What is DPD in a credit report and why does it matter?

Credit cardholders and loan borrowers need to ensure the repayment is made before or by the due date. Timely payments help in maintaining and/or improving the credit score. A good credit score is important for getting new credit cards and loans. While processing new credit applications, banks look at the applicant’s past repayment track record. It can be tracked through the Days Past Due (DPD) parameter in the credit report. 

In this article, we will understand what is DPD, various values reflected under DPD status in the credit report, and their implications.

What is the DPD status in a credit report?

The Days Past Due or DPD status in a credit report reflects the number of days by which a credit cardholder or loan borrower has delayed a repayment. Banks report the repayment status for credit card outstanding and loan EMIs to Credit Information Companies (CICs) like CIBIL on a fortnightly basis as per RBI guidelines.

The CICs like CIBIL process the information and update it in the individual’s credit report. The credit report gives a month-wise repayment status of every credit instrument availed by the borrower. For example, suppose an individual holds a credit card from HDFC Bank. The credit report will reflect the monthly payment status for the card. The status is displayed month-wise for the last 36 months, starting from the latest month.

DPD status in credit report

Let us understand how the DPD status is reflected in the credit report and the meaning of each status. The month-wise DPD status in the credit report shows one of the following.

DPD status 0: When the DPD status for any month is displayed as 0, it means the repayment has been made before or by the due date. You must always aim to make every repayment before or by the due date. When you do that, the bank reports the DPD status as 0 to the CIC, and the CIC further updates the same as 0 in your credit profile. When you make timely repayments month after month, you demonstrate a good repayment track record.

The DPD status as 0 reflects good credit behaviour. When you apply for a new credit card or loan, the bank will check your credit report for the past payment track record. When they see a good payment track record, the chances of the credit application getting approved increase.

Timely repayments have the highest weightage in the calculation of your credit score. Thus, when your DPD status is 0 with every passing month, it contributes towards improving your credit score.

DPD status XXX: In some months, you will see the DPD status displayed as XXX. It means, the bank has not reported your repayment status for that particular month to the CIC. You don’t have to worry about it, as it doesn’t have any negative implication on your credit score.

If your DPD status is anything other than 0 or XXX, you need to check further. Before we look into these statuses, let us understand how the DPD is calculated in the event of delayed repayment(s).

DPD calculation

Whenever a loan EMI or credit card outstanding is delayed beyond the due date, the DPD is calculated as follows. The DPD is the difference between the current date and the due date. For example, suppose the current date is 1st May 2025, and the loan EMI repayment date was 1st April 2025, and the EMI repayment is still pending.

The DPD will be the number of days between the current date and the EMI repayment due date. In this case, the DPD will be 30 days. The bank will report the 30 days repayment delay to the CIC, and the CIC will update the DPD as 30 days in the borrower’s credit report. Any repayment delay will impact your credit score negatively.

DPD status for delayed payments

Now, let us understand the DPD status for a delayed repayment. Depending on the duration for which a repayment has been delayed, the DPD status will be as follows.

• STD: The DPD status as STD or Standard means the repayment delay is less than 90 days. Every repayment delay impacts the credit score negatively. However, as the account is still standard, the impact may be less severe.
• SUB: The DPD status as SUB or Sub-standard means the repayment delay is more than 90 days. A credit account where the delay has crossed 90 days is classified as a non-performing asset (NPA) as per RBI guidelines.
• DBT: The DPD status as DBT or Doubtful means it has remained a Sub-standard account for a period of 12 months. The probability of collection from a doubtful account is low.
• LSS: The DPD status as LSS or Loss means a loss has been identified and remains uncollectible.

Impact of DPD status on new credit applications

When you apply for a new credit card or loan, the bank will check your credit score and profile. In the credit profile, they will check the DPD status of your existing/closed credit cards and loans. If the DPD status of all past repayments is either 0 or XXX, it will be viewed positively. The chances of the new credit application getting approved will increase.

If the bank comes across any DPD status apart from 0 or XXX, it will check further details. A DPD status like STD, SUB, DBT, LSS, etc., can reduce the probability of the new credit application getting approved.

How to increase and maintain a good credit score?

You need a good credit score to improve the chances of your credit card or loan application getting approved. Some steps to increase and maintain a good credit score include the following.

• Timely repayments: Always pay the credit card outstanding and loan EMI before or by the due date. It will ensure the DPD status is 0.
• Lower credit utilisation ratio: The credit utilisation ratio measures the percentage of credit used from the available credit limit. A credit utilisation ratio of 30% or lower is considered good.
• Healthy credit mix: An individual should have a healthy credit mix of secured loans (for example, home loan, vehicle loan, etc.) and unsecured loans (for example, credit card, personal loan, etc.)
• Make one credit application at a time: An individual should make one credit application and wait for the bank to give its decision. Making multiple applications within a short period is considered credit-hungry behaviour by banks.

An individual should check their credit report regularly. They should monitor the DPD status and other details. If the DPD status is anything other than 0 or XXX, it should be checked further. Always make timely payments so that the DPD status is 0. It helps in contributing towards increasing the credit score and maintaining it healthy. It also increases the chances of new credit applications getting approved.

Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.