DPD stands for Days Past Due and is one of the most crucial components in your credit report, which indicates your creditworthiness. It is crucial for loan approvals as it indicates the missed payments on your EMIs/credit card bills. Each loan creates a separate DPD table, on your credit report. In case of repayment default, the DPD stays on the report for three years.
A separate DPD table exists for each loan/credit card in your credit report. The table displays your monthly repayment history, with values indicating any delay in EMI/credit card bill payment. Refer to the sample DPD table provided below for an overview of the format in your credit report.
It is important to know what the values provided in the DPD table indicate and understand how they impact your creditworthiness.
|000||On-time payments with no outstanding dues||Safest value; indicates timely EMI payments and financial responsibility. Lenders may approve loans despite a lower credit score if DPD remains 000 consistently.|
|XXX||No data provided by lender to CIBIL||No impact on the applicant’s profile and they are considered safe. In the above sample, it means that no details were provided for February 2022.|
|30, 60, 90||Number of days passed after the payment due date.||Any value (30 or 60) negatively impacts the credit report and overall creditworthiness. In the sample, 30 denotes a missed EMI in March 2022, while 60 indicates default for both March and April.|
Finance experts advise that you must not miss your EMI/credit card bill payments for more than 90 days (three months).
Apart from the aforementioned values, you may also find other DPD values on your credit report:
|STD||Standard Payment: Payment made within 90 days of the due date.|
|SUB||Sub-Standard Payment: Payment made more than 90 days after the due date.|
|DBT||Doubtful: Payment remained sub-standard for over 12 months.|
|LSS||Loss: Indicates a high likelihood that the borrower won't repay the loan amount.|
DPD is crucial as it reveals the frequency and duration of delayed payments for your loan EMIs or credit card bills. Timely repayments are a key factor in determining creditworthiness. This makes DPD a vital criterion for loan/credit card eligibility. In certain cases, a clean DPD can lead to loan/credit approval even with a less-than-ideal credit score.
The full form of DPD is Days Past Due.
Any DPD value other than “000” and “XXX” has a negative impact on your credit report.
Whenever your lender communicates the data with respect to your loan EMI/credit card bill payment to CIBIL, your DPD for that loan/credit card account is updated accordingly.