Paying off your balances early will net you a higher Paydex score. Paying them off on time will give you a Paydex score of 80. Pay late, and your score will drop—the later your payments, the more your score drops. Note that your business won’t immediately receive a Paydex score. You’ll need to register for a Data Universal Numbering System (D-U-N-S) number first. Once you do this, you’ll need to have at least three interactions from at least two suppliers reported to Dun and Bradstreet before the firm can generate your score.
How Paydex Calculates Your Score
Paydex will analyze up to 874 of your past trade experiences. First, the formula will calculate the percentage of each account based on the total balances of your credit accounts. Paydex then multiplies each percentage against the Paydex Weighting Key, which assigns a score based on how promptly you’ve paid your balances. This will result in a total amount of Paydex points per experience. Finally, the formula adds up your Paydex points—the sum is your Paydex score.
Examples of Paydex Scores
Let’s say you’ve had just four total trade experiences reported to Dun and Bradstreet. Of these, you’ve made three of your payments on time and one of them 30 days late. Paydex assigns a score of 80 to on-time payments and 50 to payments made 30 days late.
