Another AZEO question?

[Yeliaba1]

I understand that optimally AZEO requires 1 of 3 revolvers reporting a balance less than 8.99% and one open installment loan doing the same. My question is in general questions regarding AZEO does everyone carry an installment loan less than the threshold.  If so, I need to alter my expectations as my installment loan is above that and will be for some time.

[Anonymous]

Carrying the loan at or below 8.9% for as long as possible will maximize your score potential. Even with it above the ideal usage, AZEO will still benefit you, just to a lesser extent. Just be sure to carefully maintain your card usage at the ideal levels to compensate as much as possible.

[Yeliaba1]

I’ll have 1 of 6 cards reporting a balance of $10 and all others at zero.  My installment loan is at 46% so is this really not considered AZEO?

[Anonymous]

AZEO your cards and whittle your installment loan down as soon as you can to a threshold preferably below 30% for as long as possible.
If you have 6 cards, I'm assuming $10 is way below 8.9%. It may make more sense to shoot for 8.9% on the cards using AZEO instead of the arbitrary $10 and focus on paying your installment loan down.

What are your current card limits? Someone a bit more eloquent may come along and explain this better.

[Yeliaba1]

Thank you for the reply.  I don’t think I’ve made myself clear though.  My question is do most consider this AZEO?  I can’t expect my scores to change in the same manner as someone with an installment loan balance below 8.9% and one revolver the same.  

[Anonymous]

AZEO - all zero except one. This is regarding your cards (revolvers).

Your installment loan is just gravy but is helpful under 30%.

[CreditInspired]

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@Yeliaba1 wrote:

I understand that optimally AZEO requires 1 of 3 revolvers reporting a balance less than 8.99% and one open installment loan doing the same. My question is in general questions regarding AZEO does everyone carry an installment loan less than the threshold.  If so, I need to alter my expectations as my installment loan is above that and will be for some time.

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If the installment loan is your mortgage, that won’t be less than 8.9% for ~25 years (assuming a 30-yr mortgage).

So the less than 8.9% is basically for CCs and secured loans where the goal is to get the loan for 5 years and pay down to 1-5% of balance (this only if you have no other installment loans). 

[Anonymous]

It is used imo when people are talking about just cc.
Obviously it would help score to bring installment loans down as much as can. I have 3 cc and 3 sc I've noticed in past it didn't matter if I let one or two cards report small balances. But this month to be sure since I might apply for a cc. I'm using azeo method. Plus brought utilization down to under 8.9 total.
Plus crossed other possible threshold s bringing individual card from 54% to 25 or so.
Best advice I've seen so far is let cc report 8.9% instead of 1% or 2% and pay as much as you can on installment loan

[Yeliaba1]

@dtk6802 thank you.  My real question is if you say you are using the AZEO method is your installment loan below 8.9??I’m more curious about how people are communicating they are using this method; with 1 reporting revolver below 8.9% and any installment loan or an installment loan reporting below 8.9%?  

[Anonymous]

With specific respect to AZEO, it applies only to your revolving accounts. As mentioned above, the loan is gravy. People always mention the loan because of the points you gain in credit diversity by having both revolvers and an installment account, but AZEO is specifically a revolving account method.