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Letting CR show high balances vs always AZEO

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masscredit
Valued Contributor

Letting CR show high balances vs always AZEO

I started rebuilding from a BK in May of last year and live by AZEO. I let my daily driver card (house bills) post a balance for charges made between the 1st and 5th of the month. I pay that down to zero the last day of the month (due date is on the first). I know it's not going to help score wise but for manual reviews, is there any benefit of letting high balances post once in while instead of most cards closing at zero? 

 

I'm changing things up and taking a score hit this month. I've run a little over $6K though 4 of my cards. I'm letting the balances post instead of AZEO. I'll get dinged for a month. Maybe it will help in the long run and maybe it won't...

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 676 / TU - 660 / EX - 673

Apple Card - $5500 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / SDFCU Secured - $4990 / Capital One QuickSiver - $4500 / Ally Master Card - $2800 / Walmart Mastercard - $2500

Andrews FCU SSL $1500
Message 1 of 19
18 REPLIES 18
FinStar
Moderator Emeritus

Re: Letting CR show high balances vs always AZEO


@masscredit wrote:

I started rebuilding from a BK in May of last year and live by AZEO. I let my daily driver card (house bills) post a balance for charges made between the 1st and 5th of the month. I pay that down to zero the last day of the month (due date is on the first). I know it's not going to help score wise but for manual reviews, is there any benefit of letting high balances post once in while instead of most cards closing at zero

 

I'm changing things up and taking a score hit this month. I've run a little over $6K though 4 of my cards. I'm letting the balances post instead of AZEO. I'll get dinged for a month. Maybe it will help in the long run and maybe it won't...


No, there isn't any actual benefit on any manual reviews. AI + algorithms have already made a risk decision on your creditworthiness so an UW is going to make a judgemental review on a variety of other factors based on their own internal policies. One of those could be...why so many new accounts in a short period of time post-BK? -- regardless of the rationale of "I wanted to rebuild as fast as I could". Just an example. 

But, you do you as far as how you want to manage things periodically.

Message 2 of 19
ForwardLooking
Regular Contributor

Re: Letting CR show high balances vs always AZEO

One thing I have noticed on my credit reports is they record how much I paid on my credit cards each month despite the fact that it was paid off by the statement date.  I would think that would be sufficient for any manual review and personally, would continue paying in full by the statement date to show I can manage my finances.

Message 3 of 19
SouthJamaica
Mega Contributor

Re: Letting CR show high balances vs always AZEO


@masscredit wrote:

I started rebuilding from a BK in May of last year and live by AZEO. I let my daily driver card (house bills) post a balance for charges made between the 1st and 5th of the month. I pay that down to zero the last day of the month (due date is on the first). I know it's not going to help score wise but for manual reviews, is there any benefit of letting high balances post once in while instead of most cards closing at zero? 

 

I'm changing things up and taking a score hit this month. I've run a little over $6K though 4 of my cards. I'm letting the balances post instead of AZEO. I'll get dinged for a month. Maybe it will help in the long run and maybe it won't...


No.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 4 of 19
EAT_SLEEP_JEEP
Valued Contributor

Re: Letting CR show high balances vs always AZEO


@masscredit wrote:

I started rebuilding from a BK in May of last year and live by AZEO. I let my daily driver card (house bills) post a balance for charges made between the 1st and 5th of the month. I pay that down to zero the last day of the month (due date is on the first). I know it's not going to help score wise but for manual reviews, is there any benefit of letting high balances post once in while instead of most cards closing at zero? 

 

I'm changing things up and taking a score hit this month. I've run a little over $6K though 4 of my cards. I'm letting the balances post instead of AZEO. I'll get dinged for a month. Maybe it will help in the long run and maybe it won't...


 

The only benefit if you could consider it that is watching your scores plummet for that month.

KEEPER EVERYDAY CARDS/ AMEX CHARLES SCHWAB PLATINUM NPSL/ AMEX GOLD NPSL / AMEX GREEN NPSL/ AMEX EVERYDAY PREFERRED $30,000 CL/ AMEX BLUE BUSINESS PLUS $5000 SL/ AMEX BLUE CASH EVERYDAY $18,000 / FIDELITY REWARDS VISA $23,500 SL/ NFCU FLAGSHIP $40,000 CL/ NFCU MORE REWARDS $40,000/ WELLS FARGO AUTOGRAPH $8200/ CITI COSTCO ANYWHERE VISA $6000 SL/ DISCOVER IT $3000 SL/ FNBO JEEP DRIVE PLUS CARD $7700/ APPLE CARD $6500/ CAPITAL ONE SAVORONE $3000 SL

SOCK DRAWERED / PAYPAL CREDIT LINE $1700




Message 5 of 19
masscredit
Valued Contributor

Re: Letting CR show high balances vs always AZEO


@EAT_SLEEP_JEEP wrote:

 

The only benefit if you could consider it that is watching your scores plummet for that month.


They've started reporting so I'm already taking a score hit. The numbers will go back to normal after I pay the cards down to zero soon. 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 676 / TU - 660 / EX - 673

Apple Card - $5500 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / SDFCU Secured - $4990 / Capital One QuickSiver - $4500 / Ally Master Card - $2800 / Walmart Mastercard - $2500

Andrews FCU SSL $1500
Message 6 of 19
OniStringer
Regular Contributor

Re: Letting CR show high balances vs always AZEO

I think the most beneficial thing you could do to your credit is AZEO. Holding balances will just hurt your score temporarily but it's not the end of the world from what i noticed, scores will go back up when you start PIF again or AZEO

Started with LOW 500s - Actively rebuilding as of early 2019
//
Message 7 of 19
mgood
Valued Contributor

Re: Letting CR show high balances vs always AZEO

No benefit to your score.

There is some speculation that some credit card issuers (Cap 1) may be more likely to grant a CLI if a higher balance posts on the statement once in a while.



EQ8 769, TU8 766, EX8 765 as of July 21
AZE7 - 3% Utl - New Cards: 1/6, 3/12, 6/24
Message 8 of 19
DONZI
Established Contributor

Re: Letting CR show high balances vs always AZEO

The way I see it, doing AZEO is a small score reward for doing a chore.

 

I think it has value as an approach to help avoid late payments.. I consider AZEO masking my 'normal' score which organically fluctuates. I prefer that organic up/down over the 'OOPS messed up AZEO this month' score tweaks.

 

I did AZEO for maybe a year after coming here and reading about it. Neat... Then I got kind of tired of doing it for various reasons. At first I was paying them too early.. make more charges and have to pay again. Later I have a few more cards and used them all and it's more of the same. Then finally I tried to time it close to the statement close dates... but dates, although not a ton, were scattered some.. I've been too lazy to check about moving dates.. I will probably add cards in time, more scattered dates perhaps.

 

Given the float time from statement cuts I can collect almost all the statements and pay them all at one time before the due dates. Seems a bit more efficient to me... in reality I may pay some the day the paper arrives depending on schedule, etc.

 

Ultimately, I think there is value in my process of checking my receipts off while reviewing the paper statements I insist they all send me.

 

- I like to borrow their money and pay them back in full as agreed. They give some ~25 days from statement cut, I see no reason to rush.

- T&C regarding disputes IIRC... goes something along the lines of a transaction which is to be disputed can't have been paid already.

- Stuff I buy with intent to use the extended warranty benefit, etc if needed.. Ensuring req'd receipt/docs are handled..easily found, etc.

 

..not to be confused with being blind until I get their statements in the mail, or the possibility that they will go unpaid or late due to not getting the papers. I'm on top of it despite my old ways.

 

In my case, I prefer to use the time granted to float the charges at least until I am certain it all checks out and sign off on it.

 

I don't see score changes big enough to worry about it one way or the other.

 

Maybe of no value, but I decided that I wanted balances to report so that my spending/payment shows... also it's a way to input more (meaningful?) data on my thin credit file faster.

 

Reason being, my spending and income may or may not make sense to an algo of human UW without more info.. I'd rather they get as much as they can from my reports before/if I ever talk with someone about it.

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[2020-12-09]=[EQ8|786]-[TU8|746]-[EX8|772] .... gardening until I can't (again).
[2023-10-01]=[EQ8|797]-[TU8|776]-[EX8|775]
Message 9 of 19
TRC_WA
Senior Contributor

Re: Letting CR show high balances vs always AZEO


@DONZI wrote:

 

 

I don't see score changes big enough to worry about it one way or the other.

 

 


My thoughts exactly.

 

I have some 0% CC debt reporting... with most cards reporting $0... and my daily driver (AmEx) cuts a statement for $2-$3k each month that I PIF.

 

OMG if I pay the AmEx off the day before the statement cuts I might gain 2 pts on my TU!!!!!

 

Don't care.

FICO8 current as of : 4-17-24 EQ: 724 TU: 707 EX: 706
Hard INQs last 12 months: EQ: 5 | TU: 8 | EX: 9
Verizon Visa $8500 Amex Delta Reserve $10,000 Care Credit $18,000
NFCU CashRewards $7500 Apple Card $7000 Best Buy $8000 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) 6.95%
NFCU motorcycle loan (2024 Harley Davidson Road Glide - Alpine Green & Chrome) 9.45%
Total CL: $64,000 --- Total CC UTI: 27% --- AAoA: 5.5 years --- Income: $200k
Last app: 4-6-24
Message 10 of 19
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