How to Raise Your PAYDEX Score.

One of the most important sections of your D&B Business Credit Report Is the payment summary section. There are two scores in this section that rnAre critical to the report and can separate a good report from a bad one.While the two scores – the PAYDEX score and the PAYDEX score key rnAre related, they deal with separate issues that you need to know and Understand.rnYour PAYDEX score is a statistical measure of your business creditworthiness … your ability to pay your debts … similar to your personal creditworthiness FICO score. A PAYDEX score of 80 is similar to that of a 700 personal FICO score.rnYou’ll need a PAYDEX score of 80 to obtain the most favorable financing … meaning you pay all your bills on time. To obtain a PAYDEX score, you need at least five trade accounts reporting to your file … but the score itself is calculated by using as many as 875 payments.rnYou will also want those accounts to report favorable payment history. If you pay your bills on time, they will. If you pay your bills late, your PAYDEX score will drop. Depending on how early or late you pay your bills, your PAYDEX score will adjust accordingly. If you pay early, then you can achieve a score that is over 80.rnHow timely you pay your bills (your PAYDEX score) is a good indicator to lenders of how likely you are to pay your bills in the future. Lenders look at this score carefully when deciding whether or not to give you a loan. I've included a D&B PAYDEX score key chart below for your reference. Getting a PAYDEX score key of 80 means you have a perfect score. When you pay all your bills on time, meaning on or before the due date, you'll get a perfect score. Remember, to get this score, you need to have 5 trade references reporting to D&B on your company. CHECK FILE PAYDEX SCORE CHART.PNG in newsletter file 100 Anticipatern90 Discountrn80 Promptrn70 Slow to 15 Daysrn60 Slow to 22 Daysrn50 Slow to 30 Daysrn40 Slow to 60 Daysrn30 Slow to 90 Daysrn20 Slow to 120 Days Admittedly, this can be one of the most difficult credit-building requirements to meet … because you’re at the mercy of your vendors to bother reporting. One of the best things you can do here is ask your suppliers for 30-day payment terms … and ask them to report your payment history to Dun & Bradstreet.