DPD Full Form in CIBIL Report Or Banking

DPD in banking stands for ‘Days Past Due’. To know in detail what is DPD and what DPD in CIBIL means, read ahead. 

Meaning of Days Past Due (DPD) in CIBIL Report

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 - 

Enquiry Information

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.

Account Information

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?

Does DPD in CIBIL affect 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.

How to Build a Robust CIBIL Report?

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 - 

• Make EMI payments within the due date
• Pay your credit card bills in full every month
• Avoid settling your loans
• Don’t make too many credit enquiries
• Check your CIBIL report regularly
• If you see any errors on your CIBIL, dispute it at the earliest and get it rectified
• Build a good mix of credit, like secured, unsecured, credit cards, etc.
• Maintain a Credit Utilization Ratio of 30% or less

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.