DPD in banking stands for ‘Days Past Due’. To know in detail what is DPD and what DPD in CIBIL means, read ahead.
If you were searching for DPD full form, it is ‘Days Past Due’. It signifies the number of days that you have delayed the payment of your EMI.
The value of DPD in banking can be ‘STD’, ‘000’, ‘XXX’, or a numerical. Both STD and 000 mean standard, and depict the fact that you have paid the EMI within the due date, that is, within the first 90 days. If the value is ‘XXX’, it means that the lender has not sent this information to the credit bureau.
When the value of DPD in CIBIL is numerical, it shows the number of days by which you had delayed the payment. Continue reading to know how this impacts your CIBIL report and score.
Your creditworthiness is not defined by your CIBIL score alone, but your CIBIL report as a whole. Here are the main things that a CIBIL report tells the lender about your credit behavior -
Whenever you apply for a loan, the lender checks your CIBIL report after you authorize them. This is known as a hard pull on your CIBIL, and it plays a major role in your creditworthiness.
All enquiries that are made, including the loans that do not get approved, stay in this section of your CIBIL report for at least 7 years. If you have too many enquiries on your CIBIL report, it makes you look credit hungry and may diminish your chances of getting your loan approved.
The information about days past due or DPD is listed under this section of your CIBIL report. This information tells the lender how regular you are with your payments, and how you manage your EMIs.
Other than the days past due information, this section has the account information and the status of the account.
The account information is a gist of all the loans that you have taken in the past. This includes information about the type of loan, date of opening the loan account, and when the last information was reported to CIBIL.
The status of the account tells the lender about the current status of your loan account - active, closed, written off, or settled. All of these play a major role in how your credit behavior is assessed by the lender.
Learn More About : How to Raise Dispute in CIBIL Report?
Now that you know ‘what is DPD’, it is time to understand if it affects your CIBIL report. The value of DPD in CIBIL does affect your overall report.
If the value of DPD is ‘STD’, ‘000’, or ‘XXX’, you don’t have anything to worry about. It is the ideal situation and has a positive impact on your CIBIL report.
But if you have delayed EMI payments in previous loans, the value of DPD will be numerical. The higher the number, the worse it is. It will tell the lender that you delayed payments for a long time.
There are many things in a CIBIL report that a lender looks at. Here are some tips and tricks to build a CIBIL that can get your loans approved easily -
DPD in CIBIL and DPD in banking stand for days past due, which is information about the number of days you delayed your EMI payment. Lenders assess your whole CIBIL report and not just your score before approving a loan, and DPD can play a huge role in it.
Thus, it is important to pay your EMIs on time. You can facilitate this by planning your loans beforehand and setting up reminders. A good CIBIL report can give you more negotiating power when you are applying for a loan, and you can get a loan on more favorable terms.
You cannot remove the DPD (Days Past Due) information from your CIBIL if it is correctly reported. But, in case you see any error, you can raise a dispute and get it rectified.
The number of days in DPD (Days Past Due) are calculated by counting the number of days since the past payment that has not been completely paid.
If your DPD (Days Past Due) value is ‘XXX’, you have nothing to worry about. It simply means that the lender has not shared this information with the credit bureau.
Yes, if you delay your payment for 90 days, your DPD (Days Past Due) can be 90.
No, the higher the DPD (Days Past Due), the worse it is for you, as it shows that you delayed your payment longer. You should pay your EMIs within the due date every month.
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