topic Re: Azeo emergency! in General Credit Topics

Azeo emergency!

Shmike — Thu, 07 Dec 2023 00:31:58 GMT

Need some help folks!

So two of my cards report on the 3rd. I had one of them paid off because it reported last month. The other one I left a $25 balance, approximately 1%. The zero balance reported first and brought my score down substantially 17 points and Experian and so far 23 points and Equifax! The $25 card my current rotating balance card reported yesterday. However, the damage is done! How long will it take for my scores to bounce back? Should I have lost that much for simply letting all my cards zero out? Please help!

Re: Azeo emergency!

CreditCuriosity — Thu, 07 Dec 2023 00:44:35 GMT

FICO has no memory. Next cycle when they report if you practice AZEO you will recover your points. I suggest you don't follow that or you will be panicking like this for no reason. I am not certain of your scores but lenders are not going to care you having a 715 vs a 730 type of scenario. Lenders like seeing use so this is likely good for you!

Re: Azeo emergency!

Shmike — Thu, 07 Dec 2023 00:47:42 GMT

I really hope so! Because I went from from the 780s to the 750s! 760 I think is the "very good" cut off so I think it is a substantial hit! I went from 782 to 757! So I guess to truly do a z e o two cards would have to report balances at some point in the month, correct?

Re: Azeo emergency!

CreditCuriosity — Thu, 07 Dec 2023 00:50:15 GMT

@Shmike wrote:
I really hope so! Because I went from from the 780s to the 750s! 760 I think is the "very good" cut off so I think it is a substantial hit! I went from 782 to 757! So I guess to truly do a z e o two cards would have to report balances at some point in the month, correct?

Going to give yourself a short life if you worry about things like this. As stated FICO has no memory and will recover if you want to do AZEO Only time I would consider that is if going for a mortgage or possibly a car. Relax life is going to be fine . Take care.

Re: Azeo emergency!

Jnbmom — Thu, 07 Dec 2023 00:52:16 GMT

I agree with @CreditCuriosity . Your scores should bounce back nothing to be that alarmed about . And AZEO is all except ONE , so all balances should reflect zero expect leave one with a small balance .

i personally don't bother with that and don't really see my scores move too much . I can see for some that are sweezing every point for a mortgage approval .

Re: Azeo emergency!

markbeiser — Thu, 07 Dec 2023 04:31:51 GMT

It isn't an emergency if you are not apping for new credit.
You are not apping for new credit are you?
You are chilling out and gardening arn't you?🤨

Re: Azeo emergency!

Thomas_Thumb — Thu, 07 Dec 2023 04:48:04 GMT

If you must play the AZEO game vary between 2 and 1 reporting to avoid AZ. For the majority of profiles AZE2 will not drop score vs AZE1. If you are one of the unfortunates with a skitish profile, AZE2 still should not drop score more than 5 points.

Re: Azeo emergency!

MarkintheHV — Thu, 07 Dec 2023 10:58:52 GMT

Anything above 740 gets you top tier for credit. I used to AZEO but after awhile, I stopped doing it because I am not applying for anymore credit and the point difference isnt important

Re: Azeo emergency!

Shmike — Thu, 07 Dec 2023 12:51:44 GMT

Touche sir! However the point fluctuation is not conducive to my OCD LOL. Thanks for the reminder though! And yes I am gardening well until next year.

@markbeiser wrote:
It isn't an emergency if you are not apping for new credit.
You are not apping for new credit are you?
You are chilling out and gardening arn't you?🤨

Re: Azeo emergency!

Horseshoez — Thu, 07 Dec 2023 13:29:19 GMT

@Thomas_Thumb wrote:
If you must play the AZEO game vary between 2 and 1 reporting to avoid AZ. For the majority of profiles AZE2 will not drop score vs AZE1. If you are one of the unfortunates with a skitish profile, AZE2 still should not drop score more than 5 points.

I guess I'm lucky, my profile only seems to get temporarily whacked 15-20 points when I hit AZ; AZE1, AZE2, and AZE3 don't result in even a 1 point loss.

Re: Azeo emergency!

Shmike — Thu, 07 Dec 2023 18:57:21 GMT

Yeah I'm just going to shoot for AZE2 this way I'll definitively have at least one reporting if they fall on the same day again.

Re: Azeo emergency!

Shmike — Thu, 07 Dec 2023 18:58:22 GMT

Yes sir I learned that the hard way going to stick with AZE2 as a preventative measure

Re: Azeo emergency!

markbeiser — Thu, 07 Dec 2023 20:31:14 GMT

@MarkintheHV wrote:
Anything above 740 gets you top tier for credit. I used to AZEO but after awhile, I stopped doing it because I am not applying for anymore credit and the point difference isnt important

Not always.
Since I hit the 780+ range on EQ and EX, I've gotten offers that are a little better than when I was in the 750-760 range looking at the same products.

Re: Azeo emergency!

Shmike — Thu, 07 Dec 2023 20:34:49 GMT

WORD! 👌

Re: Azeo emergency!

Shmike — Thu, 07 Dec 2023 20:38:06 GMT

Not that it matters at this point anyway, I have to fall back for at least 6 months probably even a year. I can't get a decent card or a decent credit limit to save my financial future! LOL hopefully that changes after some of my hard inquiries fall off!🤞

Re: Azeo emergency!

FalconSteve — Tue, 12 Dec 2023 08:05:10 GMT

@CreditCuriosity wrote:
FICO has no memory. Next cycle when they report if you practice AZEO you will recover your points. I suggest you don't follow that or you will be panicking like this for no reason. I am not certain of your scores but lenders are not going to care you having a 715 vs a 730 type of scenario. Lenders like seeing use so this is likely good for you!

That's actually not true at all. "FICO has no memory" was true a long time ago and if the bank use an old version, but mortgage lenders are required to use trending scores and they DO have a memory.

That said, I would not worry too much about AZEO and trending scores, unless you are very borderline for approval, you aren't likely to be affected at all. Rates aren't typically affected either, just get back to AZEO as soon as you can an stay on it... a one month blip isn't a big deal.

I worked at a credit union, my late father worked at the state's largest credit union (in mortgages), before that at several banks when I was young. My mom was a realtor, before she became an in-house appraiser at a bank. Man, I didn't stand a chance...

Anyway, you should be fine, OP (despite FICO's limited memory)

Re: Azeo emergency!

FalconSteve — Tue, 12 Dec 2023 08:09:33 GMT

@Shmike wrote:
I really hope so! Because I went from from the 780s to the 750s! 760 I think is the "very good" cut off so I think it is a substantial hit! I went from 782 to 757! So I guess to truly do a z e o two cards would have to report balances at some point in the month, correct?

In my experience, allowing 2 cards to report a small balance (even $1), is enough for FICO to consider them "active" credit and two "active" cards is safer (and scores higher, almost as high as one card) than zero cards (that's really bad imo).

Re: Azeo emergency!

Horseshoez — Tue, 12 Dec 2023 13:22:13 GMT

@FalconSteve wrote:
@CreditCuriosity wrote:
FICO has no memory. Next cycle when they report if you practice AZEO you will recover your points. I suggest you don't follow that or you will be panicking like this for no reason. I am not certain of your scores but lenders are not going to care you having a 715 vs a 730 type of scenario. Lenders like seeing use so this is likely good for you!
That's actually not true at all. "FICO has no memory" was true a long time ago and if the bank use an old version, but mortgage lenders are required to use trending scores and they DO have a memory.
That said, I would not worry too much about AZEO and trending scores, unless you are very borderline for approval, you aren't likely to be affected at all. Rates aren't typically affected either, just get back to AZEO as soon as you can an stay on it... a one month blip isn't a big deal.
I worked at a credit union, my late father worked at the state's largest credit union (in mortgages), before that at several banks when I was young. My mom was a realtor, before she became an in-house appraiser at a bank. Man, I didn't stand a chance...

Anyway, you should be fine, OP (despite FICO's limited memory)

Ummm, I have yet to hear of a single mortgage lender using the new "Trending Scores" (i.e. FICO 10T or Vantage4); so for the purposes of this thread the "FICO has no memory" comment is correct, or at least correct for 99% of the mortgage lenders out there.

Re: Azeo emergency!

FalconSteve — Tue, 12 Dec 2023 15:02:14 GMT

@CreditCuriosity wrote:
@Shmike wrote:
I really hope so! Because I went from from the 780s to the 750s! 760 I think is the "very good" cut off so I think it is a substantial hit! I went from 782 to 757! So I guess to truly do a z e o two cards would have to report balances at some point in the month, correct?
Going to give yourself a short life if you worry about things like this. As stated FICO has no memory and will recover if you want to do AZEO Only time I would consider that is if going for a mortgage or possibly a car. Relax life is going to be fine . Take care.

Again, wrong, SOME FICO scores trend, they have for years. Banks are federally required to take trending scores in to consideration when approving mortgages. That said, trending scores don''t appear to be used to determine rates.

Personally, I would deploy AZE2 with <$10 balance and give up a point. That way, there isn't the risk of a massive drop from all zero except none (this happened to me when I discovered that Wells Fargo will write off a $2 balance... Apple Card will write off $0.99 so I get 50GB & 1 camera free monthly- but no CLI).

Re: Azeo emergency!

FalconSteve — Tue, 12 Dec 2023 15:05:20 GMT

@Jnbmom wrote:
I agree with @CreditCuriosity . Your scores should bounce back nothing to be that alarmed about

They will. Return to your old pattern or consider AZE2 and it'll it okay