Courtney C. Lipsey “Days past due” (DPD) represents the complete amount of days you’ve missed paying the payment to your credit card or EMI payment or loan repayments, for example. If your charges were punctual, they will be reflected in the DPD value and will be displayed at “0”. If, however, you have been late by, say, 30 days, then your DPD value will be “30” against your previous month’s report. “0” or “STD” are the only two categories that are deemed to be good by lenders. “STD” or standard is when the payment is paid within 90 days of the date they were made.
Importance of Days Past Dues (DPD)
DPD is the metric which will reveal the repayment record of your credit. It is among the most crucial factors when formulating your credit score. Every missed payment will be reflected in DPD and could be interpreted by lenders as an inability to pay your bills. A missed payment over a time frame can place your account into the category of substandard, which can lower your credit score. Sometimes, missed payments could harm your DPD and, consequently, your credit rating.
What values are acceptable for Days Past Due (DPD)?
A DPD shouldn’t be excessively high to know for certain. Good or bad, DPD will depend on the credit score. For example, when it comes to credit cards, a DPD shorter than 30 days would be acceptable. When it comes to a home loan, 90 days is a good time.
What date can you expect to be able to see Days Past Due (DPD) in your report?
DPD will be listed on your credit report if you fail to meet your payment due date within 30 calendar days. The credit bureau changes it to “30” for that particular month. If you don’t make the deadline for two consecutive months, the credit bureau will display it with the number “60”. This could result in a negative effect on your score. If you fail to make your payment by more than three months, the amount is transferred from a regular account to an account that is not standard.
What is the best way to locate Days Past Due (DPD) in your credit file?
Let’s take a look at this step-by-step guide —
- Click on and open the “Payment History” section of the CIBIL(tm) report.
- Check out all credit products that you have, like credit cards, home loans, education loans, or personal loans.
- DPD will be mentioned in relation to each of them over the last 36 months.
Methods to increase your credit score by having the highest Days Past Due (DPD)
If you see a large DPD on the credit file, be sure that you review the report thoroughly.
You can increase your credit score in the following ways:
- Pay your bills on time. Be sure that you pay all your bills on time, by the deadline. The balance of your debt should be paid within 90 days to boost your DPD. This is the most crucial step you can make to ensure that your credit score is slowly improving.
- Keep your ratio for credit utilization. Your credit utilization rate reveals the amount of credit you’re making use of out of your allotted amount. The ideal rate of utilization should be less than 30 percent. A higher ratio of credit utilization could suggest there are many financial obligations you are trying to complete, which may affect your score on credit.
- Report any mistakes on your credit file. Your credit report could have errors that incorrectly show the presence of a high DPD. A high DPD can impact the credit rating negatively, so you should be sure to report the error as soon as you notice it. It is possible to do this by writing to the customer support of the credit bureau you are using.
- Maintain your credit accounts open. It is recommended to keep your credit accounts open as they show your financial discipline. The lenders view it as a guarantee your debts in the future will be repaid in the same way.
- Maintain a positive credit history. Something you should always strive to achieve. Being punctual with your payments and maintaining a high credit utilization ratio, a good credit mix, limiting the number of loan requests to the minimum, and so on. are methods to ensure that your credit rating is excellent.
What is DPD? What is DPD? DPD (also known as Days Past Due is the number of days that have passed since the date of payment due.
Importantity of DPD The importance of DPD DPD, is crucial as it is a gauge of your credit history and directly impacts your credit score.
Conclusion
Days Past Due (DPD) is the amount of days from the date of your due date for payment. DPD is crucial to maintaining a high credit score. It is possible to find the DPD for each credit item within the CIBIL(tm)report. You can keep your good DPD by making sure you pay your bills on time. Examine your credit report on a regular basis, and if you spot any errors, these must be reported to the credit bureau as soon as possible.
