AZEO Case

[SouthJamaica]

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@FlaDude wrote:

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@SouthJamaica wrote:

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Your balance reporting card can be any of the above except for the Chase card; don't use that as your balance reporting card.

Let the balance report at $10-20 before paying it off.

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@SouthJamaica Just curious but what is the rationale for not using the Chase card? On the rare occasions when I've tried AZEO, I specifically used my Chase card because if another card did accidently report a balance (AF, for example) I could pay the Chase to zero and they would automatically report mid cycle to keep AZEO.

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Well as long as you stay on top of it, like that, it's fine.

I was just trying to simplify for the OP, who might not be as experienced as you.

[Thomas_Thumb]

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@mnperson wrote:

I am going to apply for a mortgage and wanted to see what is the best wait for AZEO to work.

Can you please tell me what card should I report atleast some balance (2 or 5 or 10) before I make sure there is ZERO balance on remainin g cards ?

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@mnperson 

Do you have access to your Fico mortgage scores? If so, what were your latest scores and do you know how many cards had balances at that time? BTW - Do you have any open or closed loans on file? Any derogatories?

It really doesn't matter which 1 or 2 cards report small balances or whether they reported use the prior month. Just avoid the "all zero" penalty. Two reporting balances is much better than zero.

[mnperson]

My FICO Mortgages are as below. I am trying to hit the 680 midscore. I had some late payments on my credit cards and I did Goodwill with capitalone and they removed the baddies. However, my credit union is not willing to remove any late payments on my auto loan. My mortgage lender said with 680 middle score, they will do it. 

FICO 5 EQ 639

FICO 4 TU 661

FICO 2 EX 645

I don't have any derogatories except for late payments. I have a auto loan and personal loan.

[Thomas_Thumb]

Not sure how many cards reported balances for the above score. If 4 reported balances as shown in your 1st post, dropping to 1 might gain you 10-15 points.

What are the balance to loan ratios on your car and personal loan?

[mnperson]

Yes, 4 cards reported the balance. I will drop it to 2 and see it impacts positively. Also,

Personal Loan -26% paid

Auto loan-55% paid.

[Thestickybandit]

So with the AZEO Method its temporary ? 

[JoeRockhead]

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@Thestickybandit wrote:

So with the AZEO Method its temporary ? 

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It's temporary in the same way utilization based score changes are. Utilization has no memory, so generally when utilization goes up, scores go down. Utilization goes down, scores go up. Within utilization score factors there are thresholds, such as going above or below 9%, 29%, 49 % UTI and so on.  

There are similar score reactions depending on how many of your accounts report balances. For example, some people can get the same score benefits from practicing AZE3 with 7 cards, as someone practicing AZEO with 3 cards. It depends on how many revolving accounts they have. It's usually better for your scores if you let less than half your revolving accounts report balances. As long as you maintain the practice, just as with maintaining low UTI, the score benefits remain, you don't and they go away. 

[FicoMike0]

It is temporary, but that works both ways. If you mess up one month, you can fix it the next.