What is STD, LSS & DPD in Cibil and Their Differences?

Understanding the terms in your credit report is important while managing your credit profile in India. One prominent name in the credit reporting world is the Credit Information Bureau India Limited (CIBIL). It collects and maintains individual credit information. CIBIL provides lenders with credit reports, which include a credit score that reflects your creditworthiness.

However, the CIBIL report contains several abbreviations and terms that can be confusing. Some of these are STD, LSS, and DPD, which signify different aspects of your credit behaviour. Understanding the meaning of these terms and how they can impact your credit score is essential for maintaining a healthy credit profile. In this article, we'll dive into what these terms mean, their full forms, and their key differences.

What is STD in CIBIL?

The STD full form in CIBIL stands for 'Standard.' The STD's meaning in CIBIL report denotes a credit account where the borrower is making timely payments without any delays. Simply put, STD means the borrower has maintained a consistent repayment history. Having an STD status on your CIBIL report is positive as it indicates the borrower is reliable in paying off their debts.

When an account is marked as STD, it assures lenders that the borrower is responsible and creditworthy. If you consistently pay your dues on time, your account will likely be marked as "Standard". It is favourable for maintaining or improving your credit score. Banks and financial institutions will be more inclined to offer you loans or credit products if your report shows STD accounts.

What is LSS in CIBIL?

The LSS full form in CIBIL stands for 'Lender Settled Status.' This term appears on your CIBIL report when a borrower has settled a debt with the lender by paying less than the full outstanding amount. This generally happens when a borrower cannot repay the entire loan amount and negotiates with the lender to settle the debt by paying a reduced amount.

Although settling the debt may relieve some financial pressure, LSS in CIBIL is considered a negative remark. Lenders view it as a sign that you could not meet the agreed-upon loan terms, which may harm your creditworthiness.

An LSS status can hurt your credit score and make it more difficult to obtain credit in the future. Even if the debt is marked as 'settled,' lenders will note that the full amount was not repaid, and this could lead to higher interest rates or rejections when you apply for new loans.

Also Read: How to Improve CIBIL Score - Smart Tips

What is DPD in CIBIL?

DPD full form stands for 'Days Past Due.' In a CIBIL report, DPD is used to indicate the number of days a borrower's payment is overdue. For instance, if you have missed a loan payment, the DPD will show how many days have passed since the due date. DPD is expressed in numbers like DPD 30, DPD 60, or DPD 90, where the numbers refer to the number of days the payment has been overdue.

Having a high number in the DPD column is a red flag for lenders. It signifies payment delinquency, meaning the borrower is behind on their repayments. The longer the delayed payment, the more your credit score will be affected. While occasional delays may not severely affect your credit score, frequent or prolonged delays in payments can lead to a lower credit score, making it difficult to get loans on favourable terms.

Also Read: Difference Between CIBIL Score and CIBIL Report

Major Differences Between STD, LSS, and DPD in CIBIL

Understanding the key differences between STD, LSS, and DPD is important for interpreting your CIBIL report accurately and managing your credit health effectively.

Formats of STD, LSS, and DPD in the CIBIL Report

Understanding how these terms are presented in your CIBIL report will help you monitor your credit health better.

STD

The STD status is usually displayed in the account details section of the CIBIL report. This section includes details such as the account name, account number, outstanding balance, and payment history. If your account shows "STD," it means your payments are on track, and this will be reflected in your overall credit score.

LSS

The LSS status will be shown when a loan is settled with the lender for a reduced amount. It is typically displayed in the account summary with a note that the loan was settled rather than fully repaid. This status indicates that the borrower and lender have reached an agreement to close the account, but it was not fully repaid, which negatively impacts the credit score.

DPD

The DPD information is usually presented in a tabular format in the CIBIL report. It includes the account name, account number, date of last payment, current outstanding balance, and the number of days past due. A table will show the status of payments over several months, with numbers indicating how many days the payment is overdue.

Conclusion

Understanding STD, LSS, and DPD in your CIBIL report is key to managing your credit profile effectively. Regularly checking your CIBIL report and resolving negative remarks can help maintain a strong credit profile, which is crucial when applying for loans or other financial products.