topic Re: AZEO fail.....on Experian in Understanding FICO® Scoring

AZEO fail.....on Experian and now Equifax

glockrunner — Thu, 16 Jan 2020 15:16:35 GMT

This month I was trying to boost my mortgage scores with AZEO to see if I get the boost talked about. Looks like I chose the wrong card to have a balance on. I had just closed my Credit One card so it just reported $0 balance and closed. I have 3 revolvers reporting. I chose to use my NFCU cashRewards card which has a utilization of 5%. My Shell and Capital One are reporting $0.

Today I check my Experian account and my FICO 8 dropped 4 points and my FICO 2 dropped 8 points. Is it safe to say that Experian is not seeing the NFCU account for AZEO scoring? Under the FICO 2 score it is stating "not using revolving credit". Do you think the other 2 CRA's will do the same?

I was only 4-19 points away from 700. Now I am 27 on EX.

Should I use Capital One as the card with a balance?

Re: AZEO fail.....on Experian

CashBackQueen — Wed, 15 Jan 2020 16:16:38 GMT

Is this a new NFCU card? Mine took a couple cycles to finally start reporting.

Re: AZEO fail.....on Experian

Anonymous — Wed, 15 Jan 2020 16:19:02 GMT

I don’t follow AZEO and haven’t paid much attention to it, but I think I recall that someone, somewhere, suggested that credit union backed cards can do funky things with AZEO results.

Re: AZEO fail.....on Experian

glockrunner — Wed, 15 Jan 2020 16:26:03 GMT

I've had the card for 4 months and it's been reporting. I did hear too about a CU card not working with AZEO, but I did hear that it does too. Obviously it isn't for me unless I have too large on a $$ amount for balance. But based on the FICO2 score comments, I don't have any revolving usage. I can't check TU and EQ yet because they haven't updated the accounts yet.

Re: AZEO fail.....on Experian

mikesonthemend — Wed, 15 Jan 2020 16:37:07 GMT

Before AZEO works you have to let balances report, and subsequently go to zero. Thus you borrowed and repaid, thereby utilizing your credit.

Re: AZEO fail.....on Experian

glockrunner — Wed, 15 Jan 2020 16:52:35 GMT

So help me clarify what you are saying. My Navy card is always showing a balance, I do PIF but let 4-6% report. I use the Shell card and Cap One card but pay them to $0 before they report. Navy just reported and the other 2 will report in the next few days. There has been usage but they report $0. Are you saying I have to have them report a balance one month then pay to $0?

I had always had at least 2 report a balance because of the Credit one AF reporting every month. Now that account is closed

Re: AZEO fail.....on Experian

Revelate — Wed, 15 Jan 2020 16:56:23 GMT

Possibly or even probably.

I have problems with my DCU accounts on EX FICO 2: it's as if they don't factor as a straight revolver. I didn't test this succintly and I haven't tested my First Tech CU card but there's some idiosyncracies on it.

Basically when we're talking AZEO, always use a national bankcard, which in your case would be the Cap One. Retail / CU / other revolvers have some weird scoring stuff and frankly when it comes to a mortgage the little extra effort is worth it.

I haven't seen this problem elsewhere, FICO 8/9 and I think FICO '04 even fixed all that, but EX FICO 2 is still a FICO '98 model and we're talking nearly 22 years old now. Tweak it for next month.

Re: AZEO fail.....on Experian

glockrunner — Wed, 15 Jan 2020 17:07:53 GMT

If I pay down my NFCU card to $0 ($1500) I'll have to leave a small balance on the Cap One. I'm hoping EQ and TU sees the Navy card as a regular revolver and the scores go up. I just need 2 mortgage scores above 700.

Re: AZEO fail.....on Experian

SouthJamaica — Wed, 15 Jan 2020 17:23:59 GMT

@glockrunner wrote:
This month I was trying to boost my mortgage scores with AZEO to see if I get the boost talked about. Looks like I chose the wrong card to have a balance on. I had just closed my Credit One card so it just reported $0 balance and closed. I have 3 revolvers reporting. I chose to use my NFCU cashRewards card which has a utilization of 5%. My Shell and Capital One are reporting $0.
Today I check my Experian account and my FICO 8 dropped 4 points and my FICO 2 dropped 8 points. Is it safe to say that Experian is not seeing the NFCU account for AZEO scoring? Under the FICO 2 score it is stating "not using revolving credit". Do you think the other 2 CRA's will do the same?
I was only 4-19 points away from 700. Now I am 27 on EX.
Should I use Capital One as the card with a balance?

To be on the safe side, yes you should use Capital One as the one with the balance.

Personally, I don't think your use of the NFCU card was the reason, but why take chances?

Re: AZEO fail.....on Experian

glockrunner — Wed, 15 Jan 2020 17:47:04 GMT

The only other change was closing the Credit One account and it reporting $0 balance instead of $8. That left me with 3 revolvers. I wanted to get rid of my 2 predatory cards and Credit One was the last one. The tell-all will be what the other 2 bureaus show for mortgage scores. I'm not concerned about the FICO 8 scores at this point in time.

Re: AZEO fail.....on Experian

CashBackQueen — Wed, 15 Jan 2020 18:37:07 GMT

I did not know that about credit union cards! Wow, learn something new everyday My only card that I let report is my Capital One business card and AZEO works for me, so that could be it. Good to know.

Re: AZEO fail.....on Experian

glockrunner — Wed, 15 Jan 2020 21:51:06 GMT

I'm hoping TU and EQ will be different. I will report back on the results within the next day or so.

Re: AZEO fail.....on Experian

glockrunner — Thu, 16 Jan 2020 15:15:12 GMT

I just pulled my Equifax and the FICO 8 has gone down to 666 (-13). UGH! Fico 4 stayed the same at 685. Looks like AZEO with the Navy CU card doesn't work. I did close a predatory card which left me with 3 revolvers but I doubt this could have any effect. Next month I'm going to pay Navy to $0 and leave $25 on Capital One. Does anyone have any advice? I'm getting aggravated because I want to apply for a mortgage in May.

Re: AZEO fail.....on Experian

Revelate — Thu, 16 Jan 2020 17:09:12 GMT

@glockrunner wrote:
I just pulled my Equifax and the FICO 8 has gone down to 666 (-13). UGH! Fico 4 stayed the same at 685. Looks like AZEO with the Navy CU card doesn't work. I did close a predatory card which left me with 3 revolvers but I doubt this could have any effect. Next month I'm going to pay Navy to $0 and leave $25 on Capital One. Does anyone have any advice? I'm getting aggravated because I want to apply for a mortgage in May.

Going from 4 open revolvers to 3 open revolvers absolutely makes a difference for EQ FICO 8 based on all my data. Wouldn't have expected that large a drop but I would've expected something and there shouldn't be any problems with an NFCU card on FICO 8.

The key point here is your EQ FICO 5 didn't move at all, and since that's what mortgages use that's clutch.

If you're not applying for anything until May you've got time, just make sure you're AZEO with some small amount on the Cap 1 card and you should be as good as you can get right now.

ETA: in case this is misinterpreted, absolutely DO NOT open up another new revolver to try to gain those points back right now: stay tight, get the mortgage, then do whatever else you need for your credit profile in terms of getting additional credit cards or whatever, that will hurt worse than whatever you might gain on EQ FICO 8 or possibly EX FICO 2; I was thinking of my own DCU squirrley behavior, could've been accounts with balances calculation too. Switch the balances around and then see where your Experian score is as EQ being above 685 is a good mark and depends what your EX/TU scores happen to be.

Re: AZEO fail.....on Experian

glockrunner — Thu, 16 Jan 2020 17:16:55 GMT

I am at AZEO yet the mortgage scores on EQ and EX remain the same. Proves that a CU card doesn't work if it's the card with the balance on it.

I never read on here that going to 3 revolvers causes a point drop. I had to get rid of it because they were charging a fee and I couldn't achieve AZEO with the 2 balances reporting. But obviously something is going on that is causing this mess. Happy the FICO 5 didn't change but the 08 is looking terrible.

Okay, just read your 2nd addition to the post. My TU IS 696 and EX is 673. Yes, I won't be applying for another card. Too late now! I'll go to the Capital one and hope that works, i feel confident it will

Re: AZEO fail.....on Experian

Revelate — Thu, 16 Jan 2020 17:23:10 GMT

@glockrunner wrote:
I am at AZEO yet the mortgage scores on EQ and EX remain the same. Proves that a CU card doesn't work if it's the card with the balance on it.
I never read on here that going to 3 revolvers causes a point drop. I had to get rid of it because they were charging a fee and I couldn't achieve AZEO with the 2 balances reporting. But obviously something is going on that is causing this mess. Happy the FICO 5 didn't change but the 08 is looking terrible.

Okay, just read your 2nd addition to the post. My TU IS 696 and EX is 673. Yes, I won't be applying for another card. Too late now! I'll go to the Capital one and hope that works, i feel confident it will

Even with the +8 points on the EX FICO 2 score you're still not going to get to 700 short of some other change in your file... 680 is your mark and that admittedly doesn't suck. I would still switch up though as if you get points back you'll have more of a buffer if your mortgage process runs longer than 30 days if you need a second pull.

Don't focus on FICO 8, keep your eyes on the prize: you only care about mortgage scores right now, FICO 8 is literally irrelevant to that.

Re: AZEO fail.....on Experian

glockrunner — Thu, 16 Jan 2020 17:30:29 GMT

Revelate, Good point, stay focused on the Mortgage scores. If AZEO works with the Cap 1 card then I may have 1 if not 2 above 700. That is my goal but as you said 680 doesn't suck and that may be where I'll end up. I'll def keep everyone posted.

I have a recently paid collection on EQ that is falling off this month or next. That can be a plus

Re: AZEO fail.....on Experian

Anonymous — Fri, 17 Jan 2020 09:36:37 GMT

@glockrunner Whats the CL on that NFCU?

And lesser revolvers hurts you when you only have 3 cuz you can only get down to 33.3% of revolvers with a balance. There are # of revolvers with a balance thresholds under 33.3%. Your AZEO best is 33.3%.

But like @Rev said, fix that later.

Re: AZEO fail.....on Experian

glockrunner — Fri, 17 Jan 2020 15:08:27 GMT

@Anonymous wrote:
@glockrunner Whats the CL on that NFCU?

And lesser revolvers hurts you when you only have 3 cuz you can only get down to 33.3% of revolvers with a balance. There are # of revolvers with a balance thresholds under 33.3%. Your AZEO best is 33.3%.

But like @Rev said, fix that later.

Yes, that's what I've read. The best I've had prior was 60% with the cards so this will be better than before. Once I have the Cap 1 report and not the NFCU card.

Re: AZEO fail.....on Experian

dragontears — Fri, 17 Jan 2020 15:27:31 GMT

The reason you were asked about the limit on your NFCU is cards with very high l limits are excluded from some of the mortgage score models