What is DPD in CIBIL Report - Full Form, Meaning & Importance

DPD (Days Past Due) is reported by lenders in your CIBIL report based on delays in repayments after the due date. For example, if your credit card bill is due on the 7th of a month, the DPD remains 0 if the payment is made on or before the due date. If the payment is delayed by 2 days, the DPD is recorded as 2, and if delayed by 30 days, it is recorded as 30.

As payment delays increase, the DPD value also rises. Lenders submit this information to the credit bureau, where it appears in the DPD section of your CIBIL report. Repeated late payments reflected as higher DPD values can negatively impact your credit score and weaken your overall creditworthiness.

Why DPD in CIBIL Report Matters for Loan Approval?

Lenders take a look at your record of payments and the way you pay back the loan or card. Here is the effect of DPD on your financial profile:

• A single missed payment recorded as DPD can cause a temporary drop in your credit score.

• Multiple delayed payments lead to a significant decline in your CIBIL score, damaging your financial credibility.

• High DPD values negatively impact approvals for personal loans, other unsecured loans, and credit card approvals.

• Lenders may offer smaller loan amounts or higher interest rates to borrowers with DPD entries.

• A clean DPD record improves your chances of faster approvals and better loan offers.

In short, your CIBIL score is important when it comes to every credit application. Timely payment and responsible credit behaviour will ensure that DPD is at zero.

How to Clear DPD in CIBIL Report: Step-by-Step Process

A lot of borrowers are in search of a way to clear DPD in the CIBIL report following late payment. You cannot remove valid DPD records; however, they become less impactful over time with consistent, timely payments.

Step 1: Clear All Overdue Payments Immediately

Make all outstanding payments of loan EMIs, credit card bills, and other outstanding payments without wasting more time. Making the outstanding payments will prevent further entries of DPD and avoid further harm to your credit profile. The first accounts to be considered are those that have the highest DPD.

Step 2: Maintain Consistent Timely Payments Going Forward

Once the past payments have been cleared, make sure all succeeding credit payments are made on or before the due date. Provide automatic payment of all loan EMIs and credit card payments to eliminate time delays in payments. Timely payments of above 6 to 12 months, in stages, repair your credit profile and raise your CIBIL score.

Step 3: Review Your CIBIL Report Regularly for DPD Errors

When you request your CIBIL report regularly, you can identify any DPD information or wrong data entry. At times, the lender notifies the credit bureau of erroneous payment information. In case of any false entries in DPDs, dispute them with TransUnion CIBIL on their online platform. Send payment receipts and supporting documents to be checked.

Step 4: Manage Credit Utilisation and Credit Mix

Maintain low credit utilisation of less than 30% of your total credit limits in all your credit accounts. Have a good credit balance between secured and unsecured credit products. Having good credit management and zero DPD entries will also benefit your credit profile and will create a longer credit history in the long run.

Read Also: Why Your CIBIL Score is Low Despite Paying Bills On Time

How DPD Entries Impact Your Credit Score and Loan Eligibility

DPD impacts your payment history, which is a key factor in calculating your CIBIL score. One payment default results in a premortem score loss. Several missed instalments cause a significant decrease that damages your chances of future loan approval. Before financial institutions approve a new credit application, the financiers consider the repayment history and the behaviour exhibited by the individual in terms of credit.

Customers who have a good CIBIL score and zero DPD find it easier to get loans, have a good loan structure, lower interest rates and flexible loan terms. Individuals with high values of DPD are rejected or made to have stricter conditions. Having an excellent CIBIL score with a clean history of payments leads to the availability of personal loans, house loans, and credit cards with the most favourable terms.

Tips to Maintain a Healthy CIBIL Report

Maintaining a strong CIBIL score requires financial discipline and responsible credit management. Follow these practices to keep your credit health intact:

• Pay all loan EMIs and credit card bills at the scheduled times. Set up automatic payments to avoid any payment delays.

• Keep credit utilisation below 30% of your total credit limit. High utilisation over extended periods will decrease your credit score.

• Check your CIBIL report regularly to find DPD errors, incorrect entries, and monitor your repayment history.

• Avoid applying for multiple loans or credit cards in a short period. Excessive credit enquiries negatively impact your credit profile.

• Manage credit responsibly by maintaining a balanced credit mix and handling all credit obligations responsibly.

How to Dispute Incorrect Entries in Your CIBIL Report

If you discover DPD errors in your CIBIL report that do not match your actual payment records, take the following steps to resolve them:

• Download your detailed credit report from TransUnion CIBIL and identify the specific DPD entries that are incorrect.

• Gather payment details, bank statements, and receipts that prove the payments were made on time.

• Raise a dispute through the official TransUnion CIBIL website. Submit all supporting documents for the credit bureau to verify.

• Corrections are typically processed within 30 days, depending on lender verification.

Correcting DPD errors restores your accurate credit history and can significantly improve your CIBIL score and financial health.

To Conclude

DPD (Days past due DPD) on the CIBIL Report is a crucial indicator of the timely repayment behaviour of borrowers. When DPD is high, it affects your credit score and creditworthiness, and adds up to a reduced chances of credit approval.

To remove DPD on the CIBIL report, clear all your outstanding payments in a very short time, make all repayments on time using auto-debit payment methods, and ensure that you check your CIBIL report to see DPD errors. Good credit behaviour, low credit usage, and payment on time are the pillars of a good CIBIL score and good financial health. Visit the Poonawalla Fincorp website to check your CIBIL score online.

FAQs

What does DPD mean in a CIBIL report?

DPD stands for Days Past Due. The term shows the total number of days that a payment stays unpaid.

Does DPD affect CIBIL score?

Yes. The credit score suffers when delayed payments are recorded as DPD values.

How long does DPD remain in the CIBIL report?

The DPD entries stay visible in credit reports, which show detailed information for three years.

How to clear DPD in the CIBIL report?

You can improve your credit health by paying off all overdue payments and then making all future payments on time.

Can incorrect DPD entries be corrected?

Yes. Borrowers can raise a dispute with the credit bureau through the official CIBIL website.