@Red1Blue wrote:I hear lot about AZEO on this forum. I belive this applies to only people with clean credit report. If I have several COs and they are showing delenquent balances it does not matter if we manage the AZEO on the active accounts ? Am I correct ? Can some one give me more information on this ?
Us dirty scorecarders definitely still benefit from AZEO. We had bads, but we still get points for Util. I'm working to show this as I have been keeping a tracking spreadsheet as I cleared COs and lowered my Util to AZEO. I'm seeing point gains as I lower Util and get towards AZEO even with paid off COs.
If they are unpaid co's, they are definitely counting in your utilization as maxed out accounts. I'm not sure if you can be AZEO with a co that is still reporting a balance. I had a collection account that was reporting a balance and was able to do AZEO, but the charge off was reporting 0.
Goal Scores: 700 across all three
@BmoreBull wrote:If they are unpaid co's, they are definitely counting in your utilization as maxed out accounts. I'm not sure if you can be AZEO with a co that is still reporting a balance. I had a collection account that was reporting a balance and was able to do AZEO, but the charge off was reporting 0.
Can confirm this - definitely impacts utilization if not reporting $0 balance. But, once all CO past due balances are paid, you do get the Util bonuses even being in a dirty scorecard.
@Red1Blue wrote:
@TheKid2 wrote:
Can confirm this - definitely impacts utilization if not reporting $0 balance. But, once all CO past due balances are paid, you do get the Util bonuses even being in a dirty scorecard.What is the definition of dirty scorecard ? What does it mean and what does it consist of ?
This is a great read to explain scorecards and segmentation:
@Red1Blue wrote:
@BmoreBull wrote:If they are unpaid co's, they are definitely counting in your utilization as maxed out accounts. I'm not sure if you can be AZEO with a co that is still reporting a balance. I had a collection account that was reporting a balance and was able to do AZEO, but the charge off was reporting 0.
Hi @BmoreBull, Thank you very much for your message. I am thinking the same as you. If I have CO showing balance that is counting towards the Util it does not matter if I am bringing my active accounts balance to 0. I guess for AZEO to work once all the CO accounts should come to $0 and also get rid off the Collections from the report. There is no point in loosing my sleep until all the COs balance show $0 balance.
the CAs have nothing to do with AZEO.
I had 7 CAs, 23 Defaulted SLs reporting (135k worth - half-ish OCs and half-ish CAs), and 1 CO per CRA x 2 (1 paid - Auto Loan and 1 unpaid - payday loan). I have never had issue implementing AZEO. None of the 135k balances count towards anything because they are considered "closed", so I still needed an installment loan for max credit mix.
What will hurt AZEO as far as baddies goes is unpaid CC COs/closed accounts.
You should see something like this on your CRs from Annual Credit Report:
