Decoding STD, LSS, and DPD in Your CIBIL Report

When you apply for a loan or credit card, lenders scrutinise your CIBIL report to assess your creditworthiness. The remarks STD, LSS, and DPD in your CIBIL report play a crucial role in determining your eligibility for credit. Understanding what these terms mean and how they impact your credit score is essential for maintaining a healthy financial profile. In this article, we’ll decode STD, LSS, and DPD, explain their implications, and guide you on managing them effectively.

Understanding STD in CIBIL

What Does STD Mean?

STD, which stands for “Standard” in your CIBIL report, indicates that you have been making all your loan or credit card payments on time. It is a positive remark that reflects your disciplined repayment behaviour and reliability as a borrower.

Impact on Credit Score

An STD status has a favourable impact on your credit score. It demonstrates to lenders that you are responsible with your debt obligations, making you a low-risk borrower. Consistently maintaining an STD status can significantly boost your credit score over time.

Maintaining an STD Status

To keep your accounts in STD status, ensure you:

• Pay your EMIs and credit card bills on or before the due date

• Set up automatic payments to avoid missing due dates

• Keep your credit utilisation ratio below 30%

• Regularly check your CIBIL report for any errors or discrepancies

Decoding LSS in CIBIL

What is LSS?

LSS, or “Lender Settled Status,” indicates that you have settled a loan or credit card account by paying an amount less than what you originally owed. This usually happens when you face financial difficulties and negotiate with your lender for a settlement.

How LSS Affects Your Credit Profile

An LSS remark in your CIBIL report can negatively impact your credit score. It suggests that you were unable to repay the full amount, making lenders perceive you as a higher-risk borrower. LSS can make it challenging to secure loans or credit cards in the future.

Recovering from LSS

If you have an LSS status, take these steps to improve your credit profile:

• Obtain a settlement letter from your lender explaining the circumstances

• Make timely payments on all your other accounts to demonstrate responsible credit behaviour

• Gradually rebuild your credit score by using credit responsibly and keeping your balances low

DPD: Days Past Due

What Does DPD Mean?

DPD, or “Days Past Due,” indicates the number of days a payment has been overdue. For example, if your credit card bill was due on the 5th of the month and you paid it on the 25th, your account would show a DPD of 20.

DPD and Your Credit Score

The higher your DPD, the more severe the impact on your credit score. Lenders view high DPD as a sign of financial stress and may be hesitant to offer you credit. Aim to keep your DPD at zero by paying your dues on time.

DPD Buckets and Their Implications

Lenders classify DPD into various buckets:

Improving Your DPD Status

If you have high DPD, take corrective measures:

1. Pay your overdue amounts as soon as possible

2. Set reminders or enrol in automatic payments to avoid missing due dates

3. Communicate with your lender if you’re facing financial difficulties and seek a solution

4. Regularly check your CIBIL report and dispute any inaccurate DPD reporting

Managing Your CIBIL Status with Airtel Finance

Monitoring your CIBIL status is crucial for maintaining a healthy credit profile. With the Airtel Thanks app, you can conveniently check your credit score for free. If you’re looking for a personal loan to consolidate high-interest debt or tackle financial emergencies, Airtel Finance offers personal loans at competitive interest rates. Check your personal loan eligibility and required documents on the Airtel Finance website.

Conclusion

STD, LSS, and DPD remarks in your CIBIL report are vital indicators of your creditworthiness. Aiming for an STD status, avoiding LSS, and keeping DPD at zero can help you maintain a strong credit score. By responsibly managing your debt obligations and regularly monitoring your CIBIL report, you can build a robust financial profile that opens doors to better credit opportunities. Consider using the Airtel Thanks app to keep track of your credit score and explore Airtel Finance’s personal loan offerings to meet your financial needs.

FAQs:

1. What is the difference between STD and LSS in CIBIL?
   STD indicates timely repayments, while LSS means settling a loan for less than the original amount owed. STD has a positive impact on credit score, while LSS affects it negatively.

2. How does DPD impact my loan eligibility?
   Higher DPD indicates delayed payments and can significantly reduce your loan eligibility. Lenders perceive high DPD as a sign of financial stress and may be hesitant to approve your loan application.

3. Can I get a personal loan with an LSS status in my CIBIL report?
   While an LSS remark can make it challenging to secure a personal loan, you can still explore your eligibility with Airtel Finance. Check their personal loan eligibility criteria and take steps to improve your credit profile.

4. How can I remove an LSS remark from my CIBIL report?
   Obtain a settlement letter from your lender explaining the circumstances leading to the LSS. Make timely payments on your other accounts and gradually rebuild your credit score to offset the impact of LSS.

5. What is the maximum DPD allowed for a personal loan application?
   Most lenders prefer a DPD of zero or close to it. DPD above 30 days can significantly reduce your chances of personal loan approval. Check the specific DPD criteria on the Airtel Finance website.