topic Re: Next Best Option - Can't do AZEO in Understanding FICO® Scoring

Next Best Option - Can't do AZEO

recoveringfrombk7 — Thu, 07 Jan 2021 18:41:21 GMT

I want to put my best foot forward for some apps coming up in March (a CC - they will pull TU9) and May/June (Car - they will pull EQ9). I am carrying a balance on a TD/NordicTrack 0% for 36 months. I could afford to pay it off, but I am unwilling to do so given the pandemic. I'd rather keep the cash on hand given I'm not paying interest. It's still pretty high (76% of limit). I will be trying to get a CLI on it to lessen the utilization. I have 6 other cards. What is the next best option AFTER AZEO? Is having the one account reporting from NT better than just staying under use on 50% on my cards? Normally I just PIF when statements cut, but I would like to look good for these two apps given the current climate. Thanks for the help!

Re: Next Best Option - Can't do AZEO

RSX — Thu, 07 Jan 2021 20:44:04 GMT

getting it under 50% will likely help your score

also, getting a lower car interest rate is more important than the CC you want in March, so i would get the car loan first, then app for the CC a week or two later

otherwise you will have a new CC acct 2-3 months for apping for the car loan - which could raise the interest rate they give you

Re: Next Best Option - Can't do AZEO

recoveringfrombk7 — Thu, 07 Jan 2021 22:09:41 GMT

@RSX wrote:
getting it under 50% will likely help your score
also, getting a lower car interest rate is more important than the CC you want in March, so i would get the car loan first, then app for the CC a week or two later

otherwise you will have a new CC acct 2-3 months for apping for the car loan - which could raise the interest rate they give you

I understand that paying down the financed NT equipment would help, but as I said I'm not willing to do that. So I'm just looking for information as to whether the other cards should all be at 0, or if a small balance on less than 50% of my total cards should be fine.

Both applications are going to be through my CU. I want to scoop the card during the SUB period, so it will just depend as we get closer if I would be willing to delay it until after the car.

Re: Next Best Option - Can't do AZEO

SouthJamaica — Thu, 07 Jan 2021 23:43:46 GMT

@recoveringfrombk7 wrote:
I want to put my best foot forward for some apps coming up in March (a CC - they will pull TU9) and May/June (Car - they will pull EQ9). I am carrying a balance on a TD/NordicTrack 0% for 36 months. I could afford to pay it off, but I am unwilling to do so given the pandemic. I'd rather keep the cash on hand given I'm not paying interest. It's still pretty high (76% of limit). I will be trying to get a CLI on it to lessen the utilization. I have 6 other cards. What is the next best option AFTER AZEO? Is having the one account reporting from NT better than just staying under use on 50% on my cards? Normally I just PIF when statements cut, but I would like to look good for these two apps given the current climate. Thanks for the help!

I'm having trouble understanding what kind of account it is. It sounds like an installment loan or consumer finance account, rather than a credit card. If it's a revolver, you want to get the balance down to 28%. If it's an installment loan you want to get the balance down to 9% of the original amount (assuming you have no other installment loans).

Re: Next Best Option - Can't do AZEO

Anonymous — Fri, 08 Jan 2021 03:29:55 GMT

Good question from SJ above regarding the account type. If it's not a revolver, it's still possible for OP to arrive at AZEO.

I agree with the other post above where if OP has scores that are on the fence between a better interest rate on the upcoming loan that holding out on the CC until after obtaining the loan would be the smartest financial move. If it wouldn't matter, sure go for the CC first.

But as a very simple answer to the original question as to what is the next best option to AZEO, quite simply it would be AZE2.

Re: Next Best Option - Can't do AZEO

recoveringfrombk7 — Fri, 08 Jan 2021 16:09:29 GMT

@SouthJamaica wrote:
@recoveringfrombk7 wrote:
I want to put my best foot forward for some apps coming up in March (a CC - they will pull TU9) and May/June (Car - they will pull EQ9). I am carrying a balance on a TD/NordicTrack 0% for 36 months. I could afford to pay it off, but I am unwilling to do so given the pandemic. I'd rather keep the cash on hand given I'm not paying interest. It's still pretty high (76% of limit). I will be trying to get a CLI on it to lessen the utilization. I have 6 other cards. What is the next best option AFTER AZEO? Is having the one account reporting from NT better than just staying under use on 50% on my cards? Normally I just PIF when statements cut, but I would like to look good for these two apps given the current climate. Thanks for the help!
I'm having trouble understanding what kind of account it is. It sounds like an installment loan or consumer finance account, rather than a credit card. If it's a revolver, you want to get the balance down to 28%. If it's an installment loan you want to get the balance down to 9% of the original amount (assuming you have no other installment loans).

It lists as a credit card on the reports. I do not want to pay it down though is why I'm saying I cannot do AZEO. It's 0% financing and I'd rather hold onto the 3k cash that's left on that account. So I'm basically asking in light of that, what is the best thing I can do? Should I pay everything else to 0 and have that be my only balance?

Re: Next Best Option - Can't do AZEO

SouthJamaica — Fri, 08 Jan 2021 18:21:16 GMT

@recoveringfrombk7 wrote:
@SouthJamaica wrote:
@recoveringfrombk7 wrote:
I want to put my best foot forward for some apps coming up in March (a CC - they will pull TU9) and May/June (Car - they will pull EQ9). I am carrying a balance on a TD/NordicTrack 0% for 36 months. I could afford to pay it off, but I am unwilling to do so given the pandemic. I'd rather keep the cash on hand given I'm not paying interest. It's still pretty high (76% of limit). I will be trying to get a CLI on it to lessen the utilization. I have 6 other cards. What is the next best option AFTER AZEO? Is having the one account reporting from NT better than just staying under use on 50% on my cards? Normally I just PIF when statements cut, but I would like to look good for these two apps given the current climate. Thanks for the help!
I'm having trouble understanding what kind of account it is. It sounds like an installment loan or consumer finance account, rather than a credit card. If it's a revolver, you want to get the balance down to 28%. If it's an installment loan you want to get the balance down to 9% of the original amount (assuming you have no other installment loans).

It lists as a credit card on the reports. I do not want to pay it down though is why I'm saying I cannot do AZEO. It's 0% financing and I'd rather hold onto the 3k cash that's left on that account. So I'm basically asking in light of that, what is the best thing I can do? Should I pay everything else to 0 and have that be my only balance?

Yes. And then you would be doing AZEO.

But: some accounts don't work as your only AZEO reporting balance. So you should conduct this experiment:

-see what your scores are with only this account reporting

-see what your scores are with a small balance reporting on one other account which is a bank card

Then you'll have your answer.

Re: Next Best Option - Can't do AZEO

HeavenOhio — Fri, 08 Jan 2021 19:55:26 GMT

@recoveringfrombk7, you might want to pay the card down to 68% and hope that crossing the threshold tacks on some points.

Aside from that, you can expedite the experiment that @SouthJamaica suggests by using one of your Discover cards. They'll report upon request, so you can compare balances of $0 and say $10 in a fairly short time span.

Re: Next Best Option - Can't do AZEO

recoveringfrombk7 — Fri, 08 Jan 2021 20:03:29 GMT

Thank you both!

@HeavenOhio I actually called TD and took a hard pull on EX for a CLI since I have no plans to app for anything that hits EX for years. They only did a small bump (4500 > 5500), but it did take me from ~75% to 62%, so maybe that will help.

Really appreciate everyone's help. Trying to figure out timing on the car app vs the cc app. We may delay the car until July (we don't strictly need the car until August), and the SUB on the card I want is typically active starting March (NFCU Flagship). I could do the car earlier I guess, but I am working from home due to the pandemic and still making payments on my current car (giving it to my son). I owe about 3200 as of today, but again at 0% financing/payment is 400 per month, and was also IIB so it's not like it's on my reports anyhow. Just trying to figure out the proper timing on everything.

Re: Next Best Option - Can't do AZEO

Anonymous — Sat, 09 Jan 2021 03:11:30 GMT

Great advice above. You may or may not take a penalty for not having a bankcard report a balance. Plus you want to look and see what it does on version 9.

Either you’re best with only it reporting a balance, or with it and one bankcard reporting a balance. Test it and see and getting under 69.5% is a great recommendation since you don’t want to pay it off, at least get under that threshold.

Coincidentally since they are going to be pulling version 9, isn’t there typically an increase in score for going to a new account scorecard just like there is a drop for going to a no new accounts scorecard in 9? Just the opposite of version 8 typically.

obviously it’s profile dependent, but you might actually get a boost if you don’t have a revolver under a year and you grab the revolver since they’re going to pull 9. Thoughts everyone?

Re: Next Best Option - Can't do AZEO

recoveringfrombk7 — Sat, 09 Jan 2021 03:21:27 GMT

@Anonymous wrote:
Great advice above. You may or may not take a penalty for not having a bankcard report a balance. Plus you want to look and see what it does on version 9.

Either you’re best with only it reporting a balance, or with it and one bankcard reporting a balance. Test it and see and getting under 69.5% is a great recommendation since you don’t want to pay it off, at least get under that threshold.

Coincidentally since they are going to be pulling version 9, isn’t there typically an increase in score for going to a new account scorecard just like there is a drop for going to a no new accounts scorecard in 9? Just the opposite of version 8 typically.

obviously it’s profile dependent, but you might actually get a boost if you don’t have a revolver under a year and you grab the revolver since they’re going to pull 9. Thoughts everyone?

Thanks for chiming in @Anonymous I actually got a CLI that put me down to 62%, so it's nice to know that should help. I also have two revolvers from 8/2020, nothing since. I'll play around to see if that account counts. I was under the impression that AZEO really means that the O is <8.9% or whatever the bottom threshold is, hence why I was saying I'm not able to do it. I can definitely get down to the TD card only and then see what happens with my next report. Thanks again everyone.

Re: Next Best Option - Can't do AZEO

Anonymous — Sat, 09 Jan 2021 04:00:11 GMT

@recoveringfrombk7 wrote:
@Anonymous wrote:
Great advice above. You may or may not take a penalty for not having a bankcard report a balance. Plus you want to look and see what it does on version 9.

Either you’re best with only it reporting a balance, or with it and one bankcard reporting a balance. Test it and see and getting under 69.5% is a great recommendation since you don’t want to pay it off, at least get under that threshold.

Coincidentally since they are going to be pulling version 9, isn’t there typically an increase in score for going to a new account scorecard just like there is a drop for going to a no new accounts scorecard in 9? Just the opposite of version 8 typically.

obviously it’s profile dependent, but you might actually get a boost if you don’t have a revolver under a year and you grab the revolver since they’re going to pull 9. Thoughts everyone?
Thanks for chiming in @Anonymous I actually got a CLI that put me down to 62%, so it's nice to know that should help. I also have two revolvers from 8/2020, nothing since. I'll play around to see if that account counts. I was under the impression that AZEO really means that the O is <8.9% or whatever the bottom threshold is, hence why I was saying I'm not able to do it. I can definitely get down to the TD card only and then see what happens with my next report. Thanks again everyone.

@recoveringfrombk7 congratulations on the CLI. Well you should be in a new account scorecard until August 2021 anyway.

and yes, at best, AZEO would have that one account with less than a $100 balance, but you get as close as you can.

Our concern here is the account is not a bankcard. Sometimes you get a partial penalty when you have only have a retail card reporting. so that's why the advice to test it out.

Re: Next Best Option - Can't do AZEO

recoveringfrombk7 — Sat, 09 Jan 2021 04:23:48 GMT

@Anonymous I'll update with DPs. Do you think the additional revolver will cause significant harm to EQ9 then, if I've already got new account that are less than a year anyhow?

Re: Next Best Option - Can't do AZEO

HeavenOhio — Sat, 09 Jan 2021 04:42:01 GMT

@recoveringfrombk7, you're looking at Navy. They're not that fussy, and they're not going to see a single balance at 62% of its card's limit as a problem.

If you've had your current Navy card for a while and your history has been decent since you've opened it, you should be good to go for a second card.

Re: Next Best Option - Can't do AZEO

Anonymous — Sat, 09 Jan 2021 05:02:29 GMT

@recoveringfrombk7 wrote:
@Anonymous I'll update with DPs. Do you think the additional revolver will cause significant harm to EQ9 then, if I've already got new account that are less than a year anyhow?

@recoveringfrombk7 just the inquiry and if you happen to be on a threshold for average ages.

Re: Next Best Option - Can't do AZEO

recoveringfrombk7 — Sat, 09 Jan 2021 15:19:28 GMT

@HeavenOhio wrote:
@recoveringfrombk7, you're looking at Navy. They're not that fussy, and they're not going to see a single balance at 62% of its card's limit as a problem.

If you've had your current Navy card for a while and your history has been decent since you've opened it, you should be good to go for a second card.

@HeavenOhio Want to look good for the car loan too. This is my third card with them, and it's been a little under a year since my 2nd. I also bank with them. On my second card I got the lowest interest rate despite my 2yr old bk, so just trying to do my best with both

Re: Next Best Option - Can't do AZEO

Anonymous — Sun, 10 Jan 2021 01:08:56 GMT

Still it depends on where your score is, if you’re on the edge of anything for a different rate. And you may get aging points before then, who knows?

Re: Next Best Option - Can't do AZEO

recoveringfrombk7 — Wed, 03 Feb 2021 23:49:37 GMT

@Anonymous

Just some updates ... Paid off all balanced before post, except just one Discover card at $12/$3200 and the NordicTrack folks gave me that CLI, so the UTIL there is at 59% now

Last Month's Score -> This Month's Score

EQ8: 711 -> 715

EX8: 698 -> 700

TU8: 685 -> 691

EQ9: 704 -> 736

EX9: 689 -> 720

TU9: 694 -> 738

I'll be paying the Discover to 0, and then that will leave me with just the NT reporting. Will update again in a month when that falls off. The Version 9 scores moved a lot. I think this will obviously help with both apps since they are EQ9 and TU9. I don't really know how to determine the effect of applying for the new card in March and the Car loan around May. I have a lot of accounts, some bad obviously because of the BK that are closed. Do I count absolutely everything I see in my 3B to determine age? I just got my most recent report, so I can play around with this, but I need some guidance on what I should be looking for/counting. Also, whether or not my AU account from my husband matters.

Thanks everyone for your help and input.

Re: Next Best Option - Can't do AZEO

Anonymous — Thu, 04 Feb 2021 00:48:13 GMT

@recoveringfrombk7 wrote:

I'll be paying the Discover to 0, and then that will leave me with just the NT reporting.

Keep in mind SJs suggestion back in Post 7. Even though the NT is a CC, you want to make sure it's a major bank card that will count toward AZEO. If you drop Discover to $0 and see your scores drop and a negative reason statement associated with no revolving credit use you know that the NT card isn't good to be your AZEO account and should report a small balance back on Discover or another major bank card.

Re: Next Best Option - Can't do AZEO

recoveringfrombk7 — Thu, 04 Feb 2021 00:53:02 GMT

@Anonymous wrote:
@recoveringfrombk7 wrote:

I'll be paying the Discover to 0, and then that will leave me with just the NT reporting.
Keep in mind SJs suggestion back in Post 7. Even though the NT is a CC, you want to make sure it's a major bank card that will count toward AZEO. If you drop Discover to $0 and see your scores drop and a negative reason statement associated with no revolving credit use you know that the NT card isn't good to be your AZEO account and should report a small balance back on Discover or another major bank card.

Correct. I said I'd check for the DPs. So this is the first round with just the Discover reporting (except for my situation with EQ it seems), and next I'm going to zero out the Discover and see what happens up vs down.