"No Recent Revolving Balances" has me confused on AZEO

[Anonymous]

Well I'm supposed to be in the garden but since Affirm promised a soft pull I figured I would click the button. Silly because I didn't need to spread the payments out, I just figured another line item reporting might help in the long run.

Denied. No big deal, until I saw this as a reason:

NO RECENT REVOLVING BALANCES

Whhhhaaaaat. My cards are only 3-4 months old, there's that. I am also AU on a couple cards tho I know those don't count for anything. I have all cards (including AU) report 0 except for my Citi Secured. I have that report a small 6-8% balance. I let the Discover report a balance in month one or two of it being open. I believe the CapOne has reported a balance at least once. All cards are used regularly.

Is this a mistake? Should I let all of my cards report a balance for 3-6-12 months and then start following AZEO?

[Anonymous]

The denial reasons don't really have to be accurate. I'd assume they really mean not enough months of history/payments, since you only have a few months of history.

 If you want an installment reporting, you should do a SSL with a credit union.

[Anonymous]

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@Anonymous wrote:

The denial reasons don't really have to be accurate. I'd assume they really mean not enough months of history/payments, since you only have a few months of history.

 If you want an installment reporting, you should do a SSL with a credit union.

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Thanks for chiming in! I'm not sure what installment loans have to do with this, I've got two: one from Self (set it up during my rebuild before I realized I only needed one) and an auto loan that's paid off in full. The message seems to indicate revolving accounts are the issue, not installment.

I know they're fairly generic too, I was just wondering if anyone had any experience with rebuilding - which is why I posted this in that forum, but it appears to have moved for some reason - and if I should forget about AZEO and let the accounts report balances for a few months to show they're all being used regularly, and then start AZEO once my scores rebound as much as they can from having new cards.

I figure I'm gonna try that. Can't hurt really, there's still one more baddie I need to fall off and these accounts will need to age before my score gets back to normal.

[Anonymous]

Did you have at least a single balance reported on your credit report from one of your cards when they pulled your credit?

[Anonymous]

Yep, two of the three cards have a high or previous balance reported and one had a current balance at 6% of the limit.

[Anonymous]

previous and high balance don’t count for anything really. The only thing matters is if you have a current balance on at least one revolver when credit is pulled, if not, you get that reason code. So it is crazy if you get that code if you had a reported balance on a Citibank card. Makes me wonder if it was an old pull.

No you don’t have a need to maintain multiple balances. And those non-standard loans are actually going to cost you points as CFAs probably.

[Anonymous]

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@Anonymous wrote:
previous and high balance don’t count for anything really. The only thing matters is if you have a current balance on at least one revolver when credit is pulled, if not, you get that reason code. So it is crazy if you get that code if you had a reported balance on a Citibank card. Makes me wonder if it was an old pull.

No you don’t have a need to maintain multiple balances. And those non-standard loans are actually going to cost you points as CFAs probably.

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There was definitely a current balance reported, I've had at least one and up to two per monthly cycle. Discover has never reported a balance as I've paid it off before the statement cuts every month, maybe somehow that has something to do with it. I'm going to let it report a balance this month though obviously I can't check if that message is still there.

Also I did quite a bit of research on Self before opening it, specifically that it wasn't a CFA, and all resources (including them) say it is not.

[Anonymous]

Straight up there’s something wrong if you had a balance reported on the Citibank card. Because the negative reason code said no revolving balances, which costs you roughly 10 - 15 points for the AZ penalty.

No it has nothing to do with discover. It doesn’t necessarily look for positive payments (unless you’re brand new and don’t hardly have any or certain situations such as that), it looks for negative history. The pinnacle of payment history is the absence of any negative data.

Maybe self is not a CFA, I’m not sure. I just know that any loan that’s not from the bank or credit union runs that risk.

Check the date that was pulled and verify that you had a reported balance on that date. if so something is wrong.

[Anonymous]

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@Anonymous wrote:
Maybe self is not a CFA, I’m not sure. I just know that any loan that’s not from the bank or credit union runs that risk.

Check the date that was pulled and verify that you had a reported balance on that date. if so something is wrong.

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I'll look into it further when I have a moment (citi reported balance), appreciate your help.

As far as Self being classified as a CFA I'm almost positive they themselves disclaim that fact somewhere on their site, which I will also look for again when I have some free time. Primarily because I was worried about just that and if it ever comes back as such I will immediately start requesting that they remove it from my reports (especially if I can find the evidence that it claims to be otherwise). Not much help building credit if it turns out it's suppressing my score.

[Anonymous]

I believe the reason Self isn't considered a CFA is because the  institution backing the loan is Lead Bank, aka an actual bank, which is I believe one of the main differences between peer to peer lending (LendingClub) and point of sale lending (Affirm, Klasomethingorother). Oh well. 🤷🏼‍♂️ It is what it is now.