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Days Past Due (DPD) is an essential aspect of your CIBIL report. It is used to track a person\u2019s payment behaviour. DPD also identifies if you have not paid your Credit Card or EMI bills.<\/p>\n\n\n\n
Your CIBIL report gives details about your credit history. It also helps financial institutions and banks understand your payment behaviour. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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\u2019ve delayed paying your loan or credit card installment. <\/p>\n\n\n\n
CIBIL report\u2019s \u2018Payment History\u2019 section has your DPD information. It helps lenders evaluate your repayment behavior over the past 36 months.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
Here\u2019s a straightforward formula: DPD = Date of Payment – The Due Date<\/strong>. <\/p>\n\n\n\n Let\u2019s understand DPD\u2019s calculation with an example. <\/p>\n\n\n\n Ms. Shah\u2019s 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n In your CIBIL report, DPD shows your payment history over the past 36 months for each credit account. Common entries include:<\/p>\n\n\n\n <\/p>\n\n\n\n Regularly checking your CIBIL report can help you keep track of your DPD and ensure the accuracy of this indicator.<\/p>\n\n\n\n Lenders scrutinize your DPD to assess your creditworthiness. Even a single delay in payments can have a negative effect on your score. <\/p>\n\n\n\n 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. <\/p>\n\n\n\n Conversely, if you have a history of \u201c000\u201d entries, it will demonstrate strong financial management and position you as a low-risk borrower. High DPD values can lead to:<\/p>\n\n\n\n It\u2019s a misconception that if you miss a payment by just a few days, it won\u2019t affect your credit report. In reality, any delay in payment is recorded and can impact your creditworthiness.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Here are some ways to make sure you keep a good DPD and credit score:<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Put up calendar alerts, set up auto-debits, or use financial apps to remind you when payments are coming up.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Tell your lender if you can’t pay on time. They may offer solutions like adjusted payment plans to prevent negative DPD reporting.<\/p>\n\n\n\n Avoid maxing out credit limits. Try to keep your usage under 30% to maintain a good credit profile.<\/p>\n\n\n\n If you notice an incorrect Days Past Due entry, you can take the below steps:<\/p>\n\n\n\nHow is DPD Represented in Your CIBIL Report & Why is It Important? <\/strong><\/h2>\n\n\n\n
Notations <\/strong><\/td> Meaning<\/strong><\/td><\/tr> 000<\/td> Points that you have paid your credit bills on time. <\/td><\/tr> STD<\/td> Shows that the payment is due for less than 90 days. <\/td><\/tr> SUB<\/td> Points that the payment is due for over 90 days. <\/td><\/tr> DBT <\/td> Tells that the credit account has been marked under the SUB category for a period of 12 months. <\/td><\/tr> LSS<\/td> Indicates an account that cannot be considered collectable.<\/td><\/tr> XXX<\/td> Denotes that the lender has not reported the data for that period. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Impact of High DPD on Your Credit Health<\/strong><\/h2>\n\n\n\n
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How to Maintain a Healthy DPD?<\/strong><\/h2>\n\n\n\n
Pay on Time<\/strong><\/h3>\n\n\n\n
Use Reminders<\/strong><\/h3>\n\n\n\n
Track Your Credit Report<\/strong><\/h3>\n\n\n\n
Communicate with Lenders<\/strong><\/h3>\n\n\n\n
Credit Utilization<\/strong><\/h3>\n\n\n\n
What to Do If You Find an Error in Your DPD<\/strong><\/h2>\n\n\n\n