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  • Joy Greenwood

What "Unchanged" Scores Mean?


If you use D&B's free CreditSignal® service to monitor your company's scores and ratings like I do, you probably recognize the <—> arrows shown below. Most people would think those arrows (and the words "No Change") would indicate your scores are "unchanged" — but that's not always the case.

In the case of the Paydex® score above — if you thought the "unchanged" arrows indicate that score has not changed since 11/07/2017, you would be correct. Even though the CreditSignal doesn't allow us to see the actual Paydex® score, the fact that it hasn't changed up or down in over a year is good — because a stable Paydex® score is an indication of a stable business.

With regards to the Delinquency Predictor Class, however, the "unchanged" indicator is misleading. We know this because the date to the right of the arrows is a more recent date than what was showing just the day before.

To understand what is really happening here, you need to realize that the Delinquency Predictor Class (shown in the image) is NOT the same thing as the Delinquency Predictor Score (which is not shown).

While the Delinquency Predictor Score ranges from 100 to 670, with higher scores indicating lower risk, the Class (which is what is shown in the CreditSignal®,) is factored incrementally on a scale of 1 to 5, with lower numbers indicating lower risk.

So if you have a Delinquency Predictor Score of 527 that aligns to a (moderate risk) Class 3 ranking, by improving the score by just a few points to 532, you could boost your ranking to a (lower risk) Class 2.

In this case, though, the "unchanged" arrow on 02/19/2019 tells us that the Delinquency Predictor Score changed, even if it was not enough to move the arrow on the Class ranking.

But if you take a look at the next score down on the Scorecard, you'll see the Financial Stress Class shows as "Improved" on 02/19/2019.

This tells us that the Financial Stress Score improved last Tuesday, and it did so by enough that it also boosted the Financial Stress Class to a lower risk ranking, which also improves the client's potential for being able to achieve credit.

The next score on the Scorecard is the Supplier Evaluation Risk Rating, which is measured on a scale of (lowest risk) 1 to 9 (highest risk).

In this particular client's situation, we had updated his business address in early January, and that allowed payment history to finally find its way into his file just a couple weeks later, and it happened automatically when the vendors re-reported to D&B. Adding that payment history helped to boost his Supplier Evaluation Risk Rating into a more positive position so he may now qualify for a credit line increase.

Like the 80 Paydex® score that was already in place, the client's D&B Rating was established back in 2017, so the updates didn't impact the rating.

If the updates had impacted the Rating in any way, we would have seen a more recent date next to the "Unchanged" arrows in this section.

You may have noticed that the D&B Viability Rating doesn't have arrows that indicate a change, or even a date the last change occurred. Instead, your company is rated here in one of three ways: Good, Fair, or Poor.

This rating is based on four internally-generated scores...

  • Viability Score

  • Portfolio Comparison

  • Data Depth Indicator

  • Company Profile

...and the details that make up these scores include factors you have little (or no) control over, such as the age of your business or what industry you are in. HOWEVER you can control whether D&B has the RIGHT age, industry, and other data that is specific to your business, and that can greatly impact this rating.

If you would like my assistance in setting up a free CreditSignal® service so you can see where your company's D&B scores and ratings are at, feel free to reach out to me directly. I can set it up for you or walk you through the set-up process in less than five minutes — free of charge!

As always, if you have any questions or need assistance with regards to your company's ability to build scores and ratings, just give me a call!


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Starpoint Credit Solutions LLC
11504 Joy Street   |   Austin, TX 78748
Phone / Fax  (800) 918-7505
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