topic Re: AZEO question in Understanding FICO® Scoring

AZEO question

Greenmach — Tue, 09 Feb 2021 01:56:10 GMT

Hey guys!

I'm trying to raise my SO mortgage scores and I got to thinking about how AZEO works for her. She has 1 CC and 1 AU (mine). I usually keep $5 or so on her AU and she keeps hers at $0 before statement cuts. Is she getting the most out of AZEO with only having 1 revolver in her name? She has a lot more issues than just that but, that's for a later post. 🤣

Re: AZEO question

chiefone4u — Tue, 09 Feb 2021 02:53:46 GMT

@Greenmach wrote:
Hey guys!
I'm trying to raise my SO mortgage scores and I got to thinking about how AZEO works for her. She has 1 CC and 1 AU (mine). I usually keep $5 or so on her AU and she keeps hers at $0 before statement cuts. Is she getting the most out of AZEO with only having 1 revolver in her name? She has a lot more issues than just that but, that's for a later post. 🤣

AZEO requires 3 credit cards for full benefit, works with more cards but not with fewer.

Part of what makes AZEO raise mortgages scores is no more than 1/3rd of cards reporting a balance.

As she is currently set up she could have three possible outcomes:

100% of cards reporting a balance.

50% of card's reporting a balance

0% of cards reporting a balance (which sometimes occurs even when the AU account has a balance).

All three of the above carry a penalty in scoring.

Re: AZEO question

Anonymous — Tue, 09 Feb 2021 03:39:11 GMT

Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card? Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?

Re: AZEO question

thornback — Tue, 09 Feb 2021 03:50:53 GMT

@Anonymous wrote:
Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card? Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?

I seem to recall reading a data point that a person with 1 primary and 1 AU had the best mortgage score outcome when both the primary and AU reported low balances.

With only the primary reporting, there was a penalty (presumably the AZ-AU penalty). With only the AU reporting, there was the AZ penalty. Both reporting a balance was the best scoring scenario.

Of course, I cannot find that post of the dp (and it is only one dp) but I believe I'm remembering correctly.

Re: AZEO question

AllZero — Tue, 09 Feb 2021 03:55:04 GMT

@Anonymous wrote:
Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card? Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?

calyx did a test. For EX2, it is best to do true AZEO. AU card reports zero. Unknown for TU4 or EQ5. I can only presume it may be the same if it follows the older scoring algorithm.

For your reading pleasure. Update: FICO2 experiment (is it worth it?)

Re: AZEO question

thornback — Tue, 09 Feb 2021 03:58:12 GMT

@AllZero wrote:
@Anonymous wrote:
Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card? Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?
calyx did a test. For EX2, it is best to do true AZEO. AU card reports zero. Unknown for TU4 or EQ5. I can only presume it may be the same if it follows the older scoring algorithm.

For your reading pleasure. Update: FICO2 experiment (is it worth it?)

Guess the best way to find how all 3 bureaus respond is for OP to test all scenarios- assuming they have time to do so.

Re: AZEO question

AllZero — Tue, 09 Feb 2021 04:07:26 GMT

@thornback wrote:
@AllZero wrote:
@Anonymous wrote:
Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card? Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?
calyx did a test. For EX2, it is best to do true AZEO. AU card reports zero. Unknown for TU4 or EQ5. I can only presume it may be the same if it follows the older scoring algorithm.

For your reading pleasure. Update: FICO2 experiment (is it worth it?)
Guess the best way to find how all 3 bureaus respond is for OP to test all scenarios- assuming they have time to do so.

I totally agree. Test it out and see what is the optimal outcome.

I gather data points and test it myself to see how it affects my profile. Plug for BBB, I did the From AZ --> AZEO --> 100% w/balances data just to see how it would work.

Re: AZEO question

Anonymous — Tue, 09 Feb 2021 04:17:05 GMT

If I had an AU account (I never have) I would love to replicate that test I did in 2018 today. I don't plan on ever having one, though.

Re: AZEO question

AllZero — Tue, 09 Feb 2021 04:38:32 GMT

@Anonymous wrote:
If I had an AU account (I never have) I would love to replicate that test I did in 2018 today. I don't plan on ever having one, though.

I don't have AU accounts either and unable to test it myself. I don't plan on AU accounts too. Trying to figure out the small nuances with FICO is hard enough with primary accounts.

Unfortunately, I can't offer any first hand experience to OP other than what I read.

Re: AZEO question

Greenmach — Tue, 09 Feb 2021 04:49:34 GMT

@AllZero

@Anonymous

@thornback

That's something to try this month. I'll have both cards report a small balance and see how her scores react. Both statements cut @ the EOM so I will update afterwards. Thanks guys!

Re: AZEO question

Anonymous — Tue, 09 Feb 2021 14:22:22 GMT

Sounds good, looking forward to the results.

Re: AZEO question

Anonymous — Sat, 13 Feb 2021 23:45:06 GMT

No. For the mortgage Scores you only want one account reporting a balance but it needs to be a bank card with a credit limit of $31,000 or less. There is no difference between authorized user accounts and primary accounts for the mortgage scores. Therefore one qualifying bankcard with a balance. True AZEO.

for version 8/9, you do the modified AZEO with a balance on an authorized user account that's not discounted.

for your best mortgage Scores you only want one, zero out the AU for your best score.

Re: AZEO question

Greenmach — Sun, 14 Feb 2021 14:31:33 GMT

@Anonymous

Hey thanks! That's the part I was confused on. If her only having her AU reporting was harming her mortgage scores more than having both report. I'm waiting till beginning of March when her scores update bc she's going to cross some thresholds and a few accounts have been PTD.

Re: AZEO question

Anonymous — Sun, 14 Feb 2021 16:20:12 GMT

No problem it’s a confusing concept but the models are different so they want different things