Days past due (DPD) is the total number of days by which you have missed paying your credit card bill, EMI payments, loan payments, etc. If your payments have been timely, the DPD value will show as “0”. However, if you have missed the due date by let’s say 30 days, the DPD value will show as “30” against your previous month’s report. “0” or “STD” are the only two classifications that are considered good by lenders. “STD” or standard is when the payments are being cleared within 90 days.
Importance of Days Past Dues (DPD)
DPD is the parameter that will show your repayment history. It is one of the most important parameters when calculating the credit score. Any missed payments will show up in DPD and can be perceived by the lenders as your inability to pay your dues. Missed payments over a period of time can put your account in the substandard category which will bring your credit score down. Even occasionally missed payments can hurt your DPD and hence your credit score.
What values are good in Days Past Due (DPD)?
A DPD should not be too high for sure. A good/bad DPD also depends on the credit account. Like, for a credit card, a DPD of less than 30 days is okay while for a home loan, 90 days is good.
When can you expect to see Days Past Due (DPD) in your report?
DPD will show up in your report when you miss a payment due date by 30 days. The credit bureau updates it as “30” for that particular month. But, if you miss it for 2 consecutive months, it will show up as “60”. This can have a serious negative impact on your credit score. If you miss the payments by over 3 months, your amount will be moved from a standard account to a sub-standard account.
Where can you find Days Past Due (DPD) in the credit report?
Let us look at this step-by-step –
- Go to the “Payment History” section of the CIBIL™ report.
- Look for all the credit products you have like a credit card, a home loan, an education loan, or a personal loan.
- DPD will be mentioned against each of them for the past 36 months.
Asset classification in Days Past Due (DPD)
It is important to pay your dues on time to avoid a low CIBIL™ score. Let us look at the terminology being used in the CIBIL™ report for DPD.
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Asset classification in DPD |
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1 |
Standard (STD) |
Payments being done within 90 days |
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2 |
Special mention account (SMA) |
This is a special account created to keep a note of accounts that previously were standard and now moving towards sub-standard |
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3 |
Sub-standard (SUB) |
Payments being done after 90 days |
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4 |
Doubtful (DBT) |
Those accounts that remain sub-standard for 12 months |
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5 |
Loss (LSS) |
Those accounts where losses are identified and cannot be collected |
“XXX” written against your DPD means that the banks haven’t provided information for this account for the said months.
Ways to improve credit score with a high Days Past Due (DPD)
If you notice a high DPD in your credit report, make sure you check the report thoroughly.
You can improve your credit score in the following ways –
- Make your payments on time – Make sure you are paying all your dues within the due date. All your outstanding should be paid at least within 90 days to improve your DPD. This is the most important step you can take to ensure your credit score slowly improves.
- Maintain your credit utilization ratio – The credit utilization ratio tells how much credit you are using out of the allotted limit. Ideally, the credit utilization ratio should be under 30%. A higher credit utilization ratio might seem like there are a lot of financial responsibilities that you are trying to fulfill and can adversely impact your credit score.
- Report any errors in your credit report – Your credit report may have some mistakes which wrongly show a high DPD. A high DPD can affect your credit score negatively hence you must report the error immediately. You can do that by writing to the customer care of the respective credit bureau.
- Keep your credit accounts active – It is best to keep your good credit accounts active as they are proof of your good financial discipline. Lenders look at it as an assurance that your future debts will be repaid in the same discipline.
- Maintain a good credit history – Something that you should always be trying to do. Making your payments on time, maintaining a good credit utilization ratio and a good credit mix, keeping loan applications to a minimum, etc. are ways to ensure that your credit history is good.
Conclusion
Days Past Due (DPD) is the number of days that have passed after your payment due date. DPD is very important in maintaining a good credit score. You can find the DPD against each of your credit products in the CIBIL™report. You can maintain a good DPD by paying your dues on time. Check your credit report regularly and if you find any errors, those should be reported to the credit bureau immediately.
FAQ of What is Days Past Due (DPD) in CIBIL™ Report?
1:What are Days Past Due (DPD)?
Days Past Due (DPD) are the number of days gone by since the payment due date.
2:What value of DPD is considered good?
A DPD value of “0” or “STD” is considered to be good because it means you haven’t missed any payment due dates.
3:What does “XXX” mean in DPD?
“XXX” means that the banks/lenders haven’t provided any credit-related information to the bureau.
4:Does a bad DPD impact my credit score?
Yes, a bad DPD is considered as your incapability to pay your dues on time and hence brings your credit score down.
5:Where can I check my DPD score?
You can check your DPD score in your credit report under the “Payment History” section. Every credit instrument that you have will have a separate DPD score.
6:What does LSS mean in DPD?
LSS are the accounts that are identified as losses and the amount due on them cannot be collected.
7:When will I see DPD in my report?
You will see DPD in your report when you have missed the payment due date by a minimum 30 days.