is there a Min Balance $ amount for AZEO

[Anonymous]

@IodineNightSky Let me take this opportunity to explain about truncating and rounding. Fico uses standard rounding. The algorithm does anyway. What a CMS shows you, I can't tell you what they're doing.

But here's the issue, when a creditor transmits your balance to the CRA, the metro2 format requires the cents be truncated. So that means every balance of the CRA has has zeros at the end. So the algorithm never sees anything but zeros at the end of a currency amount.

So to answer your question if you left three cents, it would see it as a zero at the bureau and that's what the algorithm would be fed, zero.

now if you had at least a dollar balance reporting on a qualifying bankcard, the algorithm would also see that and you would not get the AZ loss. 

my belief is the no revolving activity code which comes with the AZ loss is tied to the revolving balance metric. So as long as you have one dollar reported, you are good. Yes, some lenders do forgive less than a couple dollars, so I always recommend $5 to $20.

that's why you can have 0% utilization but yet not realize an AZ loss. Because it's not tied to utilization, it's tied to revolving balance. At least that's my theory and belief. 

The cutoff's are just for 5/4/2, noted by @AllZero above, so the exclusion would not occur on version 8/9. 

But, for optimal Scoring across versions, anywhere between $5- $100 is fine. The first reported balance Threshold we know of is at $147 on a mortgage score. 

[Anonymous]

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@gdale6 wrote:

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@Anonymous wrote:

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@gdale6 wrote:

Fico always rounds up so $15 on a 25K card would be 1%. I would not go much below $10, this is my opinion. You can also play with how many cards report my best Fico seems to be with 2 of 18 reporting. I lost 3 Fico 8 points for paying off my second card last month and only having 1 report 27% of its CL (4% overall util).

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@gdale6 I seriously doubt you lost three points for going from two accounts with a balance to one account with a balance. Something else had to be going on. 

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I have been experimenting for years with this, I know of what I speak. I have zero derogs and I paid off the 200 balance on my second card so it reported zip, the account reporting was paid down 500 bucks, so yeah it was because the second account stopped reporting a balance. My best Fico 8s are actually achieved with 3 accounts of 18 reporting a balance.

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@gdale6 was this on 542 with the paid off account over the cutoff? May I ask which scorecard you're on?

This is the first time I've ever heard of positive Score change resulting from increasing the number of accounts with a balance other than the requisite 1 loan and 1 revolver. would love to hear more about it. Learn of new things every day.

Edited

Any other members see any isolated score increases from increasing the number of accounts with a balance? (obviously excluding going from no bankcard with a balance [AZ loss] to having a bankcard with a balance.)

[Anonymous]

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@Anonymous wrote:

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Any other members see any isolated score increases from increasing the number of accounts with a balance? (obviously excluding going from no bankcard with a balance [AZ loss] to having a bankcard with a balance.)

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Nope.  The only exception I can think of would be the allowing of an AU account to report a balance if none had one previously, but that wouldn't be on all scoring models.

[Anonymous]

Edited:

True, good catch. or

3. possibly from adding the second or third bankcard, or

4. the only loan, if it reported it under 64.5%/9.5%, or

5. maybe even from adding the fourth or fifth account (whichever causes the account to be reassigned to a thick profile for the particular version).

[SouthJamaica]

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@IodineNightSky wrote:

Assume someone has 100k or more in credit limits. 

Is there a min balance on an account to get AZEO optimazation? 

could the balance be 1 cent on one card? i suppose not because perhaps the creditor wouldnt report any balance due to rounding...

can your balance be $15 on a $25k limit card and all other balances at 0 and still get AZEO optimization? but that's not even 1%...

or does the balance need to be at least 1% of the card limit? 

or does the balance need to be at least 1% of your cumulative card limits? 

applying for a mortgage soon and want to eek out every last point. 

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I agree with @gdale6 and would not go below $10.