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Paydex Score & Business Credit Cards

How Does a Paydex Score Affect Business Credit Cards?

A Paydex score is a number from Dun & Bradstreet that is put together as a part of a report on your business. This plays an important role in determining whether and how other businesses deal with yours. It is a dollar-weighted average of how long it takes you to pay your bills. It also affects your ability to get a business credit card.
The score ranges all the way up to a score of 100, with 90-100 being the best range of scores, indicating that you pay your bills early. A score in the 80s indicates that your bills are generally paid on time. Anything in the 70s or below will indicate that your business is frequently late in paying its bills. Keep in mind that this is an average of all of your transactions that are reported to D&B.
For example, if you are late on one bill, but pay another bill early, your score may average out in to the 80s, if both those bills were for equal amounts. If you pay a large bill late and a small bill early, your score will go up, but not as much as in the previous example.

Raising Your Paydex Score

Paying a small bill late and a large bill early, conversely, will cause your Paydex score to raise more. The best way to raise this score is to frequently pay all of your bills early, if possible. 

This score clearly has a significant impact on your overall credit image to potential business loan lenders, business credit card companies and other businesses you may be working with. The reason for this is that it is an indicator of how your business pays its bills.

A business with a low score is, on average, usually late with its bills and is less likely to be approved for a loan or another credit-based arrangement. On the other hand, a business with a high score pays most of its bills on time, or even early, which is an obvious advantage to anyone looking to do business with you or grant you a loan

Using a Paydex Score to Get a Business Credit Card

Basically, a higher score indicates that your business is very reliable and indicates lower risk in extending, for example, a line of credit, a lease or a business credit card, giving you a better chance of obtaining those, and other financial arrangements when your business needs them. 


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