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Trended Credit Data Reports

Community Leader
Senior Contributor

Re: Trended Credit Data Reports


Subexistence wrote:


Would it also mean to be careful each month to keep utilization 1-9%. Keeping AZEO every month for the purpose of buiding good trend will be hard with multiple BBR cards.


Hi SubEx!  Actually, if trended data do make their way into the normal part of the decision making of CC issuers and lenders (and it's not clear that will happen) then the great news is that the AZEO strategy (All Zero Except One) will eventually be no longer necessary.

 

AZEO is a "trick" -- a way of gaming the system used by people who hang out on sites like this.  It's not a natural form of consumer behavior.  People on sites like this figured it out years ago because FICO and Vantage -- in the world before trended data, which is almost the entire life that credit scoring has been around -- were never able to tell whether consumers paid their bills in full.  So they had to rely on less predictive and easily gamed markers, like AZEO and having an ultratiny utilization.  I

 

It trended data become a standard thing, then ordinary Joes who don't hang out on sites like this but do pay their cards in full each month -- their behavior will be detected and it will help them be classified as very low risk.

 

If the idea of multiple BBR cards appeals to you, I would just do it.  FICO 8 rewards the creation of lots of $0 balances a good deal less than the mortgage models do.  By the time you buy a house lenders may not be using those ancient models.  And if they are, you'll just need to decide whether it make sense to lose a couple of your BBR card bonsues for one quarter in order to get the house of your dreams -- probably not too hard of a decision to make.

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