What is Days Past Due (DPD) in the CIBIL Report?

Estimated reading time: 4 minutes

In India, your credit score is a crucial factor that determines your creditworthiness. One of the key elements that can significantly affect your CIBIL score is the “Days Past Due” (DPD).

If you are looking to take a loan, apply for a credit card, or improve your financial health, you must understand DPD. In this blog, we’ll explore what DPD is, how to calculate it, and why it matters to your CIBIL score.

Days Past Due (DPD) in CIBIL Reports

Days Past Due (DPD) refers to the number of days a borrower has delayed making a payment beyond the due date. If you miss the payment on your credit card or loan, the DPD reflects how late the payment is. Lenders report this information to CIBIL (Credit Information Bureau India Limited), which maintains records of your credit history.

Your CIBIL report shows your DPD as a number representing the days your payment is overdue. The DPD value in your CIBIL report can range from ‘000’ to specific numbers indicating the delay in days.

Here’s what different DPD values mean:

• ‘000’: Indicates timely repayment with no dues.
  
• ‘XXX‘: Means the lender hasn’t provided payment history details.
  
• Specific numbers (e.g., ’30’, ’60’): Shows the number of days payment was delayed.
  

How DPD is Calculated and Reported?

The calculation of DPD is straightforward:

DPD = Actual Payment Date – Due Date

For example, if your EMI is due on the 5th of every month, but you pay on the 26th, your DPD for that month would be 21 days.

DPD is reported monthly in your CIBIL report and shows your payment history for the last 36 months or 3 years. Lenders use this information to assess your repayment behaviour and creditworthiness.

Impact of DPD on Your CIBIL Score

Your DPD has a direct and significant impact on your CIBIL score. Besides, timely payments keep your DPD at ‘000′, which helps maintain or improve your credit score. On the other hand, frequent delays can result in a poor score, making it harder for you to secure loans or credit cards in the future.

Here’s how DPD affects your creditworthiness:

• DPD of 0: No negative impact. Your CIBIL score remains stable or may even improve over time.
  
• DPD of 30-60: Your score might see a small drop, but repeated occurrences will worsen the impact.
  
• DPD of 90 or above: Significant decline in your CIBIL score, leading to also fewer credit opportunities, higher interest rates, or outright rejections from lenders.
  

What to Do If Your DPD Is High?

If you find your DPD is high, take these steps to improve your credit standing:

1. Pay off overdue amounts: Clear any pending dues immediately to prevent further damage to your credit score.
   
2. Contact your bank: If you’re confused about your DPD, reach out to your bank’s customer service for clarification.
   
3. Report discrepancies: If you find any errors in your credit report, immediately report them to the credit bureau with relevant details.
   
4. Seek professional advice: Additionally, consider consulting a financial advisor to help manage your debts and improve your credit score.
   

How to Prevent a High DPD in CIBIL?

Preventing a high DPD is key to maintaining a healthy credit score.

Here are practical steps to avoid falling into DPD issues:

• Set reminders for payments: Use automated reminders to ensure you never miss due dates.
  
• Opt for automatic payments: Set up auto-pay for your credit card and loan payments to avoid manual delays.
  
• Budget effectively: Ensure you have enough funds for upcoming payments to avoid late fees and DPD entries.
  
• Use credit responsibly: Only borrow amounts you can repay on time, and avoid over-reliance on credit.

Being proactive about your payments can also help you avoid the stress of a high DPD and the financial consequences that come with it.

---

Conclusion

To conclude, Days Past Due (DPD) in your CIBIL report plays a critical role in determining your credit health.  Try to keep your DPD at ‘000’ to maintain a good CIBIL score, which will improve your chances of securing loans and credit at favourable terms. If your DPD is high, take immediate steps to resolve it and ensure timely payments in the future to prevent further damage.

---

Frequently Asked Questions