What does the Days Past Due section on CIBIL report mean?
A clear credit report (that is, one that doesn’t have a “written-off” or “settled” entry on it) and a credit score of 750+ are the two important criteria for getting a new loan. However, they are not the only factors considered.
A host of other things also play a role in risk assessment of an individual, chief among them being Days Past Due (DPD for short). Let’s understand what it is and how it affects your credit score.
The Days Past Due (DPD) section explained
Days Past Due for a particular month defines the number of days, expressed in a multiple of 30, for which a payment is due. Each loan you take has its own DPD section.
The CIBIL report contains information for past 36 months. Each month a new entry is added, while the last entry on the report is removed. So for each loan, you will 36 DPD entries in total.
Every month banks and financial institutions share their members’ credit information with CIBIL. Among other key information shared is data regarding how many days worth payment is pending on a loan.
How to read the entry in the DPD section
These three are the most common entries in the DPD section:
000 – This means the payment is current.
XXX – This means the bank has not shared the required data for that particular month
A number in multiple of 30 (30, 60, 90 …) – The number listed indicates how many days worth payment is due for that particular month.
The following example will help you better understand the DPD section:
The DPD data is read from left to right, starting from the latest entry.
In April, ’15, 90 days’ worth (3 months) payment was due; In March, ’15, 60 days’ worth; In Feb, ’15, 30 days’ worth; In Jan ’15 and Dec, ’15, payments were current; and in Nov, ’14, the bank did not send the data to CIBIL.
How DPD impacts your CIBIL score
An entry of ‘000’, which denotes zero outstanding due, has a positive effect on your CIBIL score, while an ‘XXX’ entry has no effect whatsoever on your score. Any number other than ‘000’ has a negative effect on your credit score. The higher the number, the greater the negative effect on your score. So 60 day’s worth payment due will affect your score more badly than a ‘030’ (that is, 30 days’ worth payment due) entry.
Sometimes the data submitted is not expressed in any of the three values discussed above, but is defined in certain terms, like STD, SUB, DBT, and LSS. Only STD entry is positive here; all the rest have a negative effect on your credit score.
How to rectify DPD values?
You cannot do anything about a DPD value present on your report other than wait for it to go away on its own. As mentioned above, your credit report contains data for 36 months. Each month new data is added while the data for the last month is removed. From this month onwards ensure no month has a due payment, and in time your DPD section will be clean and your credit score healthier.