Credit reports, maintained by agencies like CIBIL, offer insights into your financial history. CIBIL collects data and assigns credit scores based on payment behaviour.
Terms like STD (Status), LSS (Last Status), and DPD (Days Past Due) indicate payment behaviour and creditworthiness. STD reflects current loan status, LSS denotes the most recent status, and DPD shows the number of days a payment is overdue.
Understanding these terms helps you improve credit score by making timely payments and maintaining a positive credit history.
What is STD in CIBIL?
In CIBIL reports, STD, or 'Standard,' represents a credit account where timely payments are consistently made without delays. This acronym, standing for Standard, is crucial for assessing an individual's creditworthiness. When your CIBIL report shows an STD, it signifies a commendable repayment history.
It is located in the account details section, it offers key information such as the account name, account number, type of credit, outstanding balance, and payment history.
The "STD" remark next to an account stands for "Standard," signifying that you've been consistently making regular and timely payments.
Having an STD in your credit report is positive, indicating responsible financial behaviour. It assures lenders that you diligently manage your credit obligations. This positive remark contributes to a favourable credit score, a key factor for securing loans and favourable interest rates.
What is LSS in CIBIL?
LSS in CIBIL reports stands for Lender Settled Status and carries significant implications for borrowers. It indicates that a borrower has settled a credit account with the lender by paying a reduced amount, usually through negotiation. LSS is considered a negative remark on the credit report as it reflects a partial settlement of the debt. It affects the individual's credit score.
Lenders categorise their assets based on payment behaviour and account status. LSS classifications typically include Standard, Substandard, Doubtful, and Loss categories, determined by the lender's internal policies.
Here's a breakdown of the types of asset classification of LSS in CIBIL reports:
- Standard: Accounts classified as standard are those where borrowers have consistently met their payment obligations as per the loan agreement.
- Substandard: Substandard accounts indicate that the borrower has defaulted on payments, leading to concerns about the full recovery of the loan amount.
- Doubtful: Doubtful accounts are those where the likelihood of full repayment is highly uncertain, often due to prolonged default or financial instability.
- Loss: Loss accounts represent loans where the lender has deemed the full amount irrecoverable, typically after exhausting all avenues for repayment.
Having LSS listed on your credit report can make it challenging to borrow loans and Credit Cards from lending institutions. Lenders may be more cautious about extending credit to individuals who have not repaid their debts in full.
What is DPD in CIBIL?
DPD in CIBIL stands for 'Days Past Due,'. It is an important metric in assessing credit behaviour. It signifies the number of days a borrower's payment is overdue, providing insights into their payment delinquency.
Days Past Due (DPD) is presented in a simple table format for easy understanding. This tabular format includes essential details such as the account name, account number, date of last payment, current outstanding balance, and the crucial DPD column. Let's break down the components of the DPD format:
- Account name: This identifies the specific credit account associated with the payment details.
- Account number: An identifier for the credit account.
- Date of last payment: Indicates the date of the most recent payment made on the account.
- Current outstanding balance: The amount still owed on the credit account.
- DPD (Days Past Due): The highlight of the table, this column signifies the number of days a payment is overdue.
CIBIL categorises DPD into buckets like DPD 30, DPD 60, DPD 90, etc., based on the extent of delay.
For example, DPD 30 implies a 30-day delay, while DPD 90 indicates a delay of 90 days or more. Higher DPD numbers correspond to longer delays. Keep your DPDs to a minimum to maintain a positive credit history.
Difference between STD, LSS, and DPD in CIBIL
Here's a breakdown of the differences between STD, LSS, and DPD in CIBIL reports:
STD (Status):
- Indicates regular and timely payments.
- Reflects positive credit behaviour, showcasing reliability in loan repayments.
LSS (Last Status):
- Represents a settlement with the lender for a reduced loan amount.
- Settling for less than the full amount owed can negatively impact creditworthiness.
DPD (Days Past Due):
- Measures the number of days a payment is overdue.
- Higher DPD values indicate longer delays in payments, adversely affecting credit scores.
Understanding these distinctions is crucial for interpreting CIBIL reports accurately. While STD signifies responsible credit management, LSS suggests compromised repayment terms, and DPD highlights payment delinquency.
| Term | Meaning | Implication |
| STD | Regular and timely payments | Positive credit behaviour |
| LSS | Lender Settled Status | Repaying reduced credit amount, affecting credit score |
| DPD | Days Past Due | Indicates outstanding days of payment, adversely affects credit score |
Advantages of Resolving DPD, STD, and LSS
Resolving DPD, STD, and LSS remarks on your credit report offers several benefits. By addressing these components, you can enhance your financial health and increase your creditworthiness. Here are the key advantages:
- Better Creditworthiness: Monitoring and resolving DPD, STD, and LSS remarks help manage your credit health. This, in turn, improves your credit score, increasing your chances of loan approval from financial institutions.
- Timely Dispute Resolution: Identifying discrepancies and resolving them promptly prevents negative impacts on your credit report. This proactive approach ensures that your credit history remains accurate and favourable.
- Improved Loan Approval Chances: Resolving DPD, STD, and LSS issues enhances your eligibility for Personal Loans. Banks and financial institutions are more likely to approve your loan application and you will also get an 811 Credit Card easily.
Conclusion
Terms like DPD, LSS, and STD in your CIBIL report let you oversee and improve your credit score. Understanding these is important to maintain a positive repayment track record and secure credit at favourable interest rates.
Regularly monitoring your credit score will help you keep it above 750. With a high credit score, you can get a Personal Loan with interest rates starting from 10.99% p.a. Take advantage of Kotak 811 offers and fulfil your dreams with confidence.
FAQs
1. What is the significance of STD in CIBIL?
STD, or 'Standard,' in CIBIL reflects a commendable repayment history. This positive remark assures lenders of your responsible financial behaviour, contributing to a favourable credit score.
2. How does LSS impact credit reports?
LSS, or Lender Settled Status, indicates partial settlement of a credit account. This negative remark on the credit report reflects a negotiated settlement with the lender, impacting creditworthiness and making loan approvals challenging.
3. What does DPD stand for in CIBIL?
DPD stands for 'Days Past Due' in CIBIL reports. It measures the number of days a payment is overdue. Higher DPD values correspond to longer delays, adversely affecting credit scores.
4. What's the difference between STD, LSS, and DPD in CIBIL?
STD reflects regular payments and positive credit behaviour. LSS indicates a partial settlement, negatively impacting creditworthiness. DPD measures overdue days, with higher values adversely affecting credit scores.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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