Your chances of securing a loan rely on how positive your credit report is. A credit report is a record of the entire history of your debts and your financial behaviour. Lenders analyse this report when considering your loan applications.
In India, CIBIL is a prominent credit information company that generates credit reports. This report is also termed as CIBIL report. Within the report, there are several terms like STD, LSS, and DPD that have significant effects on your creditworthiness and require a deep understanding.
In this article, we will delve into the different remarks on your CIBIL report, such as STD, LSS, and DPD, their full forms, and the major differences between them.
What is STD in CIBIL?
STD’s full form in a CIBIL report is ‘Standard.’ Getting STDs in your report is a good sign. A CIBIL STD means you have a habit of making your repayments on time without any delays. It assures the lenders that you are financially reliable and has a positive reflection on your creditworthiness. In such cases, lenders will be more inclined to approve your loan applications with favourable interest rates and tenure.
What is LSS in CIBIL?
LSS’s full form is ‘Lender Settled Status.’ Having an LSS on your CIBIL report has a negative connotation. It indicates that a borrower has settled the debt at a lesser amount than what was agreed upon. This usually occurs when the borrower is unable to pay the whole amount and, after negotiations with the lender, pays a reduced amount. LSS on credit reports can decrease your credit score and make it challenging to get your loans approved in the future.
What is DPD in CIBIL?
DPD’s full form in a CIBIL report is ‘Days Past Due.’ It notifies the number of days a borrower’s payment has been overdue. It is expressed in numbers such as DPD 30 and DPD 100, where the numbers indicate the total days that have passed since the due date. A high value of DPD signifies payment delinquency and signals a warning to the lenders. It reflects poorly on your credit report and greatly enhances your chances of loan rejections.
Differences Between STD, LSS, and DPD in CIBIL
The table below highlights the significant differences between the three statuses i.e, STD, LSS and DPD.
Criteria
Standard (STD)
Lender Settled Status (LSS)
Days Past Due (DPD)
Meaning
Borrower makes timely repayments.
Borrower pays partial loan amount.
Borrower pays the debt long after the due date.
Credit Behaviour
Financially responsible and disciplined.
Financially distressed.
Financially delinquent.
Impact on Credit Score
It has a positive impact on your credit score
It has a negative impact on your credit score.
It has a negative impact on your credit score.
Implications on loan eligibility
Improves eligibility for loans with favourable terms.
Reduces the loan eligibility. May lead to loan rejections.
Significantly reduces the eligibility. May lead to rejections or loans with unfavourable terms.
Recovery
Maintain the status by making timely payments.
Improve credit habits over time to build trust with lenders.
Clear outstanding dues and consider debt restructuring for better financial management.
How to Improve Your Creditworthiness?
Here are some tips you must follow to improve your creditworthiness.
1. The first step is to regularly monitor your credit score to assess your financial position
2. You must file a complaint with CIBIL if you spot any discrepancies in your report that may not be your fault.
2. You should make repayments on your outstanding debts in a timely manner.
3. Your Credit Utilisation Ratio (CUR) should be below 30%. It is the percentage of credit you use compared to your credit limit.
4. You should avoid multiple loan applications because it raises a hard inquiry. Too many hard inquiries in a short time indicate that you rely too much on new credit to manage your finances.
5. Set calendar reminders for your due dates or automatic debit payments to avoid delayed repayments.
6. You should consider having a mix of credit products, such as secured loans like home loans and unsecured loans like personal loans, to highlight your skill in managing different types of credit effectively.
Final Thoughts
Your ability to secure favourable loans hinges on your CIBIL report, which directly impacts your creditworthiness. A clear understanding of the report, including components like STD, LSS, and DPD, is essential for maintaining a strong financial profile. Striving for an STD status, avoiding LSS, and keeping your DPD at zerocan positively reflect on your CIBIL report, increasing your chances of loan approvals on better terms.
Are you unsure about the status and remarks on your CIBILreport? Well, now you can easily check your CIBIL score by visiting the Tata Capital website. To check your credit score, click on “New Customer,” enter the OTP sent to your registered mobile number, and you’re all set.For more details, visit the Tata Capital website or download our app today!
FAQs
Can I get a personal loan with an LSS status in my CIBIL report?
Having an LSS status on your CIBIL report can reduce your chances of getting a personal loan and may result in higher interest rates if approved. It's important to improve your credit profile to qualify for better loan terms.
How can I remove an LSS remark from my CIBIL report?
To remove an LSS mark, you should first obtain a settlement letter from your lender and explain the circumstances that resulted in the mark. Make timely payments on your other accounts and steadily rebuild your credit score to minimise the impact of LSS.
How does DPD affect credit scores?
A high DPD indicates delayed payments, which can negatively affect your credit score. It is a sign to the lenders that it may be risky to extend credit to you, which can hamper your ability to get loans in the future or get favourable interest rates.
Is STD in CIBIL good or bad?
Having an STD in your CIBIL report is a good sign. It signifies responsible financial behaviour and your ability to pay debts in a timely manner. It increases your ability to secure loans in the future with better loan terms.
20 February 2025
5 mins read
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