The Importance Of Paydex Score In Building Business Credit

If you already have a personal credit card perhaps you are familiar with your personal credit report and your FICO score. But in business credit card, you should familiarize yourself with the business credit scoring. You may already be familiar with your credit report and your FICO score. But if youre a new business owner, are you also understand the elements that make up your corporate credit,

Do you know what Paydex means, This article discusses the basic points that you should know about business credit. Your Paydex Score is the equivalent of your FICO score. Dun & Bradstreet – a major business credit bureau, uses this method of calculation to measure a businesss credit. Once youve registered with D & B and you have received your D&B number, your financial dealings with creditors and other businesses will be reflected in your business credit report. When you obtain a copy of your credit report from D&B, part of the report includes your Paydex score.

A Paydex score ranges from 0-100, with 90 and above considered as excellent, 80 as good or acceptable, and 70 and below indicates a poor rating. Just as individuals aim for a high FICO score, business owners also want to reach a high Paydex score and maintain an excellent standing.

How do you achieve a high Paydex score, Timeliness of payment plays a vital role in how your business credit score is calculated. Of course, the best way to achieve an outstanding score is to always submit your payments on time. If you can pay your bills earlier than your due date, then the better it would be for your business credit. Would occasional late payments affect your score,

Yes. In fact, even a single late payment can pull down your score by a point or two. Nevertheless, if your average score is around 95 or more, falling one or 2 points down would bring you to a score of 93 which is still considered as an excellent rating.

Thus, as much as possible, it is crucial to be on time in submitting your payments to all your creditors. What if you cant afford to pay all your creditors on time, It would be better to pay off your highest bill first to lessen the impact on your credit score. Obviously, a high Paydex Score makes you an ideal client for banks and lenders while a low score makes you a high-risk borrower in the eyes of creditors.

It is interesting to note that the best business credit cards in the market always require good to excellent credit. However, if you have a poor business credit, you may consider getting a secured business credit card as a tool to raise your Paydex score. Understandably, a bad credit business credit card would have higher interest rates and lower credit limit than credit cards that require good credit. Nevertheless, by using your credit card account and paying your bills on time, you can make an improvement in your score within just a few months. Find a credit card that would report your payments to the major business credit bureaus as it is the only way you can raise your Paydex score.

They'll tell you that you only have a marketing file and you absolutely have to buy this program. 200 range and everywhere in-between. The truth is that companies report automatically, you can easily get a Paydex score for free, and the hefty commission for hawking the credit builder product is the motivation for the reps. In general, you need 5 companies to report to get a Paydex. Credit scoring is also different than personal scoring. The main variable is how soon you pay something off.

If you buy something and wait 30 days to pay it, your score will be lower than someone who pays it off in 5 days. Larger accounts count more than smaller accounts, so someone with a 100k balance will get more points for paying it off than someone with a 5k balance.

Finding companies to report is fairly simple. Start with the basic office supply companies like staples, office max, office depot, and Viking. They give easy credit to just about anyone and report. Wait roughly 45 days for these companies to report. Once they report, move up to the Home Depot, Lowes, and Dell level. These are slightly harder to get credit from, as they typically want to see a few positive trade lines first. Again, wait the requisite 45-60 days for all these companies to report before moving up to the next level: general use credit cards.

Getting a general use, regular credit card is much harder. Many companies look at both your personal and business credit scores, although some may only need to glance at your business scores to get an approval. Citibank generally will give you a general use card if your business credit file is strong enough. I personally got approved for three business cards with CITI and only had to endure one credit pull. Advanta offers really great business credit card offers, with a lengthy promotional APR period, low rate afterwards, and overall very favorable terms.

The flipside is that Advanta is also one of the most picky credit issuers, and they base much of their approvals almost entirely on your personal score. If you have any personal credit woes, you'll probably be declined, and this includes having more than 6 inquiries in the last 6 months, too many new accounts, or balances that are too near their limits. There are two major benefits to having business credit cards.

First, they don't report to your personal credit, unless you default, so expenses you may have bore that made you appear to be more risky or close to your credit limits will not show in the future. Secondly, many business cards come with travel and other rewards programs for gifts, concert tickets, or healthy cash back percentages. For success, make sure your personal credit is clear, and follow the tips listed above. It doesn't take that long to build a business Paydex of 80, probably only 4-6 months at the most. The leading site offers over 75 different credit cards from Discover, Chase, American Express and other top banks and financial institutions.

Credit cards are used to buy goods, pay for services and withdraw money from ATM machines. When you use your credit card to buy goods or pay for services, then approval will is given which depends on several factors but above all, on fund availability in relation to your allotted credit limit.



Applying for a credit card online is faster than the conventional process of visiting your bank then filling out all the involved the paperwork. Your bank will publish you the credit card only if and when you meet their set requirements. When you meet their requirements, you are then allocated with a credit card account which is separate and distinct from your regular bank account. Take note that before submitting your credit card application, you have to obtain your credit report first and make certain that it is accurate.