Whoa. That was weird.

RKBAGUY · ‎03-11-2018

I've been following the AZEO method for about 8 months now, and my scores have risen from low 700's to high 700's by using one credit card which has a modest limit of $1500, paying it down to within $130-ish bucks (approx. 9% of the limit) before the statement cuts, then paying the balance after the statement closes.

For some reason, in this last month, I just got whacked and my scores dropped - Equifax -10 points, Experian -24 because the $131 balance I was carrying dropped to $0. It happens that this drop coincides with a credit inquiry for a car loan, for which I was approved. So, no damage done, but it is odd.

Unless I made a critical error on the timing of my payment, **bleep** just happened? I'm just trying to figure it out so I can keep my scores high as they can be.

Thanks!

Anonymous · ‎03-11-2018

Check the report for the date that CC last reported, some issuers like Chase will report mid cycle when the balance is zeroed out.

Anonymous · ‎03-11-2018

@RKBAGUYI've been following the AZEO method for about 8 months now, and my scores have risen from low 700's to high 700's by using one credit card which has a modest limit of $1500, paying it down to within $130-ish bucks (approx. 9% of the limit) before the statement cuts, then paying the balance after the statement closes.

It sounds like your AZEO card reported a $0 balance, which is known to drop scores in the realm of what you referenced. Simply allow a small balance to report again on that card and those points will come right back.

One point worth mentioning and understanding here though is that your scores didn't go from the low 700's to the high 700's over 8 months due to AZEO implementation. AZEO has no impact over any period of time other than the current moment. If you scores are X without AZEO in place and are X+20 with AZEO in place, they will remain X+20 as long as you have AZEO in place. If they continue to rise over time to X+30, X+40 etc. your scores are rising due to other factors such as aging, not because AZEO is in place. Hopefully that makes sense.

RKBAGUY · ‎04-04-2018

Fair enough. That makes sense, especially when the explanation of how AZEO and reporting works.

I've been keeping the reporting amount to roughly $135-ish bucks, which is 9% of my $1500 limit on this card. However, I now have an auto loan for $46K-change being reported from a car purchase. Should I....

1) Keep the same $135 reporting amount in place?

2) Increase the reported balance on the CC by a certain amount?

IOW, what would happen if I were to allow $300 (or more) to post to the credit card and then pay it down after the statement cuts as normal?

Anonymous · ‎04-04-2018

Your auto loan (installment loan debt) is different than revolving debt. They aren't related. You'll want to continue to allow a small balance to report on one revolving account every month if your goal is to keep AZEO in place and maximize scores.