What is a Paydex Score and why should you be interested to learn more about it? How can you build a solid Paydex Score? This article discusses information that you should know about business credit.
Your Paydex Score Helps Your Business Financing
The Paydex score is used calculate business credit rating in figures. If you have registered your company with a business credit bureau like Dun & Bradstreet, you can start building your business credit by applying for a new business credit card or business loan. Just make sure that your chosen lender will report your payments to D&B.
The Paydex Score is included in your business credit report. A Paydex score ranges from a low score of 80 to a high score of 90 to 100. A Paydex score of 70 or below is considered as poor. Obviously, if you have low score, it would be very difficult to convince lenders to approve your credit application.
The calculation of the score is largely based on your payment history. Frequent late payments to your lenders and credit cards issuers can definitely pull down your Paydex score. On the contrary, consistent and timely payment will give you a higher Paydex score.
Your Paydex Score – Why You Should Be Concerned
Does it really matter whether or not you have an impressive Paydex Score? Of course it does. When applying for new credit, a prospective lender will evaluate your application based on how you managed your previous accounts.
Aside from easy approval, an impressive score gives you the opportunity to enjoy lower interest rates and higher credit limit from lenders. The ideal Paydex Score is from 90 to 100 so if your present score falls below that range, you should definitely work for improvement.
Generally, the best business credit cards are reserved to customers with good to excellent credit. If you do not have business credit, your personal credit score will be considered. If you have bad credit, a secured business credit card can be a great tool for rebuilding your business credit.
Secured credit cards for business require the submission of cash deposit which will also serve as your credit limit. After a year of timely payment, you may request for an upgrade to an unsecured business credit card account.
Be sure to register with D&B as soon as you get approved for your first business credit card. This way, you can start building your Paydex score and business credit history.
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Pamela Williams is a Loan Consultant, Internet Marketer and Writer. For years she had helped consumers and business owners especially regarding business credit cards. This resource is dedicated particularly on business credit card reviews, articles, tips and advice, and online application so that consumers and business owners may compare which is the best business credit card for their business. Copyright 2007 |
