CIBIL, the Credit Information Bureau India Limited, generates credit reports that contain terms like STD, LSS, and DPD. These terms help lenders understand your creditworthiness and determine your eligibility for a loan. Let's break down what these terms mean and how they differ.
What is STD in CIBIL?
STD in CIBIL stands for "Standard." It shows that you have made all your payments on time without any delays or defaults. If your credit report shows STD, it is a positive sign for lenders, indicating responsible credit behaviour.
What is LSS in CIBIL?
LSS in CIBIL stands for "Lender Settled Status." This term indicates that you have settled a loan with a lender for a reduced amount. It can negatively impact your credit score because it suggests you did not fully repay your debts, which may affect your future credit applications.
What is DPD in CIBIL?
DPD in CIBIL stands for "Days Past Due." This term shows how many days a payment has been overdue. The higher the DPD number, the more delayed your payments are, which can harm your credit score and affect your chances of getting a loan.
Difference Between STD, LSS, and DPD in CIBIL
Here are the key differences between these terms in CIBIL:
| Term | Meaning | Implication |
| STD | Standard (on-time payments) | Shows responsible credit behaviour |
| LSS | Lender Settled Status | Indicates settled loans, potentially affecting creditworthiness |
| DPD | Days Past Due | Reflects overdue payments, leading to a negative impact on credit scores
|
Format of STD CIBIL Report
The STD in CIBIL is usually displayed in the credit report's "Account Information" section. This section includes information about your credit accounts, such as credit card numbers, types of loans, outstanding balances, and payment history. An STD status indicates that you've made all payments on time.
Types of Asset Classification of LSS in CIBIL
This means the lender has agreed to settle your loan for a reduced amount. This type of asset classification often indicates that a borrower had difficulty repaying the loan in full, affecting the lender's perception of your creditworthiness.
Format of DPD CIBIL Report
The DPD in CIBIL is found in the "Payment History" section of the credit report. It displays the number of days a payment was overdue for each credit account. Higher numbers indicate more severe payment delays, which can lead to a lower credit score and fewer loan approvals.
Benefits of Resolving DPD, STD, and LSS
You can improve your creditworthiness and get better loan terms by resolving these issues. Here are some benefits:
| Benefit | Description |
| Better Loan Approvals | Resolving these issues can increase your chances of getting loan approvals with favourable terms. |
| Improved Credit Score | Addressing these issues can boost your credit score and overall creditworthiness. |
| Detecting Errors | Regularly monitoring these terms helps you identify and correct any mistakes in your credit report.
|
Tips to Improve Your Creditworthiness
Taking steps to improve your creditworthiness can boost your credit score and make it easier to get loans. Here are some tips to help:
| Tip | Description |
| Timely Payments | Pay your bills on time to avoid DPD issues and keep a positive STD status. |
| Reduce Credit Utilisation | Keep your credit card balances low to maintain a healthy credit score. |
| Avoid Multiple Loan Applications | Applying for too many loans at a time can harm your credit score. |
| Regular Credit Checks | Check your credit report regularly to catch errors and monitor your creditworthiness. |
| Settle LSS Accounts | If you have LSS accounts, negotiate a full payment to remove the negative remark. |
Conclusion
Understanding the meanings of STD, LSS, and DPD in CIBIL is crucial for managing your credit report. These terms help lenders assess your creditworthiness and influence your credit score. By maintaining a positive STD, avoiding LSS, and keeping DPD low, you can improve your chances of getting loans from Hero FinCorp at favourable terms.
Frequently Asked Questions
1. How does DPD affect credit scores?
DPD reflects the number of days a payment is overdue, also known as an overdue payment. The higher the DPD, the more it can lower your credit score.
2. What is STD in banking?
STD in banking usually refers to a Standard account where payments are made on time without delays.
3. How can individuals avoid DPD issues?
Make timely payments, set up automatic payments, and manage your credit wisely to avoid DPD issues.
4. Is STD in CIBIL good or bad?
STD in CIBIL is good; it shows you've made all your payments on time.
5. What is STD payment in CIBIL?
STD payment in CIBIL indicates that a borrower has made on-time payments without any delays.
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