cancel
Showing results for 
Search instead for 
Did you mean: 

Concerning the AZEO method and other questions

JNesbit89
Valued Member

Concerning the AZEO method and other questions

This topic will have a few random questions, and I appreciate any detailed replies:

 

1. I've read that you traditionally don't want to use more than 30% of your TOTAL credit available (or at least, don't want 30% or more REPORTED to the bureaus). 

Question 1: Does this only apply to the total amount of credit available? If I am using 5% of my total credit, but 45% of one card, is there a negative with either the card company/bank, or the credit beaureas?

 

2. I froze my credit after I stupidly got a hard pull recently. It wasn't a hard pull applying for credit, but it was a hard pull nonetheless. Since there's almost nothing I can do about removing the hard pull, I froze all 3 of the credit companies.

Question 2: Does anything change credit-wise with the freeze? Can apps like Mint and Credit Karma still update normally. What if a company wants to do a random soft pull? 

 

3. With my credit frozen, I know I am not at risk of random credit pulls.

Question 3: Honestly, unless I'm mistaken, what's the benefit of not freezing your credit until you actually need to apply for something? To me it looks like its advantageous to keep it frozen 24/7, then unfreeze a week or so before mortgage shopping, getting a credit card, etc.

 

And some other random questions:

Question 4: If I manually apply for something while credit is frozen, it doesn't result in some kind of negative remark does it, on your profile? And it definitely prevents a hard pull right?

THANKS

9 REPLIES 9
SouthJamaica
Super Contributor

Re: Concerning the AZEO method and other questions


@JNesbit89 wrote:

This topic will have a few random questions, and I appreciate any detailed replies:

 

1. I've read that you traditionally don't want to use more than 30% of your TOTAL credit available (or at least, don't want 30% or more REPORTED to the bureaus). 

Question 1: Does this only apply to the total amount of credit available? If I am using 5% of my total credit, but 45% of one card, is there a negative with either the card company/bank, or the credit beaureas?

 

2. I froze my credit after I stupidly got a hard pull recently. It wasn't a hard pull applying for credit, but it was a hard pull nonetheless. Since there's almost nothing I can do about removing the hard pull, I froze all 3 of the credit companies.

Question 2: Does anything change credit-wise with the freeze? Can apps like Mint and Credit Karma still update normally. What if a company wants to do a random soft pull? 

 

3. With my credit frozen, I know I am not at risk of random credit pulls.

Question 3: Honestly, unless I'm mistaken, what's the benefit of not freezing your credit until you actually need to apply for something? To me it looks like its advantageous to keep it frozen 24/7, then unfreeze a week or so before mortgage shopping, getting a credit card, etc.

 

And some other random questions:

Question 4: If I manually apply for something while credit is frozen, it doesn't result in some kind of negative remark does it, on your profile? And it definitely prevents a hard pull right?

THANKS


1.  (a) The 30% number for aggregate utilization is, in my view, overhyped. Yes 30% plus is bad. But 30% is pretty bad too. In my profile the difference between 3% aggregate utilization and 30% utilization is around 70-80 points in FICO 8. So don't think 30% is great. (b) Aggregate utilization and individual account utilization are two wholly different factors. Even with low aggregate utilization, high individual account utilization will get you slammed.

 

2., 3. , and 4. Your other questions aren't so random.  They're all about freezes. I don't know the answer to your questions about freezes. I have never done that.

 

 


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 2 of 10
CreditMarathoner
Valued Member

Re: Concerning the AZEO method and other questions


@JNesbit89 wrote:

2. Question 2: Does anything change credit-wise with the freeze? Can apps like Mint and Credit Karma still update normally. What if a company wants to do a random soft pull? 

 

3. Question 3: Honestly, unless I'm mistaken, what's the benefit of not freezing your credit until you actually need to apply for something? To me it looks like its advantageous to keep it frozen 24/7, then unfreeze a week or so before mortgage shopping, getting a credit card, etc.

 

Question 4: If I manually apply for something while credit is frozen, it doesn't result in some kind of negative remark does it, on your profile? And it definitely prevents a hard pull right?

THANKS


I'm not an expert, so take these with a grain of salt, but in my experience:

 

2.  Companies that you already have relationships with can do soft pulls when frozen, at least.  It's possible that anyone can still SP but I'm not sure on that.  Most credit report companies like CK and MyFICO can still give you reports or scores when frozen, but there are some exceptions I've seen in the past (like Discover's free credit scores stopped working when I froze mine a couple years ago).  Nothing score-wise is effected by a freeze.  Some issuers will deny CLI requests when reports are frozen (certainly those who HP for them, but some who SP do too).  But others don't.

 

3.  Freezes are a security thing, in case someone tries to apply for something in your name, a freeze will prevent it.  It can also help keep you from "slipping up" when gardening if you don't have self control.  I normally keep my reports frozen and only unfreeze them for a few days if I'm going to apply for something.

 

4.  Any application or hard pull when reports are frozen will be denied, and you may get an email from the credit bureau indicating a hard pull was attempted, but it won't leave any negative marks on your credit.

 

Message 3 of 10
FireMedic1
Super Contributor

Re: Concerning the AZEO method and other questions


@JNesbit89 wrote:

This topic will have a few random questions, and I appreciate any detailed replies:

 

1. I've read that you traditionally don't want to use more than 30% of your TOTAL credit available (see below) (or at least, don't want 30% or more REPORTED to the bureaus). 

Question 1: Does this only apply to the total amount of credit available? If I am using 5% of my total credit, but 45% of one card, is there a negative with either the card company/bank, or the credit beaureas?

 

2. I froze my credit after I stupidly got a hard pull recently. It wasn't a hard pull applying for credit, but it was a hard pull nonetheless. Since there's almost nothing I can do about removing the hard pull, I froze all 3 of the credit companies.

Question 2: Does anything change credit-wise with the freeze? Can apps like Mint and Credit Karma still update normally. What if a company wants to do a random soft pull? It doesnt affect vantage sites or EX's free FICO score. Discover Scorecard it does block it. There are some other hits and misses but I cant remember all.

 

3. With my credit frozen, I know I am not at risk of random credit pulls.

Question 3: Honestly, unless I'm mistaken, what's the benefit of not freezing your credit until you actually need to apply for something? To me it looks like its advantageous to keep it frozen 24/7, then unfreeze a week or so before mortgage shopping, getting a credit card, etc. You can thaw the CRA's online for 1 day or however long you want. Just have to sign up online. I've been frozen for yrs. I go to apply. Remove the freeze for a day and apply. Takes at most 5 mins. But I know scammers, hackers, or shady folks from doing any HP's. Just piece of mind and JMO.

 

And some other random questions:

Question 4: If I manually apply for something while credit is frozen, it doesn't result in some kind of negative remark does it, on your profile? And it definitely prevents a hard pull right? If theres a freeze. No need to apply. It wont go thru anyway. No HP no negative remark.

THANKS


That dont use more than 30% use is plastered all over the internet. Theres a difference between use and whats reported after the statement cuts. You can use all you want of your credlit limit. get your cash back or whatever the perk is for using the card. But before the statement cuts. You pay it down on 1 card to less than 8.99% and the rest $0 to be at AZEO. Creditors make $ when you swipe that card. They like that. So say you want a CLI and you barely use the card. Chances are higher with heavy usage. Than no usage. (With certain creditors) Remember that if you cant pay it dont charge it. Dont make banks richer by paying interest. Hope this helps.






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 4 of 10
JNesbit89
Valued Member

Re: Concerning the AZEO method and other questions

Thanks for the response. It was informative. I do have one final question, concerning CLI's during a freeze. So it seems like I -could- attempt Credit Limit Increases for cards, and if its a soft pull and approved I win, and if it's a hard pull and denied I take no hit. There doesn't seem to be a downside. I mention this just because some credit cards I'm unsure if they do soft or hard pulls. Having frozen credit seems to be the best way to check without taking the hit.

Message 5 of 10
Jordan23ww
Valued Contributor

Re: Concerning the AZEO method and other questions


@JNesbit89 wrote:

This topic will have a few random questions, and I appreciate any detailed replies:

 

1. I've read that you traditionally don't want to use more than 30% of your TOTAL credit available (or at least, don't want 30% or more REPORTED to the bureaus). 

Question 1: Does this only apply to the total amount of credit available? If I am using 5% of my total credit, but 45% of one card, is there a negative with either the card company/bank, or the credit beaureas?

 

2. I froze my credit after I stupidly got a hard pull recently. It wasn't a hard pull applying for credit, but it was a hard pull nonetheless. Since there's almost nothing I can do about removing the hard pull, I froze all 3 of the credit companies.

Question 2: Does anything change credit-wise with the freeze? Can apps like Mint and Credit Karma still update normally. What if a company wants to do a random soft pull? 

 

3. With my credit frozen, I know I am not at risk of random credit pulls.

Question 3: Honestly, unless I'm mistaken, what's the benefit of not freezing your credit until you actually need to apply for something? To me it looks like its advantageous to keep it frozen 24/7, then unfreeze a week or so before mortgage shopping, getting a credit card, etc.

 

And some other random questions:

Question 4: If I manually apply for something while credit is frozen, it doesn't result in some kind of negative remark does it, on your profile? And it definitely prevents a hard pull right?

THANKS


1. So utilization on individual cards and total cards are both considered by the Fico scoring models. So if you are using more than 10% on any card you can start to experience losing points in that "Amount of Debt" category, even if you're only using 1% of your total limit (aggregate limit).

 

I saw this first hand when I have maxed out or used a significant amount of 1 of my card's limits close to the statement date, which prevented me from paying it below 30%. I purchased something on the closing date and when it reported on MyFico I lost points and got an alert that I was using 90% of my card's limit. Despite using 90% of that 1 card's limit it wasn't even 1% of my total credit limit.  

 

Although your score will be affected by spending over 10% of an individual card's limit or over 10% of your total limit, you get penalized more if you go over 30%, even more for going over 50% and once you reach 90%. To maximize getting the most points for that Fico score category I try to stay below 9% on all cards by their closing dates and I follow AZEO also.  

 




Message 6 of 10
CreditMarathoner
Valued Member

Re: Concerning the AZEO method and other questions


@JNesbit89 wrote:

Thanks for the response. It was informative. I do have one final question, concerning CLI's during a freeze. So it seems like I -could- attempt Credit Limit Increases for cards, and if its a soft pull and approved I win, and if it's a hard pull and denied I take no hit. There doesn't seem to be a downside. I mention this just because some credit cards I'm unsure if they do soft or hard pulls. Having frozen credit seems to be the best way to check without taking the hit.


Some issuers will issue SP CLIs with frozen reports and some won't.  The only way to know for sure is to either try, or search the forum for data points.

 

HP CLIs will never work with frozen reports.  No HP, no dice.  But, not a bad thing if you don't want a HP, you can prevent "accidents" by freezing your reports.

 

 

Message 7 of 10
JNesbit89
Valued Member

Re: Concerning the AZEO method and other questions

See this is interesting to me because I can see if I can get some limit increases without the risk of a hard pull. As long as it does not show up as a hard inquiry in any capacity (like, say I unfreeze my credit in a month; it wouldn't apply the attempted hard pull then would it).

And another question - if a card issuer gives you a random increase (my card went up by like $1,600 randomly). Do I need to wait months before formally requesting an increase?

Message 8 of 10
HowDoesThisAllWork
Frequent Contributor

Re: Concerning the AZEO method and other questions


@JNesbit89 wrote:

See this is interesting to me because I can see if I can get some limit increases without the risk of a hard pull. As long as it does not show up as a hard inquiry in any capacity (like, say I unfreeze my credit in a month; it wouldn't apply the attempted hard pull then would it).

And another question - if a card issuer gives you a random increase (my card went up by like $1,600 randomly). Do I need to wait months before formally requesting an increase?


Yes, if said Financial Institution has "general guidelines" as to when it is okay to have CLIs but no everywhere else.

 

So, If Capital One - as an example - has a "CLI every six months" guideline/rule and they "surprise, surprise" give you an unrequested CLI then you would need to wait for six months to pass before you could receive another CLI (notice how I specifically wrote "could receive" and not "could request"......you can ask for things all you like.  You may or may not receive, based on several things).

 

If, on the other hand, Synchrony (who provides my Lowes Credit Card, as an example) does not have such a "guideline/rule" in place and they give you a "surprise, surprise" unrequested CLI and you ask two days later for another you stand a fair shot (well.....again, it all depends on YOUR credit profile and their algorithms) for another CLI.

 

Does that make sense?

FICO8 Scores as of 2021 JULY 21:


FICO Auto 2/4/5 Scores as of 2021 JULY 21:


FICO Bankcard 2/4/5 Scores as of 2021 JULY 21:


FICO Mortgage 2/4/5 Scores as of 2021 JULY 21:


Starting Score: Exp 699
Current Score: Exp 699
Goal Score: Exp 750


Take the myFICO Fitness Challenge
Message 9 of 10
SDMarik
Valued Member

Re: Concerning the AZEO method and other questions

Just to piggy back on what others have said, In my expierence it's best to have lower utilizations across the cards. If you have an overall utilizaion of 15% but it's all on one card that is maxed out (or over limit), that will usually provide a lower score than if you had it over 3 cards all with <10%. A while back I had an overall Utilization of around 8%, but most of it was on one card that was at 101%. So while my overall util was good, having one card maxed out showing 100% was definately hurting my score. As soon as I paid that card it took my Util down to only 6% but my score shot up about 15 points.



Current Scores:
EX Fico8: 762
TU Fico8: 767
EQ Fico8: 752

Goal Scores:
EX Fico8: 810
TU Fico8: 805
EQ Fico8: 800
currently in the garden until 1/2022


Message 10 of 10
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.