Days Past Due (DPD) in CIBIL Report

5paisa Research Team Date: 08 Feb, 2024 05:45 PM IST

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Banks and other financial organisations can verify your financial discipline using your CIBIL report. The banks and other financial institutions approve your loan or credit card application. It is based on the information in your CIBIL report. You have a better chance of getting a credit card or loan when your score is high. It serves as a gauge for your credit management skills.
A CIBIL report's Days Past Due comment is a crucial item that needs your quick attention. It is an element along with your credit score, recent credit inquiries, and more, that are included in your report. Also, it can have a negative impact on your CIBIL score. Continue reading to learn more about Days Past Due.

What are Days Past Due (DPD) in the CIBIL Report?

Here’s the meaning of DPD in CIBIL. Days Past Due (DPD) holds considerable importance within your CIBIL report, offering insights into your financial responsibility and payment behaviours. It serves as a crucial metric, highlighting the number of days a borrower exceeds the due date for loan EMIs or Credit Card payments. 
This comprehensive guide will delve deeper into DPD, elucidating its calculation methods, examining its significance, and exploring its implications for your overall credit health.


Elements of DPD and what each value implies
    • XXX as DPD value: Represents a secure value, indicating a lapse on the part of the bank or lender in updating data.
000 as DPD value: Another secure value, signifying no outstanding payments remaining.
STD as DPD value: Indicates that payments are overdue for less than 90 days. While generally viewed negatively, it is not as severe as other categories. 
Any DPD value aside from XXX or 000 is considered unfavourable. Although STD (up to 90 days) is less severe, any duration beyond that signifies a more critical situation. Banks frequently classify anything overdue by more than 90 days as NPA or Non-Performing Assets.
SUB as DPD value: Signifies an account that has stayed in the NPA stage for less than 12 months.
DBT as DPD value: Indicates an account that has remained in the SUB (sub-standard) category for a period of 12 months.
LSS as DPD value: Indicates an account where a loss has been recognized and is no longer considered collectible. This is a critical stage where the account has experienced irrecoverable losses.

How is DPD Calculated?

Days Past Due is determined by the disparity between the actual due date of an EMI or Credit Card bill payment and the date when the payment is actually made. For instance:

If your Credit Card bill payment is scheduled for the 15th of each month, and you make the payment on the 17th, the DPD will be 2. If the payment is made on the 20th, the DPD will be 5. Additionally, missing a payment in a given month will result in a DPD of 15 or higher, depending on when the subsequent payment is made.

The DPD calculation is based on the number of calendar days, not business days, between the due date and the payment date. Any payment made after the due date, even if it is just one day late, contributes to the DPD. This Days Past Due information is reported monthly in the CIBIL report, encompassing payments made across all your loans and Credit Cards.

A high DPD indicates a lack of discipline in payment and has a detrimental impact on your credit score. If the DPD surpasses 30-60 days, it can significantly harm your score, as it is deemed a default. The credit score may decrease by 50-300 points or more, depending on the severity of the default.

Ways to Report Dispute of DPD Errors

Suppose you discover inaccuracies in your credit report, particularly in the days past due in the CIBIL report section, where timely payments are incorrectly reflected with a value other than "000" (indicating the number of days the lender reported a missed payment). In that case, you have the option to report this error to the credit bureau.

Upon notification, CIBIL will initiate a verification process with the relevant lender and attach an "Under Dispute" tag to your credit account. Once the lender provides the accurate data to the bureau, it updates the credit report, eliminating the "Under Dispute" tag. CIBIL then shares an updated credit report, inclusive of your revised credit score.

What Can You Do to Have a Good Credit History?

Maintaining a positive credit history necessitates consistently making timely payments on loans and credit cards. It's essential to ensure that payments are settled on or before the due date each month until both the loan and credit card balances have been fully cleared. A robust credit score is crucial to enjoy the advantages associated with a commendable credit history.

How to Improve Your DPD?

Should you come across a high Days Past Due in your CIBIL report, taking proactive measures can contribute to the improvement of your credit score. Here are some effective strategies to enhance your creditworthiness as per the meaning of days past due in the CIBIL report: 

1. Timely Payments 
Make sure that all payments are completed by the due date and that any outstanding dues are cleared within 90 days. Timely payments play a pivotal role in gradually enhancing both your days past due in the CIBIL and overall credit score.

2. Credit Utilisation Ratio 
Sustain a robust Credit Utilization Ratio by utilizing only a portion of your allocated credit limit. Ideally, this ratio should remain below 30%. A lower ratio indicates prudent financial management, contributing positively to your credit score.

3. Error Reporting 
Carefully examine your credit report for any inaccuracies that may be contributing to a high DPD. Promptly report any errors to the Customer Care of the relevant credit bureau. Rectifying these inaccuracies is crucial to preventing undeserved negative effects on your credit score.

4. Active Credit Accounts 
Sustain the activity of your positive credit accounts to demonstrate your continual financial discipline. Lenders perceive active and well-managed credit accounts as evidence of your dedication to responsibly repaying future debts.

5. Maintain A Good Credit History 
Build a favourable credit history by consistently ensuring timely payments, effectively managing credit utilization, and maintaining a strong financial standing. A resilient credit history enhances your creditworthiness over time.

Conclusion

So, this was all about what is days past due in the CIBIL report. Days Past Due (DPD) serves as a crucial guide in navigating your financial path. Mastering its intricacies, gaining a deep understanding of its consequences, and implementing strategic measures for effective management become essential in cultivating a strong credit profile.

Consistent monitoring of days past due in the CIBIL report for informed financial decision-making, coupled with the seamless integration of online Credit Card payment options, forms a comprehensive approach to financial well-being. By adopting these proactive measures, you can skilfully navigate the intricate landscape of credit, ensuring the health and stability of your finances.

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Frequently Asked Questions

The CIBIL report contains DPD information for a maximum period of 90 days, divided into three months, with values reflecting 30, 60, and 90 days. These figures indicate the number of days that have passed or been missed after the payment due date for loan EMIs or credit card bills.

We do not have the ability to delete or modify DPD entries in our credit report, just as we cannot alter or edit any other information within our credit report. This is because DPD is an integral and interconnected component of the credit report.

Within the payment history section of your credit report, the days past due in the CIBIL reflects your payment timeline for the preceding 36 months.