In the context of a credit report, especially in India, CIBIL (Credit Information Bureau (India) Limited) is one of the leading credit bureaus that provides credit scores and reports. Days Past Due (DPD) is a critical component within a CIBIL report, offering insights into an individual’s or entity’s credit behaviour and payment history. Here’s a detailed look at how DPD is represented in a CIBIL report.
See also:Â How to get loan without CIBIL score?
What is Days Past Due (DPD) in CIBIL?
DPD terminology
CIBIL categorises DPD into buckets to indicate the day’s payment is overdue. Commonly, these buckets include 0, 1-30, 31-60, 61-90 and 90+ days.
Data source
DPD information is collected from various credit accounts, such as credit cards, loans and other credit facilities. Each reported credit account will have its DPD status.
Credit types included
DPD applies to a wide range of credit facilities, including credit cards, home loans, personal loans, auto loans and other forms of credit.
What are the different periods of DPD?
0 (Zero) days DPD
Indicates that the payment was made on or before the due date. This is considered an optimal scenario and contributes positively to the individual’s creditworthiness.
1-30 days DPD
This reflects a mild delay in payment, suggesting a short-term oversight. While it may not severely impact the credit score, consistent occurrences could lead to negative consequences.
31-60 days DPD
Indicates a moderate delay in payment. Lenders may view this as a potential risk, which can start affecting the individual’s credit score and overall creditworthiness.
61-90 days DPD
Suggests a significant delay in payment. This can lead to a notable negative impact on the credit score and may raise concerns for lenders regarding the individual’s ability to manage debt responsibly.
90+ days DPD
This represents a severe delay in payment and is a red flag for lenders. This significantly damages the credit score and makes it challenging for the individual to secure new credit. The account may be categorised as a non-performing asset.
What are different credit types of DPD?
Credit cards
DPD on credit card payments is closely scrutinised. Consistently high DPD may lead to reduced credit limits, increased interest rates, or even the suspension of the credit card.
Loans (Personal, home, auto, etc.)
DPD on loan payments can impact the individual’s ability to secure new loans. Lenders may consider the repayment history when evaluating loan applications.
Overdraft facilities
DPD on overdraft accounts may lead to changes in terms and conditions, including increased fees and interest rates.
How is DPD represented in a CIBIL report?
Tabular format
The DPD information is often presented in a tabular format within the credit report, showcasing the payment history for each credit account.
Colour codes
CIBIL reports may use colour codes to visually represent the DPD status. For instance, a green code might indicate timely payments, while a red may highlight overdue payments.
Account summary
The CIBIL report typically includes an account summary section that provides an overview of DPD across all reported accounts, helping lenders assess the overall creditworthiness of an individual or entity.
What is the impact on credit score?
Negative influence
DPD has a direct impact on the credit score. Higher DPD, especially in the 31-90 day and 90+ day buckets, can significantly lower the credit score.
Long-term consequences
DPD records stay on the credit report for a certain period, and consistently high DPD can have long-term consequences on an individual’s ability to secure credit.
How to manage DPD in the CIBIL report?
Timely payments
Ensuring timely payments is crucial to maintaining a positive DPD status and preserving a good credit score.
Dispute resolution
In case of any inaccuracies or discrepancies in the DPD information, individuals can dispute the records with the credit bureau for correction.
Communication with lenders
Communicating with lenders in case of financial challenges and exploring options like restructuring or settlement can help manage DPD.
How to regularly monitor DPD?
Check frequency
Regularly monitoring the CIBIL report allows individuals to stay informed about their DPD status and take corrective actions if needed.
Alerts and notifications
Some credit monitoring services provide alerts and notifications for changes in DPD status, enabling individuals to address issues promptly.
FAQs
How is DPD represented in a CIBIL report?
DPD is presented in a tabular format, indicating the payment history for each credit account. Colour codes may be used to visually represent DPD status.
What should I do if I have a high DPD in my credit report?
Communicate with lenders, explore flexible repayment plans, and consider credit counselling. Timely payments and responsible credit management can help improve DPD over time.
Can I dispute DPD information on my credit report?
Yes, individuals can dispute inaccuracies or discrepancies in DPD information with the credit bureau for correction.
How long do DPD records stay on my credit report?
DPD records stay on the credit report for a certain period, typically seven years. However, consistently responsible credit behaviour can contribute to gradual improvement.
What do different DPD categories mean in a CIBIL report?
Categories include 0, 1-30, 31-60, 61-90, and 90+ days. Each category signifies the number of days a payment is overdue, with higher categories indicating more severe delinquency.
How does DPD impact my credit score in a CIBIL report?
Higher DPD, especially in the 31-90 day and 90+ day categories, can significantly lower the credit score, making it challenging to secure new credit.
How can I rebuild my credit after a period of high DPD?
Make timely payments, settle outstanding debts, and work on improving your overall credit management. Seeking credit counselling may also provide helpful guidance.
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