What steps can I take to prevent DPD appearing again on my credit report?

The best way to avoid this from happening is to always pay your bills on time and avoid taking on excessive debt. Just so that you are always able to honor your loan obligations.

However, there is a situation where you may face some difficulty.

Over the years, some of us may have built a collection of credit cards from various Loan providers. Some of us have used these, while others may have stored the credit cards in a file or drawer at home for future use and completely forgotten about them. Having too many credit cards makes us unable to track the various Terms & Conditions that we have agreed to, during the application process. Some of the credit cards bear no annual fee in the first year. However, in the second year, annual fee is charged to the credit card. You may have forgotten about the credit card, but the fee and interest keeps accruing to your account and you only find out about it when your loan application is rejected. This happens because eventually, the loan provider has to write off the amount and report it to CIBIL. You then have to take it up with the loan provider and CIBIL which unnecessarily holds up your loan application.

So, how do you avoid this? If you have any sort of credit facility, you must keep track of your credit profile by reviewing your credit report 2-3 times each year. This will ensure that you detect and resolve any credit related problems well in advance.