Bust Out Score

[arkane]

My first takeaway is that the AZEO method is doubly beneficial -- not only do you optimize for FICO scoring, you're also helping to alleviate one of the concern factors when it comes bust out i.e. >1 card with >50% util.

Second thought being perhaps the Alliant SSL does more than help with the "credit mix" portion of FICO as well, as long as it counts as "credit union trade account", then that again is a mitigation factor when it comes to bust out.

Also NEVER pay a CC bill using a check EVER, and if you're from Nevada, Florida, or Arizona, move out. I mean the depressing heat alone is enough reason to get outta dodge anyway.

[BurgeoningHope]

I'd like to nominate this article for a pin.

I hadn't heard of a "bust-out" score either, and like the other poster, other than util I certainly look the part. It's excellent reinforcement of the notions of AZEO and gardening, as well as not going crazy with the SCT, especially when starting a rebuild. Also, as has been pointed out, that SSL at a credit union may provide benefit over and above expanding the types of credit on our records.

[arkane]

I honestly think this might be the source of many a "mysterious CLD/account closure/other AA" we read on here (and other places) every now and then.

[Anonymous]

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@arkane wrote:

My first takeaway is that the AZEO method is doubly beneficial -- not only do you optimize for FICO scoring, you're also helping to alleviate one of the concern factors when it comes bust out i.e. >1 card with >50% util.

Second thought being perhaps the Alliant SSL does more than help with the "credit mix" portion of FICO as well, as long as it counts as "credit union trade account", then that again is a mitigation factor when it comes to bust out.

Also NEVER pay a CC bill using a check EVER, and if you're from Nevada, Florida, or Arizona, move out. I mean the depressing heat alone is enough reason to get outta dodge anyway.

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I am a check writer. Which is somewhat odd for a millennial but I prefer writing checks (Keeps my bank account balanced).

[Anonymous]

Regarding checks, the trigger would be checks from multiple different sources.

@depdep8, do you do checks from bill payers or do you physically write out checks from a check book? Fellow millennial here, asking for a friend. Lol.

[Thomas_Thumb]

I pay all my bills by check. Works for me.

DW pays electronically. She went electronic back in 2005.  She lectures me monthly on the money I am wasting on stamps.  You would think after more than ten years of criticism without change she should get the hint and leave it alone. No doubt my wasteful stamp spending has set back our retirement timeline a few years. 

[Anonymous]

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@Anonymous wrote:
Regarding checks, the trigger would be checks from multiple different sources.

@Anonymous, do you do checks from bill payers or do you physically write out checks from a check book? Fellow millennial here, asking for a friend. Lol.

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I write out checks from a checkbook lol (I actually started out with the ones that make a carbon copy). I have not bothered with carrying my debit card from the moment I started getting credit cards. 

Thumb: I enjoy writing and mailing checks for some reason, it gives me an excuse to pick up cool stamps with superheroes and Disney characters (I guess I am feeding my inter-child).

[sjt]

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@arkane wrote:

My first takeaway is that the AZEO method is doubly beneficial -- not only do you optimize for FICO scoring, you're also helping to alleviate one of the concern factors when it comes bust out i.e. >1 card with >50% util.

Second thought being perhaps the Alliant SSL does more than help with the "credit mix" portion of FICO as well, as long as it counts as "credit union trade account", then that again is a mitigation factor when it comes to bust out.

Also NEVER pay a CC bill using a check EVER, and if you're from Nevada, Florida, or Arizona, move out. I mean the depressing heat alone is enough reason to get outta dodge anyway.

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Writing a check does not have an impact unless you are writing checks from several different entities and have a record of returned items.

[arkane]

The way the OP was worded, I think you start showing up on their radar if you pay your CC bills with checks from multiple banks, even if they don't bounce. Reason being the final phase of bust out involves bouncing checks from multiple sources, so it becomes an elevated risk factor.

In all fairness paying with checks from a single source is likely just fine, I just try to mitigate risk as much as possible.

[Anonymous]

I agree with the other folks -- fascinating and helpful initial post.

I did find this bullet surprising:

* Average age of oldest tradeline significantly shorter than other good credit customers (98 compared to 205 months).

The idea that non-bust consumer profiles have Age of Oldest Account of 17 years on average (!) is surprising.  Of course some consumers have one very old account (e.g. 20 years, 25 years) but I'd guess that most do not.

Some of the language in the other bullets was a bit confusing.  Specifically the word "account" was sometimes used to mean account (i.e. tradeline) and sometimes used to mean the consumer's entire credit profile:

• Much less likely to have an auto trade line than a good credit account (0.9 lines for bustouts compared to 1.8 for good accounts).
• Much less likely to have a credit union trade account (0.3 lines for bust-outs compared to 0.9 for good credit accounts)

"Good account" and "good credit account" means a good profile (the entire report taken together) whereas in the phrase "credit union trade account" it means tradeline.