An individual's CIBIL report provides details about their credit history and credit score. Banks and financial institutions use it to evaluate loan applications. This is shared by the credit reporting agencies who generate credit reports by compiling relevant data available to the borrowers. One of the details it contains is the DPD, the full form of which is Days Past Due.
What is DPD in CIBIL Report?
DPD displays the number of days that have passed without making an EMI or credit card payment.
The DPD parameter displays your repayment history. It is one of the most important factors in determining a credit score. Any missed payments will appear in DPD and may be interpreted by lenders as your inability to pay your debts. Missed payments over time can place your account in the substandard category, lowering your credit score. Even a few missed payments can harm your DPD and thus your credit score.
So basically, DPD demonstrates how consistent you have been in making EMI payments in the past. It includes your payment history for the previous 36 months. When evaluating your credit application, the lender looks to see if you have ever missed a payment. If your DPD is '0' for all 36 months, it indicates that you have paid off all credit obligations on time and pose less risk to the lender.
Missing deadlines occasionally has a negative impact on your credit score and creditworthiness, but some lenders may still approve your credit application. However, frequent missed payments and long-term non-payment of dues pose a high risk to lenders, who may refuse to approve your loans or credit card applications.
How is DPD Calculated?
DPD is determined by comparing the due date of an EMI or credit card bill payment with the actual date of payment.
Let us understand how DPD is calculated with an example. Suppose your rent is due on the 1st of every month. If you pay it on the 3rd, your Days Past Due (DPD) would be 2. If you pay it on the 5th, your DPD would be 4. If you happen to miss the payment entirely for that month and pay on the 10th of the following month, your DPD will be 10 or higher, based on when you make the next payment.
Significance of DPD in a CIBIL Report
To banks and financial institutions, the CIBIL credit report is proof of your financial discipline. The CIBIL report is used by banks and financial institutions to approve your loan or credit card application. If you have a good credit score, you have a better chance of getting a loan, such as a Home Loan or property loan, or a credit card. It measures how well you manage your credit.
When a lender sends your information to the credit bureau, it updates the information in your credit report and calculates your credit score. Even if the lender provides the information on a monthly basis, your credit score may not change every month.
If you miss a deadline by 30 days, the bureau will mark your DPD for that month as "30" on your credit report. Assuming you don't make the payment and the lender reports it to the bureau the next month again, your DPD would be updated as "60".
Every loan/credit card account in your name has its own DPD table on your credit report. The DPD table displays your monthly repayment history. The value listed against a given month on a DPD table indicates the EMI/credit card bill payment delay (if there is any). Here's an example of a DPD table. You can use this table to get an idea of the DPD format in your credit report. In the following section, we will go over the meanings of the various DPD Values (as shown in the table).
Terminologies Used in a CIBIL Report for DPD
Some lenders report DPD values in the following format according to the norms set by RBI:
| 1 | Standard (STD) | Payments being done within 90 days |
| 2 | Special mention account (SMA) | This is a special account created to keep track of accounts that were previously standard but are now moving towards sub-standard status. |
| 3 | Sub-standard (SUB) | Payments being done after 90 days |
| 4 | Doubtful (DBT) | Accounts that remain substandard for a period of 12 months |
| 5 | Loss (LSS) | Accounts where losses have been identified but cannot be collected |
The letters "XXX" written against your DPD indicate that the banks have not provided information for this account for the specified months.
Ways to Improve Credit Score with a High Days Past Due (DPD)
You can raise your credit score by doing the following:
- Pay your bills on time: Make certain that you pay all of your bills on time. To improve your DPD, all outstanding payments should be made within 90 days. This is the most important step you can take to gradually improve your credit score.
- Keep your credit utilisation ratio constant: The credit utilisation ratio indicates how much credit you are using in relation to your available credit limit. The credit utilisation ratio should ideally be less than 30%. A higher credit utilisation ratio may appear to indicate that you have a lot of financial responsibilities to meet, which can harm your credit score.
- Report any errors in your credit report: Your credit report may contain errors that incorrectly show a high DPD. A high DPD can have a negative impact on your credit score, so you must report the error as soon as possible. You can do so by writing to the credit bureau's customer service department.
- Maintain your credit accounts : It is best to keep your good credit accounts active because they demonstrate your financial discipline. Lenders view it as proof that you will repay your future debts with the same diligence.
Maintaining a good credit history is something you should always strive for. Making on-time payments, maintaining a good credit utilisation ratio and a good credit mix, limiting loan applications, and so on are all ways to ensure a good credit history.
Also Read: How to Check CIBIL Score Using PAN Card
Frequently Asked Questions
The full form of DPD in a CIBIL Report is Day Past Due.
Whenever your lender provides information regarding your loan EMI or credit card bill payment to CIBIL, your DPD for that specific loan or credit card account is revised accordingly.
No, just as we cannot modify any details in our credit report, we cannot amend DPD entries from the report. Given its significant role in the credit report, DPD cannot be changed. However, with consistent payments over a few months, we can expect stability or improvement in DPD.
