AZEO + PIF: New App Lender Able to See if I'm Using Credit

[Marmot]

I've AZEO'ed and PIF'ed for a few years with the below DPs.

FICO 8 EX/EQ/TU: All hovering in the 810-815 range

TLC:  $140,000 (10 CCs with 4 $20,000 and remainder $10,000+ and lowest $7,000)

Income: $150,000

Actual Monthly Charge on CCs: $2,000 - $3,000

Question:

(1) Since I AZEO ($10) and PIF every month, can a new app lender see that I'm utilizing my credit lines when they HP CRs? I've heard that new lenders may not give high (relative depending on the applicant) CL such as $20,000 since I already have TLC of $140,000.

(2) Should I stop AZEO and PIF so that my UTIL will show 1% to 2%?

Thank you for your thoughts !

[dragontears]

---

@Marmot wrote:

I've AZEO'ed and PIF'ed for a few years with the below DPs.

FICO 8 EX/EQ/TU: All hovering in the 810-815 range

TLC:  $140,000 (10 CCs with 4 $20,000 and remainder $10,000+ and lowest $7,000)

Income: $150,000

Actual Monthly Charge on CCs: $2,000 - $3,000

Question:

(1) Since I AZEO ($10) and PIF every month, can a new app lender see that I'm utilizing my credit lines when they HP CRs? I've heard that new lenders may not give high (relative depending on the applicant) CL such as $20,000 since I already have TLC of $140,000.

(2) Should I stop AZEO and PIF so that my UTIL will show 1% to 2%?

Thank you for your thoughts !

---

1) not really, a new lender will only see what is on your reports at the moment of the pull. Some lenders do report payments (even for $0 statement balances) but not all do.

2) completely up to you. There are many theories on this but no one knows for sure. I quit bothering with AZEO when my scores started hovering around 800 because 1) it was a hassle (for me) to micromanage each card, 2) the ~10 points between AZEO and just letting my cards report naturally isn't going to affect my approval chances and 3) I am in the camp of "lenders are going to give you higher limits if they think you will actually use it" so showing usage on cards is a good thing in this theory (please note this as well as the opposite view are just theories not facts)

[kilroy8]

I think most would agree that a score of 760 will qualify for the very best rates. So AZEO at that point is just gilding the lilly.

Where people get denials with those scores it is because of credit seeking behavior, very thin/young files, too little income, time at same address or in job, etc. So things not related to score that AZEO won't help.

[Marmot]

Thanks for your thoughtful answers. It seems AZEO work for most people, especially for people in the FICO score range that benefits them. As you say, nobody knows for sure what the AZEO recipe is. My UTIL will be 1%-2% if I don't PIF. Again, we're not certain if that 1%-2% will make any difference. I'm tilting towards the camp that it's better to show new lenders that you're utilizing your credit lines.

Thank you!

[Marmot]

@kilroy8  Thanks for your input. As you rightly mention, FICO scores above 760-770 will probably give you the best APR rates. My AoYA is 31 years, AAoA 4 years (decreased with car loans, mortgage, a few cards in the past couple of years), thick file, 150K income, etc. check most of the boxes to get a new CC app approval.

I decided not worry too much about UTIL, AZEO, and PIF. I have three more specific new cards to complete the CC portfolio, which I set as my goal goal when I started the credit journey after I became a community member of this great myFICO forum and contributors.

I am lucky to be a member. Thank you!

[dragontears]

---

@Marmot wrote:

@kilroy8  Thanks for your input. As you rightly mention, FICO scores above 760-770 will probably give you the best APR rates. My AoYA is 31 years, AAoA 4 years (decreased with car loans, mortgage, a few cards in the past couple of years), thick file, 150K income, etc. check most of the boxes to get a new CC app approval.

I decided not worry too much about UTIL, AZEO, and PIF. I have three more specific new cards to complete the CC portfolio, which I set as my goal goal when I started the credit journey after I became a community member of this great myFICO forum and contributors.

I am lucky to be a member. Thank you!

---

Just a terminology correction for you 

AoYA = age of youngest account 

I think you meant 

AoOA = age of oldest account 

As it is mathematically impossible to have your average at 4 years and your youngest at 31 years lol

[Marmot]

@dragontears   Yes I meant AoOA:  31 years.  My bad.

[dragontears]

@Marmot it is so easy to do, I still say the long versions in my head when writing the abbreviations because a little typo completely changes the meaning. 

[SouthJamaica]

---

@Marmot wrote:

I've AZEO'ed and PIF'ed for a few years with the below DPs.

FICO 8 EX/EQ/TU: All hovering in the 810-815 range

TLC:  $140,000 (10 CCs with 4 $20,000 and remainder $10,000+ and lowest $7,000)

Income: $150,000

Actual Monthly Charge on CCs: $2,000 - $3,000

Question:

(1) Since I AZEO ($10) and PIF every month, can a new app lender see that I'm utilizing my credit lines when they HP CRs? I've heard that new lenders may not give high (relative depending on the applicant) CL such as $20,000 since I already have TLC of $140,000.

(2) Should I stop AZEO and PIF so that my UTIL will show 1% to 2%?

Thank you for your thoughts !

---

No, they can see internally from your reports what you've been doing during the month.

[Marmot]

@SouthJamaica   Thank you! Good to know that lenders can see, especially when they HP for CC app, that I've been spending X $ amount every month and utilizing the credit lines.

Very helpful information!