AZEO Method and Authorized Users

[coolandcalm]

When using the AZEO method.. the one card should be a traditional credit card and not a charge/store card?

Will small balances (under 9%) from a primary, on accounts that you are an Authorized User on have any effect on this method?

[GatorGuy]

Your cards and AU cards are separate. 

There is usually a second AZ penalty for AU accounts. So you would want to have a small balance one AU card as well. 

[OmarGB9]

Yes it should be a normal bankcard (excluding Chase and US Bank), not a store card and especially not a charge card.

And as mentioned above, AU and personal cards are separate.

[coolandcalm]

I saw some other older posts about.. having no more than 1/3 of all cards (authorized users included) reporting a balance for the AZEO method.. which technically becomes the AZE2 method?

So If an AU card should have its own one card balance, to avoid a penalty.. 

And I have...

AMEX: 5% util

AU Amex: 5% util

BB Store: O% util

Lowes Store: 0% util

I need to have at least 2 more Credit card accounts?

[OmarGB9]

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@coolandcalm wrote:

I saw some other older posts about.. having no more than 1/3 of all cards (authorized users included) reporting a balance for the AZEO method.. which technically becomes the AZE2 method?

So If an AU card should have its own one card balance, to avoid a penalty.. 

And I have...

AMEX: 5% util

AU Amex: 5% util

BB Store: O% util

Lowes Store: 0% util

I need to have at least 2 more Credit card accounts?

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2 more AU accounts technically. 

[disdreamin]

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@OmarGB9 wrote:

Yes it should be a normal bankcard (excluding Chase and US Bank), not a store card and especially not a charge card.

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Curious why not Chase or US Bank. I've got young AU's in the house and am curious about how to optimize their scores when the time comes.

[coldfusion]

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@disdreamin wrote:

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@OmarGB9 wrote:

Yes it should be a normal bankcard (excluding Chase and US Bank), not a store card and especially not a charge card.

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Curious why not Chase or US Bank. I've got young AU's in the house and am curious about how to optimize their scores when the time comes.

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They each report in an atypical fashion which makes them unreliable to be the only card that reports a balance. (keep in mind that the goal is to always have just 1 card report a balance, and the card should report a balance and not carry a balance)

When a Chase card is paid down to a $0 balance Chase automatically and immediately reports that $0 balance out-of-cycle.

USBank does not report the balance as of closing date, they instead report the card balance as of the last business day of each calendar month.

[disdreamin]

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@coldfusion wrote:

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@disdreamin wrote:

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@OmarGB9 wrote:

Yes it should be a normal bankcard (excluding Chase and US Bank), not a store card and especially not a charge card.

---

Curious why not Chase or US Bank. I've got young AU's in the house and am curious about how to optimize their scores when the time comes.

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They each report in an atypical fashion which makes them unreliable to be the only card that reports a balance. (keep in mind that the goal is to always have just 1 card report a balance, and the card should report a balance and not carry a balance)

When a Chase card is paid down to a $0 balance Chase automatically and immediately reports that $0 balance out-of-cycle.

USBank does not report the balance as of closing date, they instead report the card balance as of the last business day of each calendar month.

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Ah, I knew about Chase reporting any time you zero the account, but I had no idea that US Bank reported the way you described. Thank you.