss a payment by just a few days, it won’t affect your credit report. In reality, any delay in payment is recorded and can impact your creditworthiness.

Another myth is that paying off the overdue amount immediately removes the negative DPD entry. While settling dues promptly is beneficial, the DPD record will stay in your credit history for a certain period and might influence future credit assessments.

How to Maintain a Healthy DPD?

Here are some ways to make sure you keep a good DPD and credit score:

Pay on Time

Pay your EMIs and credit card bills on or before the due date. You should keep enough money in your accounts to cover automatic payments.

Use Reminders

Put up calendar alerts, set up auto-debits, or use financial apps to remind you when payments are coming up.

Track Your Credit Report

You should check your CIBIL report regularly to stay informed about your DPD and credit health. If you see any mistakes, raise a dispute with the credit bureau for correction.

Communicate with Lenders

Tell your lender if you can’t pay on time. They may offer solutions like adjusted payment plans to prevent negative DPD reporting.

Credit Utilization

Avoid maxing out credit limits. Try to keep your usage under 30% to maintain a good credit profile.

What to Do If You Find an Error in Your DPD

If you notice an incorrect Days Past Due entry, you can take the below steps:

• Raise a Dispute: Get in touch with CIBIL to immediately report the discrepancy.
• Provide Documents: Submit proof of payment or any other relevant documents to back your claim.
• Follow Up: Ensure the error is corrected to prevent it from affecting your credit score.

Wrapping Up

Understanding what is DPD in CIBIL report as well as maintaining your DPD is essential for having a strong credit profile. Pay your credit bills on time and regularly check your credit report to maintain a healthy DPD status. This will also boost your CIBIL score and help you get a loan when you need it. 

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