What does DPD mean? What are the 2 ways in which DPD can be reported?

DPD or Days Past Due appears in the Account(s) section of your CIBIL credit report. Here, it resides with one other piece of information - the month and year of payment. The DPD indicates how many days a payment on that account is late that month. Anything other than “000” is considered negative by a Loan provider. Up to 36 months of this payment history (with the most recent month displayed first) are provided in this section. For example, if you have taken a loan whose payments started in Aug 2010 and are 3 months late on a payment due at the end of Sept 2010, your DPD may be reflected as follows:

DPD                       090         060         030         000         000

Month/Year       12-10     11-10     10-10     09-10     08-10

Given that your credit history helps a Loan provider ascertain your ability to pay additional debt based on your past performance, having DPD other than “000” on your CIBIL credit report would imply that you have not met your financial obligations in the past. Hence, Loan providers may view accounts that are reported with DPD as anything other than “000” negatively and this may affect your chances of a loan approval.

It is important to note that some Loan providers report DPD as follows:

DPD	Denotes	Explanation
STD	Standard	Payments are being made within 90 days. Any account overdue by more than 90 days is classified a Non-Performing Asset (NPA) by lenders
SUB	Sub-Standard	An account which has remained an NPA for up to 12 months
DBT	Doubtful	The account has remained a Sub-Standard account for a period of 12 months
LSS	Loss	An account where loss has been identified and remains uncollectible

Any classification other than “STD” is viewed negatively by Loan providers during the loan application process.

On occasion you may see “XXX” reported for your DPD on a certain account. This means that the Loan provider has not reported that month’s DPD to CIBIL and hence, there’s no need to worry.

The best way to avoid having anything other than DPD of “000” or “STD” on your CIBIL CREDIT REPORT is, to always pay on time and the best way to always pay on time, is to avoid more debt than you can comfortably handle with your current income.