So I'm in the process of doing a z e o. Two of my cards report on the 3rd of each month. One card had an $8 balance, that was paid in full. Actually it was negative $8 because of a statement bonus I got. My other card that reports on the same day, I put a $30 charge on it. It has a higher credit limit so I wanted to keep the utilization around 1%. Unfortunately that card hasn't reported yet or at least it hasn't reflected via experian. My experience score took a 16-point hit, I'm assuming because all my cards zeroed out. I'm hoping that my card with the $30 on it that was also supposed to report on the 3rd reports today, combating the negative effect. Does anyone think that will be the case? Will my scores bounce back from this hit, immediately? Do I have to wait for a full cycle IE a month? Am I doing the a z e o wrong? Should I be doing it so two cards have a balance at some point, that seems like the only way that I can do it without this happening again. I've course want to maximize my score, however I'm not that concerned because I am currently gardening for at least 8 months. Thanks in advance for any help you guys can offer!
I hear you it seems like a pretty exact. I did however use the score simulator in the myfico app and it says if you pay off all your cards to zero you'll lose about 15 points, and I just inadvertently did that and sure enough I got a 16-point hit! So like I said I'm gardening now not going to take on any new applications so I suppose scrutinizing my score over a few points it's kind of stupid but it's a new hobby so I can't help myself LOL I suppose I'll Tinker around a little bit too see where the sweet spot is for me. Thanks very much for your Insight and taking the time to read my question. Best of luck!
Haha! Totally! Most of the simulators only tell me to let my credit age. There's no other advice to give, I suppose because I've essentially done everything I was supposed to.
They'll simulate scenarios if I do something detrimental like open another card Etc but that's all it just tells me to let my credit "age"
Thanks again for taking the time to read and answer best of luck with your mortgage or lack thereof
@Shmike wrote:So I'm in the process of doing a z e o. Two of my cards report on the 3rd of each month. One card had an $8 balance, that was paid in full. Actually it was negative $8 because of a statement bonus I got. My other card that reports on the same day, I put a $30 charge on it. It has a higher credit limit so I wanted to keep the utilization around 1%. Unfortunately that card hasn't reported yet or at least it hasn't reflected via experian. My experience score took a 16-point hit, I'm assuming because all my cards zeroed out. I'm hoping that my card with the $30 on it that was also supposed to report on the 3rd reports today, combating the negative effect. Does anyone think that will be the case? Will my scores bounce back from this hit, immediately? Do I have to wait for a full cycle IE a month? Am I doing the a z e o wrong? Should I be doing it so two cards have a balance at some point, that seems like the only way that I can do it without this happening again. I've course want to maximize my score, however I'm not that concerned because I am currently gardening for at least 8 months. Thanks in advance for any help you guys can offer!
You're overthinking this. I think you should stop trying to do AZEO, it's causing you too much anxiety.
If you pay everything on time, and pay some of your cards before the statement date, you'll be fine. You're trying to micromanage it to a degree that's not sustainable.
You're absolutely right! It's not exactly impossible because I know when my cards report approximately, within a day or two. So it's certainly sustainable. But I am without question overthinking it. I just feel like this is a productive hobby for one of a better word something my girlfriend and I do together. It's helpful, utilitarian and moderately entertaining!
Especially since I'm "gardening" I've committed to at least 8 months, perhaps a year. I just feel like it's something in my control, so why not? I wouldn't say it's stressing me out, per say. Perhaps it's getting more of my attention than it should. But again, it's not unhealthy. On the contrary I think. Something my significant other and I can do together. And it has a practical application, and real world consequences.
I have to say do value your Insight greatly, and appreciate any gems that you drop.
Thanks again SJ!
Utilization has no memory so your scores will change as your UTI changes. You got dinged the all zero penalty, not a big deal. Nothing wrong with AZE0 but I think it's more hassle than it's worth. I let several (not all because that would incur another penalty) of my cards report balances, not the same ones every month either, and have seen steady gains.
Every now and again I've let a 10% usage on one card report, then let it show a significant pay-down to 1% or less report on the same card the following month. Then report to zero after that. You're in the garden... try different things, for science.
Right exactly that was my plan. I'm in it for the long haul so these little insignificant fluctuations are inconsequential. It's funny because I had a number of cards reporting small balances and I didn't in fact get a hit for that once I had only one card reporting a small balance my score did go up substantially so yes that absolutely is another metric they used to measure utilization. I am in the interest of science as you said going to play around with it. Thanks very much for taking the time! Best of luck and all of your credit endeavors!