AZEO detail clarification

[W261w261]

I've seen this both ways so am asking those that know if there is a concensus:

I am an AU on two store accounts. I have been keeping 5 or 10 on one account or the other each month, but not both. Is one account sufficient, or should the balance be on both?

Also, I didn't know that the one account (other than the AU) should be a bank and not a CU. Assuming this is true, what is the reason? I know banks and CU's are different animals. 

[Sandman771]

Banks and CUs are both reported the same on a CR I'm sure. The difference I think you are referring to is store cards versus bank cards. Say a Visa/MC/Amex vs. a Lowes/HD/Zales card. Does that make sense?  Now what bearing they have on AZEO I have no idea since I don't practice that art yet. 

[blindambition]

Only one AU should report, following the same rule of AZEO.

Yes, it's possible for CU card to report differently. To save you a headache, it's best to use a lender like Citi, WF, any main lender.

[Sandman771]

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@blindambition wrote:

Only one AU should report, following the same rule of AZEO.

Yes, it's possible for CU card to report differently. To save you a headache, it's best to use a lender like Citi, WF, any main lender.

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Thank you @blindambition I never knew  that Cu cards and bank cards reported differently. 

[Anonymous]

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@Sandman771 wrote:

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@blindambition wrote:

Only one AU should report, following the same rule of AZEO.

Yes, it's possible for CU card to report differently. To save you a headache, it's best to use a lender like Citi, WF, any main lender.

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Thank you @blindambition I never knew  that Cu cards and bank cards reported differently. 

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Yes actually they do report differently, that's how the insurance algorithms are able to give you additional points for having credit union cards as opposed to bankcards. Although I don't think Elan branded credit union cards count as credit union cards. Lol.

But normally there's no differences for purposes of fico algorithms, but there are a few instances where credit union cards act funky or awkward, so just to avoid any possibility, best recommendation is to use a bankcard unless you have tested your credit union card and know that it works without a problem. I mean the majority work fine, but if its for a mortgage would you want to take a chance?

@W261w261 as for the authorized user card, preferably you want that to be a bankcard too, the one reporting a balance when optimizing 8/9. (When optimizing the mortgage scores, you only want one primary with a balance & no AUs with a balance.)

[SouthJamaica]

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@W261w261 wrote:

I've seen this both ways so am asking those that know if there is a concensus:

I am an AU on two store accounts. I have been keeping 5 or 10 on one account or the other each month, but not both. Is one account sufficient, or should the balance be on both?

Also, I didn't know that the one account (other than the AU) should be a bank and not a 

CU. Assuming this is true, what is the reason? I know banks and CU's are different animals. 

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1.  There has been some recent evidence to suggest that for people who have an AU card, there might be not one but two all zero penalties, one for the cards on which they are the principal, and one for cards on which they are AU's.  I must admit I was, and maybe still am, skeptical about it, but there is an authorized user on one of my accounts, so I compared the AU's scores with and without a $10 balance repoted on the account, and lo and behold the result seemed to confirm the theory.

2.  There has also been discussion to the effect that store cards and credit unions are not counted for purposes of the All Zero penalty.  I am skeptical about this one as well, but it's better to be safe than sorry.

[Anonymous]

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@SouthJamaica wrote:

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@W261w261 wrote:

I've seen this both ways so am asking those that know if there is a concensus:

I am an AU on two store accounts. I have been keeping 5 or 10 on one account or the other each month, but not both. Is one account sufficient, or should the balance be on both?

Also, I didn't know that the one account (other than the AU) should be a bank and not a 

CU. Assuming this is true, what is the reason? I know banks and CU's are different animals. 

---

1.  There has been some recent evidence to suggest that for people who have an AU card, there might be not one but two all zero penalties, one for the cards on which they are the principal, and one for cards on which they are AU's.  I must admit I was, and maybe still am, skeptical about it, but there is an authorized user on one of my accounts, so I compared the AU's scores with and without a $10 balance repoted on the account, and lo and behold the result seemed to confirm the theory.

2.  There has also been discussion to the effect that store cards and credit unions are not counted for purposes of the All Zero penalty.  I am skeptical about this one as well, but it's better to be safe than sorry.

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For #1, I kindly present for your consideration: https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Mas...

For #2, that is a new one, who said that? The only thing I'm aware of is a partial AZ loss with a store card and very rare errors on CU cards depending on if it was coded correctly. Please be specific and tell me what you're talking about. Thank you

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

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@Sandman771 wrote:

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@blindambition wrote:

Only one AU should report, following the same rule of AZEO.

Yes, it's possible for CU card to report differently. To save you a headache, it's best to use a lender like Citi, WF, any main lender.

---

Thank you @blindambition I never knew  that Cu cards and bank cards reported differently. 

---

Yes actually they do report differently, that's how the insurance algorithms are able to give you additional points for having credit union cards as opposed to bankcards. Although I don't think Elan branded credit union cards count as credit union cards. Lol.

But normally there's no differences for purposes of fico algorithms, but there are a few instances where credit union cards act funky or awkward, so just to avoid any possibility, best recommendation is to use a bankcard unless you have tested your credit union card and know that it works without a problem. I mean the majority work fine, but if its for a mortgage would you want to take a chance?

@W261w261 as for the authorized user card, preferably you want that to be a bankcard too, the one reporting a balance when optimizing 8/9. (When optimizing the mortgage scores, you only want one primary with a balance & no AUs with a balance.)

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This is great advice.   I have had no problem meeting AZEO (or I should say not losing any points) having any one of my revolvers report, whether it's a CU or a bank or a revolving store card.   I have a different card report each month so they rotate.   Never had any problem.   You can test it but just not when you're doing a mortgage app or something important.   

[Anonymous]

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@CH-7-Mission-Accomplished wrote:

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@Anonymous wrote:

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@Sandman771 wrote:

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@blindambition wrote:

Only one AU should report, following the same rule of AZEO.

Yes, it's possible for CU card to report differently. To save you a headache, it's best to use a lender like Citi, WF, any main lender.

---

Thank you @blindambition I never knew  that Cu cards and bank cards reported differently. 

---

Yes actually they do report differently, that's how the insurance algorithms are able to give you additional points for having credit union cards as opposed to bankcards. Although I don't think Elan branded credit union cards count as credit union cards. Lol.

But normally there's no differences for purposes of fico algorithms, but there are a few instances where credit union cards act funky or awkward, so just to avoid any possibility, best recommendation is to use a bankcard unless you have tested your credit union card and know that it works without a problem. I mean the majority work fine, but if its for a mortgage would you want to take a chance?

@W261w261 as for the authorized user card, preferably you want that to be a bankcard too, the one reporting a balance when optimizing 8/9. (When optimizing the mortgage scores, you only want one primary with a balance & no AUs with a balance.)

---

This is great advice.   I have had no problem meeting AZEO (or I should say not losing any points) having any one of my revolvers report, whether it's a CU or a bank or a revolving store card.   I have a different card report each month so they rotate.   Never had any problem.   You can test it but just not when you're doing a mortgage app or something important.   

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@CH-7-Mission-Accomplished please provide more information about when you did this and had only a retail card as the only card with a balance. You say you did not lose any points?

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

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@CH-7-Mission-Accomplished wrote:

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@Anonymous wrote:

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@Sandman771 wrote:

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@blindambition wrote:

Only one AU should report, following the same rule of AZEO.

Yes, it's possible for CU card to report differently. To save you a headache, it's best to use a lender like Citi, WF, any main lender.

---

Thank you @blindambition I never knew  that Cu cards and bank cards reported differently. 

---

Yes actually they do report differently, that's how the insurance algorithms are able to give you additional points for having credit union cards as opposed to bankcards. Although I don't think Elan branded credit union cards count as credit union cards. Lol.

But normally there's no differences for purposes of fico algorithms, but there are a few instances where credit union cards act funky or awkward, so just to avoid any possibility, best recommendation is to use a bankcard unless you have tested your credit union card and know that it works without a problem. I mean the majority work fine, but if its for a mortgage would you want to take a chance?

@W261w261 as for the authorized user card, preferably you want that to be a bankcard too, the one reporting a balance when optimizing 8/9. (When optimizing the mortgage scores, you only want one primary with a balance & no AUs with a balance.)

---

This is great advice.   I have had no problem meeting AZEO (or I should say not losing any points) having any one of my revolvers report, whether it's a CU or a bank or a revolving store card.   I have a different card report each month so they rotate.   Never had any problem.   You can test it but just not when you're doing a mortgage app or something important.   

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@CH-7-Mission-Accomplished please provide more information about when you did this and had only a retail card as the only card with a balance. You say you did not lose any points?

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I have all my monthly 3B FICO reports going back to 2014 and my CCT's going back to probably 2016.    I only have one store card left, which is Synchrony Amazon, so I will try to reproduce the effect in the next month and get back to you.   For me, my scores don't care whether I have one, two,  three or four cards reporting.    They just don't move my FICO scores.    

I'm not going to spend hours going through hundreds of reports but I will try it again in the next 30 to 60 days and let you know the effects on each of my FICO scores of having only Amazon report.     It just reported so it will be another month before I can try the experiment.