Maintaining a healthy CIBIL Score is of utmost significance to one’s financial well-being. One crucial aspect of credit health that often goes unnoticed is the CIBIL DPD (Days Past Due). In this article, we will dive into what CIBIL DPD is, its format, how it affects your credit health, and how you can respond to any errors that may arise.
What is CIBIL Days Past Due (DPD)?
Days Past Due DPD in CIBIL is an important parameter used by credit bureaus that measures your credit repayment behaviour. It reflects the number of days a borrower delays in making the minimum payment on their credit obligations. This data is recorded by credit bureaus like TransUnion CIBIL and influences your credit score, which is a numerical representation of your creditworthiness.
Benefits of DPD
- Demonstrates financial discipline: A good DPD reflects timely payments and responsible credit management, showcasing your financial discipline to lenders.
- Increases creditworthiness: Positive DPD values boost your creditworthiness, making it easier to access loans and credit cards at favourable terms.
- Timely error identification: Regularly monitoring your DPD allows you to identify and rectify errors promptly, maintaining an accurate credit report.
Format of CIBIL DPD
- Range: DPD values range from 0 to 999.
- Tabular representation: CIBIL report displays DPD for each month in a tabular format.
- Codes: Different codes represent various payment statuses, such as ‘000’ reflecting timely payments within 90 days and thus a positive payment history, and ‘XXX’ for instances when the lender has not provided payment details.
- Account-specific: DPD is reported for individual credit accounts, offering a comprehensive view of your payment behaviour.
Abbreviated asset classifications under DPD are outlined below
- Standard or STD: Payments made within 90 days
- Special mention Account or SMA: Reporting standard accounts moving towards sub-standard
- Sub-standard or SUB: Payments made after 90 days
- Doubtful or DBT: For accounts that have stayed sub-standard for more than 12 months
- Loss or LSS: For accounts where loss has been identified and are no longer collectible
When is DPD updated in the credit report?
Credit bureaus update DPD information on a monthly basis. This regular update helps lenders gauge a borrower's current financial behaviour and assess their creditworthiness more accurately.
Steps to check DPD in CIBIL report
To access your CIBIL DPD information, follow these simple steps:
- Visit the CIBIL website and log in or create an account.
- Enter the required personal and financial details to verify your identity.
- Request a copy of your credit report.
- Review the DPD mentioned against all your credit products for the past 36 months to understand your payment history.
How should you respond to DPD errors in your CIBIL report?
It is essential to regularly monitor your credit report for any inaccuracies. If you notice any incorrect DPD entries, follow these steps:
- Dispute the error with CIBIL by raising a dispute online or through a written request.
- Provide supporting documents to substantiate your claim.
- CIBIL will investigate the matter and correct the error if found valid.
CIBIL DPD is a critical factor that affects your credit health and determines your creditworthiness in the eyes of lenders. By understanding its significance and maintaining a positive DPD, you can enhance your chances of securing loans and credit at better terms. Remember, financial discipline and responsible credit management are key to building a good credit score. If you need assistance in improving your credit score, consider exploring the benefits of Bajaj Finserv Credit Pass, which can help you on your journey to achieving a healthier credit profile. Use it to monitor all your credit accounts in one place and track your credit factors and upcoming payment deadlines, so you are always up-to-speed. Leverage its free monthly CIBIL Score checks to take charge of your credit building and establish a positive credit history.
What does it mean to have DPD?
In the credit world, DPD stands for Days Past Due. It indicates how many days past the due date a payment on a loan or credit card was received. Here is a breakdown of what a DPD value might mean on your credit report:
- 000: This is a positive sign, indicating your payment was received on time.
- XXX: This means the lender did not report any data for that particular month.
However, any value other than 000 or XXX can be negative:
- STD: This indicates a payment delay of less than 90 days.
- A numerical value: The higher the number, the longer the delay in payment. This can significantly impact your credit score.
Important elements of DPD value and what it signifies?
The DPD value on your credit report holds significant weight. Here's a breakdown of what different values might represent:
- XXX: This is a safe value, but it implies the lender might not have updated your data.
- 000: This signifies a perfect payment history for that month.
- STD: This indicates a delinquency of less than 90 days. While not ideal, it's less severe than higher values.
- SUB: This signifies an account that was classified as Non-Performing Asset (NPA) for less than 12 months.
- DBT: This indicates an account that remained classified as Substandard (SUB) for over 12 months.
- LSS: This is the worst-case scenario, where the debt is considered a loss and likely uncollectible.
Is it possible to change DPD values?
Unfortunately, there's no way to directly change DPD information for a specific month on your credit report. However, there are ways to improve your creditworthiness over time:
- Make timely payments: Going forward, consistently paying your bills on time will positively impact your credit report.
- Dispute errors: If you believe a DPD value is inaccurate, you can file a dispute with the credit bureau.
While negative DPD values from a year ago won't be reflected after two years, consistently maintaining good credit habits is crucial.
Does DPD in CIBIL affect CIBIL report?
Yes, the DPD value significantly impacts your CIBIL report, which is a credit information report used in India.
- Ideal values: If your DPD shows "STD," "000," or "XXX," it is a positive sign.
- Negative values: A numerical DPD value indicates a payment delay, and the higher the number, the worse the impact on your CIBIL Score.
DPD’s updation frequency in your CIBIL report
Whenever a lender submits your credit data to the credit bureau, your CIBIL report is updated. Here's how missed payments can affect your DPD:
- Missed payment by 30 days: The DPD for that month will be reflected as "30" in your report.
- Consecutive missed payments: If you miss subsequent payments and the lender reports them, the DPD value will keep increasing (e.g., 60 for a 60-day delay).
Experts recommend avoiding late payments exceeding 3 months to minimise the negative impact on your CIBIL Score and creditworthiness.
