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AZEO CONFUSION

CreditNovice01
Established Member

AZEO CONFUSION

Hello all,

 

How can I implement AZEO on 2 new cards considering the balance details below.

 

I currently only have 2 credit cards that I was approved for and received this week. Quicksilver non secured,  and Discover it recently.

 

Statement dates October, due dates November.

 

I paid $37 of $39 membership fee on QS card leaving a $2 balance to report statement close date. (Will the .67 utilization count as 0%?)

 

The discover card has $9 balance of $200 secured card limit scheduled to report next week.

 

Quicksilver statement date has come and gone reporting $2 bal.

 

Should I pay the Discover card $9 balance back down to $0?

 

Or should I leave both card balances as is for statement reporting, and then pay before due date.


Any suggestions would be greatly appreciated.

 

 

 

Message 1 of 28
27 REPLIES 27
FireMedic1
Super Contributor

Re: AZEO CONFUSION

AZEO works the best with 3 cards. Your doing it right having one report $0 balance and a small balance on the other. Comes down to FICO likes less than 50% of your total cards reporting a balance. So at 50% your on the edge. Once a 3rd card is obtained. Thats when you'll see the FICO bonus with 33%. Any loans?





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 28
CreditNovice01
Established Member

Re: AZEO CONFUSION

Thank you for your reply. I appreciate your feedback please elaborate, I don't understand the 50% towards edge. The non secured card is $300limit with $2 balance. The secured card is $200 limit w $9 balance. 

The nerd wallet utilization calculator alleges 0.67% for $2 bal,  and 4.54% for $200 bal with an overall utilization of 2.22%. 

I currently have auto loan $19k paid, $11k remaining, debt to credit ratio 57%

Im ready to learn please advise.

Message 3 of 28
FireMedic1
Super Contributor

Re: AZEO CONFUSION

Thats great you have some type of installment loan. To get the credit mix bonus takes 3 open cards. 2 cards is 50%. To get the FICO rebuild bonus as I call it. The third card will drop you from 50% reporting down to 33%. Then you'll see a score bump. With 2 cards and AZEO there isnt that much of a change. Once that 3rd card is approved and you follow true AZEO. Here comes some points.





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 4 of 28
satio
Frequent Contributor

Re: AZEO CONFUSION

Firemedic has spelled out AZEO in terms of FICO and the boost in points for following the method very well.

 

There is always alot of conversation about AZEO but I would like to add that unless you are about to seek new credit in some capacity (car, mortgage, CC account, etc) and want to insure you have done all that you can to maximize your scores, it is not something that you need to stress about month to month.

 

Yes, I believe its always best to pay in full every month and as a general rule I myself pay all accounts accept one to zero prior to statement date but if you slip and do not get all to zero except one before a statement cuts there is no need to stress about it.

 

The beauty of utilization whether on a single account as an aggregate for all accounts is it has no memory. Once you bring accounts to zero (accept one) any points that you may have lost for not being at AZEO will come back.

 

 



Message 5 of 28
CreditNovice01
Established Member

Re: AZEO CONFUSION

FireMedic1Thank you!! That makes sense. After reading the abbreviations forum I believe Im in the gardening phase. I only have the 2 most recent inquiries for the last few years so I don't want to apply for anything else. Certainly welcome any future suggestions/ protips.

 

Respectfully,

Message 6 of 28
CreditNovice01
Established Member

Re: AZEO CONFUSION

Satio Thank You!!

 

Thank you both I read your suggestions in the voice of Captain America. (I feel like I've teamed up with Marvel). You guys are hero's for sharing the valuable input.


While doing my part I appreciate this community.

 

 

Message 7 of 28
FireMedic1
Super Contributor

Re: AZEO CONFUSION


@CreditNovice01 wrote:

FireMedic1Thank you!! That makes sense. After reading the abbreviations forum I believe Im in the gardening phase. I only have the 2 most recent inquiries for the last few years so I don't want to apply for anything else. Certainly welcome any future suggestions/ protips.

 

Respectfully,


After 1 year FICO doesnt count inq's any longer. If its been more than a year since your last inq. Then you have none. You wanted help to get credit going. Get the 3rd card and follow the directions above and then garden. And inq's are the least of a score hit than anything else. But its up to you. Good Luck!





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 8 of 28
CreditNovice01
Established Member

Re: AZEO CONFUSION

Wowzers. I was delaying applying for that reason..inquiries. 

Good to know, would you suggest secured or non secured? Hoping to get preapproved, but so far I have one of each.

 

 

Message 9 of 28
FireMedic1
Super Contributor

Re: AZEO CONFUSION

 Link to pre-qual for Discover. Its all laid out there for you above for AZEO.

https://www.discovercard.com/application/preapproval/initial 





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 10 of 28
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