topic Re: Question on AZEO in Rebuilding Your Credit

Question on AZEO

Red1Blue — Wed, 03 Jun 2020 20:37:42 GMT

I hear lot about AZEO on this forum. I belive this applies to only people with clean credit report. If I have several COs and they are showing delenquent balances it does not matter if we manage the AZEO on the active accounts ? Am I correct ? Can some one give me more information on this ?

Re: Question on AZEO

TheKid2 — Wed, 03 Jun 2020 21:22:30 GMT

@Red1Blue wrote:
I hear lot about AZEO on this forum. I belive this applies to only people with clean credit report. If I have several COs and they are showing delenquent balances it does not matter if we manage the AZEO on the active accounts ? Am I correct ? Can some one give me more information on this ?

Us dirty scorecarders definitely still benefit from AZEO. We had bads, but we still get points for Util. I'm working to show this as I have been keeping a tracking spreadsheet as I cleared COs and lowered my Util to AZEO. I'm seeing point gains as I lower Util and get towards AZEO even with paid off COs.

Re: Question on AZEO

BmoreBull — Wed, 03 Jun 2020 21:42:13 GMT

If they are unpaid co's, they are definitely counting in your utilization as maxed out accounts. I'm not sure if you can be AZEO with a co that is still reporting a balance. I had a collection account that was reporting a balance and was able to do AZEO, but the charge off was reporting 0.

Re: Question on AZEO

TheKid2 — Wed, 03 Jun 2020 22:09:54 GMT

@BmoreBull wrote:
If they are unpaid co's, they are definitely counting in your utilization as maxed out accounts. I'm not sure if you can be AZEO with a co that is still reporting a balance. I had a collection account that was reporting a balance and was able to do AZEO, but the charge off was reporting 0.

Can confirm this - definitely impacts utilization if not reporting $0 balance. But, once all CO past due balances are paid, you do get the Util bonuses even being in a dirty scorecard.

Re: Question on AZEO

Red1Blue — Wed, 03 Jun 2020 22:11:46 GMT

@BmoreBull wrote:
If they are unpaid co's, they are definitely counting in your utilization as maxed out accounts. I'm not sure if you can be AZEO with a co that is still reporting a balance. I had a collection account that was reporting a balance and was able to do AZEO, but the charge off was reporting 0.

Hi @BmoreBull, Thank you very much for your message. I am thinking the same as you. If I have CO showing balance that is counting towards the Util it does not matter if I am bringing my active accounts balance to 0. I guess for AZEO to work once all the CO accounts should come to $0 and also get rid off the Collections from the report. There is no point in loosing my sleep until all the COs balance show $0 balance.

Re: Question on AZEO

Red1Blue — Wed, 03 Jun 2020 22:13:00 GMT

@TheKid2 wrote:
Can confirm this - definitely impacts utilization if not reporting $0 balance. But, once all CO past due balances are paid, you do get the Util bonuses even being in a dirty scorecard.

What is the definition of dirty scorecard ? What does it mean and what does it consist of ?

Re: Question on AZEO

TheKid2 — Wed, 03 Jun 2020 22:40:34 GMT

@Red1Blue wrote:
@TheKid2 wrote:
Can confirm this - definitely impacts utilization if not reporting $0 balance. But, once all CO past due balances are paid, you do get the Util bonuses even being in a dirty scorecard.
What is the definition of dirty scorecard ? What does it mean and what does it consist of ?

This is a great read to explain scorecards and segmentation:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Master-Thread-rev-5-17-20/td-p/6023348

Re: Question on AZEO

Anonymous — Wed, 03 Jun 2020 22:48:03 GMT

@Red1Blue wrote:
@BmoreBull wrote:
If they are unpaid co's, they are definitely counting in your utilization as maxed out accounts. I'm not sure if you can be AZEO with a co that is still reporting a balance. I had a collection account that was reporting a balance and was able to do AZEO, but the charge off was reporting 0.
Hi @BmoreBull, Thank you very much for your message. I am thinking the same as you. If I have CO showing balance that is counting towards the Util it does not matter if I am bringing my active accounts balance to 0. I guess for AZEO to work once all the CO accounts should come to $0 and also get rid off the Collections from the report. There is no point in loosing my sleep until all the COs balance show $0 balance.

the CAs have nothing to do with AZEO.

I had 7 CAs, 23 Defaulted SLs reporting (135k worth - half-ish OCs and half-ish CAs), and 1 CO per CRA x 2 (1 paid - Auto Loan and 1 unpaid - payday loan). I have never had issue implementing AZEO. None of the 135k balances count towards anything because they are considered "closed", so I still needed an installment loan for max credit mix.

What will hurt AZEO as far as baddies goes is unpaid CC COs/closed accounts.

You should see something like this on your CRs from Annual Credit Report:

Re: Question on AZEO

Red1Blue — Wed, 03 Jun 2020 23:05:55 GMT

@TheKid2 wrote:
This is a great read to explain scorecards and segmentation:
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Master-Thread-rev-5-17-20/td-p/6023348

Thanks. I looked at it. There is lot of information compiled by Birdman7 and put together. Very informative.

Re: Question on AZEO

Anonymous — Thu, 04 Jun 2020 00:28:33 GMT

I will add that maybe CAs do count, I do not have CAs for any delinquent revolving credit, so I cannot be 100% certain

It still does not hurt to implement AZEO with the COs for a couple reasons:

Depending on the amount of you current open revolving credit lines, you still may be able to cross some aggregate thresholds even with the COs acting as maxxed out credit. You may still be able to get to 88.9%, 68.9%, 48.9%, etc. Again depends on your total available credit vs utilized credit.

Second, you can still keep your open revolving lines of credit under appropriate individual thresholds (same as mentioned for aggregate thresholds). I am sure you already know about the thresholds, just reiterating.

Lastly, it helps you figure out timelines for reporting/posting for AZEO in the future. I certainly messed it up the first go around in regards to when posting charges and payments happen.

Good luck!

Re: Question on AZEO

tricie17 — Sun, 07 Jun 2020 18:22:37 GMT

As for myself, the AZEO method works fine even with a handful of charge offs. The difference for someone without a dirty report is the response from the credit bureaus. There are definitely number gains while paying down charge offs and installment loans just not the bigger jumps. To answer your question, AZEO works either way.

Re: Question on AZEO

Anonymous — Sun, 21 Feb 2021 15:19:26 GMT

Hello!

I am no expert at all, but I have an AU (0%), 1 CC (20%) and 2 charged off CCs.
My utilization on my myfico app is showing 134% usage...so doing the math the charged off cards are throwing my % out of wack.
Charge offs: I paid one in full last month and is now reporting paid, and closed (instant 22 point increase). The other I did a PFD and I'm waiting for it to be removed.

In a nutshell, I think your negative accts are effecting your utilization. If you have the funds try a PDF or even just paying in full. It'll help your utilization and looks better to creditors for paying the debt.
*I know this post is super late but someone else is bound to read it like I did, and maybe it'll help someone lol*