The full form of DPD is Date Past Due. DPD shows how many days a borrower has gone without making an EMI or credit card payment. It serves as a key indicator of your financial history on your credit report. It shows if you have been consistent with your payments and, if you have, how many installments and by how many days you have missed.
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Additionally, DPD shows a candidate’s history of credit card payback. For each market borrowing, the applicant is given a unique DPD that is produced in their name. The DPD will be on your report for the following three years if the lender is unable to repay even one installment.
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Significance of DPD in your CIBIL Report
DPD demonstrates how consistently you have made EMI payments in the past. It includes a history of your payments going back 36 months. The lender investigates your credit application and looks at your prior payment history. If your DPD is ‘000’ for the whole 36-month period, it demonstrates that you have sensibly and on-time paid all of your credit dues, reducing the risk to the lender.
When deadlines are missed, it can sometimes negatively impact your credit score and trustworthiness, but some lenders may still approve your credit application. However, persistent late payments and frequent missed payments put lenders at risk, and they can decide against processing your loan or credit card applications.
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