Question about AZEO method

[Anonymous]

Hi,

I've just gotten my Discover card. I now have 3 revolving accounts. My plan is to use the AZEO method to get my credit scores up.

I have not yet used my Discover card (it is activated). My question is, do I actually have to use it, and then pay down the balance to zero? Or can I leave it and just not use it? (again, it is activated).

My paypal is at 4% util. My opensky card of $200 is maxed out. I am paying the Opensky down to zero next week, and cutting the paypal down to 1% util from 4% util.

[Anonymous]

Just making sure I understood your question correctly. You want to know if you can just leave your Disco at zero and not use it at all?!

IMO, you'll see a point gain once you pay down your maxed out card. As far as using AZEO method to improve your scores, it will only temporarily. If you keep doing the AZEO method however, it will not continue to raise your scores. AZEO method is ideal if you're seeking credit/mortgage in the next few months.

[Anonymous]

Right I want to leave my Disco and not use it at all.

Right now, my Opensky and Discover are so new, they haven't reported to any of the big 3 (TU, EP, EQ). I am paying down my OpenSky next week, before it reports.

I was wondering if my Disco will report if I don't use it. Or do I need to use it, pay it down, for it to report?

And yes I am using AZEO for refinaincing my house. With the Disco and OpenSky not yet reporting, I do expect an increase in my scores.

[Girlzilla88]

You should use your Disco card for sure so they don't close it for inactivity or lower your limit you also want to make sure the card you are using is a Bank Card for the AZEO to be affective like you are trying to do.

[FireMedic1]

You want to use the Disco card for now for 5% cash back on groceries compared to 2% on PP. Doesnt matter which card reports less than 8% come statement date. Long as the others report $0. It comes down to your profit or cash back that will reward you for using the card. If its a catagory that pays more cash back than PP. Go for it. Plus they match your cash back in the first year. Or 10% on groceries for now. We all eat. Why pass and not use the card. Have your cards work for you. Not you working for the cards. 

Payoff that maxed at card ASAP. Its killing you.

[Anonymous]

Yeah I had the OpenSky card paid down last week and just now maxed it out this week. I am going to pay it off in full next week Tuesday. There is no due date on my OpenSky account so it is still a new billing period. I will give them a call today to ask when the due date/report date is and get it paid before that if necessary.

Thanks FIreMedic1 for the advice. I'll start using the Discover card once I have the funds to immediately pay off what I put on it.

[Anonymous]

Well called OpenSky and they said they will report on 20th of March and 20th of April. They could not answer why there is no statement due date on my account.

Shoot, so I went ahead and paid down the outstanding balance today, and I'll be paying new transcations as they appear on my OpenSky account. I'll be shelving my OpenSky card because of the low limit and because it is slow to post transcations/payments.

[Anonymous]

Wanted to post here- Thanks @FireMedic 1 for the advice to pay off OpenSky ASAP.

When the OpenSky rep said they would be reporting to the credit bureaus on the 20th of March, she was right.

I quickly paid off my OpenSky on the day before, on the 19th so that OpenSky would report a $0 balance.

Ends up, OpenSky (Capital Bank) reported to Equifax today with a balance of $0. Whew, missed a close one there. Had I waited until next week to make my payment, I would have likely taken a 50 pt hit for having a high util on my OpenSky.

So thanks!

[FireMedic1]

Your welcome. Just a little advise. If you cant pay it. Dont charge it. Your on probation right now for when it comes time for better cards.  Use the OS for a tank of gas and then pay it when it post. Use Disco for some cash back and pay it down to <8.9% before statement cut date. Then pay before due date. You'll be fine. Remeber it isnt free money.

[coachbeau]

Just a quick repsonse to yourt DISCO card. I have one at 1K and only used it 3 times over the last year and always PIF. I requested a CLI the other day and was not approved. The letter said that I didn't show enough experience with current credit limit. I let it report a $30 balance last month and will request another CLI in April.