What is the Impact of Days Past Due (DPD) on your Credit Report?

What is the Impact of Days Past Due (DPD) on your Credit Report

What is the Impact of Days Past Due (DPD) on your Credit Report?

There are many factors which affect the credit score and then, directly affects your credit report. One of those factors are Days Past Due (DPD). In this article, you will find out the Impact of on your Credit Report.

What is DPD (Days Past Due)?

This term is referred to the number of days of a borrower has missed their payment due date. When a borrower misses a payment, it can have a significant impact on their credit report, which is a record of the person’s credit history.

It is a significant factor in determining a person’s credit score, which is a three-digit number that represents a person’s creditworthiness. The credit score is based on several factors but the most crucial one is the payment history as it contributes to the credit score and it also represents 35% of the score.

When a borrower misses a payment due date, the lender will report the delinquency to the credit reporting agencies, which will then appear on the borrower’s CIBIL report. The longer the borrower goes without making the payment, the more severe the impact will happen on their CIBIL report.

Days Past Due (DPD) can stay on a person’s CIBIL report for up to 7 years from the date of the first missed payment. This basically means that even after the borrower has paid off the debt, the delinquency will still appear on their credit report for up to 7 years, which can in return have a negative impact on the CIBIL report.

How much significance does Days Past Due (DPD) hold in Banking?

DPD typically shows how much disciplined the person has been in terms of making the EMI payments in the past. As it consists of the timeline of the last 36 months. DPD is a crucial metric in the banking industry, that measures the number of days that a borrower has failed to make a payment on their loan or credit facility. It is a key performance indicator for lenders and helps them to identify potential risks and take appropriate actions to minimize their losses.

The significance of DPD can be gauged by the fact that it is used as a primary tool to assess the creditworthiness of borrowers. Lenders use this metric to evaluate the credit risk associated with a borrower and decide whether to approve or reject a loan application. Additionally, lenders also use DPD to track the performance of their loan portfolio and to identify potential delinquencies before they turn into defaults.

The DPD metric is also significant in the regulatory framework governing the banking industry. Regulatory authorities such as central banks require banks to maintain a certain level of loan quality and to report on the status of their loan portfolio regularly. DPD is an essential component of the reporting process as it provides an accurate picture of the credit risk associated with the loan portfolio.

The use of DPD is not limited to the banking industry alone. It is also widely used in the insurance industry to assess the risk associated with the policyholders, who have missed their premium payments. DPD helps insurance companies to identify potential risks and take appropriate actions to minimize their losses.

What are the different values of Days Past Due?

These DPD values are often used to assess the creditworthiness of a borrower or a company. It is also used to determine the level of risk associated with lending money to them. In general, the longer the payment is past due, the greater the risk of default, and the more the severe the consequences can be for both the borrower and the lender.

In finance and accounting, there are several different DPD values that are commonly used. Including –

  • 30 DPD – This is when a payment is 30 days late.
  • 60 DPD – This is when a payment is 60 days late.
  • 90 DPD – This is when the payment is 90 days late.
  • 120 DPD – This is when the payment is 120 days late.
  • 180 DPD – This is when the payment is 180 days late.   

Then, there are other values which can be found on the credit report such as 

  • 000 – This value basically portrays that all the EMIs of the month have been paid on time and don’t have any outstanding dues remaining for that month. This is considered to be the safest value to have on the report.
  • XXX – This is a scenario in which the lender doesn’t provide any data with regards to the repayment CIBIL, at that time this value is shown in the report. In this case, the applicant is considered to be safe and it also doesn’t impact the candidate’s profile.
  • STD – This value is the indication of ‘Standard Payment’ which means that the payment was made within 90 days of the due date.
  • SUB – This value is known as ‘Sub Standard Payment’ which means that the payment was made more than 90 days after the due date.
  • DBT – DBT is the value which means ‘Doubtful’ and this value indicates that the payment has remained sub-standard for over a year.
  • LSS – The value basically indicates that the chance of the lender receiving the payment from the borrower is little and this value is known as ‘Loss’.

What is the actual impact of Days Past Due (DPD) on your Credit Report?

The impact of late payments can be quite significant. Your credit score is a measure of your creditworthiness which lets the lender determine whether they should approve you for credit or a loan. A high credit score indicates that you are a low risk borrower, whereas a low credit score indicates that you are a high-risk borrower. The number of payment default on your CIBIL report can impact your credit score in several ways.

• Late Payment Fees:

When you make a payment that is past due, the creditor may charge a late payment fee. This fee can vary depending on the creditor and the type of payment.

• Increased Interest Rates:

Late payments can also result in the interest rates getting increased. If you have a credit card or a loan, the creditor may increase the rate of interest if there is a history of making late payments. This led to you paying more in interest charges over the life of the loan or credit card.

• Negative Impact on Credit Score:

The most significant impact of days past due on credit reports is a negative impact it takes on your credit score. Late payments are reported to credit bureaus and they can remain on your report for up to 7 years. The longer the payment is past due, the more significantly it can affect your credit score. A single late payment can cause a drop in the score by as much as 100 points or even more.

• Denial of Credit:

The number of days of late payments on your CIBIL report can also impact your ability to get credit in the future. Lenders and creditors may see a history of late payments as a red flag. They may be less likely to approve the application for credit. Even if it is approved, the offer will be of less favourable terms, such as higher interest rates or lower credit limit.

How to minimize the impact of Days Past Due (DPD) on your Credit Report

There are certain steps that can be taken in order to minimize the impact on your Credit Report 

• Paying your bills on time

The easiest way to avoid the negative impact, is by paying your bills on time. It is really important to set reminders and automatic payments to ensure that you don’t miss any payments.

• Prioritizing your payments

If you have multiple accounts with different due dates, make sure to prioritize the payments for the accounts that are most important, such as mortgage or car loan. This can help you avoid missing payments and accruing DPD.

• Contact your Creditors

If you are having trouble making payments, contact your creditor to discuss the options. They may be able to work with you to set up a payment plan or make other arrangements.

• Check your Credit Report

Regularly review your report to make sure there are no errors or inaccuracies that could be negatively impacting your credit score. If you find an error, contact the credit bureau to have it corrected.

By taking these steps, you can help minimize the impact of DPD on your credit report and maintain a good credit score.


In Conclusion, the impact of Days Past Due (DPD) on your credit report, can be crucial and long-lasting. Late payments can lower your credit score, making it more difficult to obtain credit and loans in the future. It is important to make every effort to make payments on time and to contact your creditors if you are struggling to make payments in order to avoid the negative consequences of delinquency.