AZEO Question

[Charmante]

Next month, after all my accounts update on CB's... I'll be going from using 3 revolvers, at a 8%, 8%, 97% usage, to AZEO @ 8%... What kind of increase, on average, might this give? I'm about a 640 now. May I hit 660?

I need a 660+ across board to get my USDA Mortgage!

[ccquest]

Definitely possible, I can't say for full AZEO but I can say when I had only one revolver, after letting it post with a balance I got a 25 point boost from 793 to 818 on EX. That was with no new accounts in over two years and no inquiries for nearly two years.

[dragontears]

Unsolicited advice warning 

have you talked to a lender about your unusual circumstance with your finances? Without having a job of any kind you will not have an easy time with getting financed (money from the parents can't be used as "income" last I knew).

For your question I generally get 10-20 points on my mortgage scores when I do AZEO while my FICO 8 barely move. Please make sure that you are looking at your mortgage scores as they can be VERY different than FICO 8

[Anonymous]

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@Charmante wrote:

Next month, after all my accounts update on CB's... I'll be going from using 3 revolvers, at a 8%, 8%, 97% usage, to AZEO @ 8%... What kind of increase, on average, might this give? I'm about a 640 now. May I hit 660?

I need a 660+ across board to get my USDA Mortgage!

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Quite possibly... the problem is the algorithm is not publically available and everyone's profile is different.

In your scenario, all else being equal I would expect your score to increase for two reasons:   
Lower total utilization and AZEO.

What are the limits on the three cards?  

What is your total utilization now and what will it be after the updates?

Also next points may be obvious but pointing them out for people doing a drive by from google or wherever:

While the cards reporting lower balances will increase your scores, ( I have not recently researched USDA programs ) the scores that you are interested in in this case may not be the same scoring models that your credit cards provide.

[HeavenOhio]

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@Charmante wrote:

I need a 660+ across board to get my USDA Mortgage!

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Leave a balance of at least $5 but not much more. Make sure that this balance is on a major card rather than a store card.

This should ensure your best possible score. It doesn't take much of a balance for me to lose three points on my Experian 98 scores. The classic score in that family is one of the scores used for mortgages.

[Charmante]

How do I see my MORTGAGE Scores? Am I able to...? I've been using my FICO 8's. Didn't realize there's a difference...

[dragontears]

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@Charmante wrote:

How do I see my MORTGAGE Scores? Am I able to...? I've been using my FICO 8's. Didn't realize there's a difference...

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you can get all your scores by buying a one time 3B report here on myFICO or you can get a subscription and get the scores refreshed on a monthly or quarterly basis depending on which subscription you choose 

[Charmante]

@dragontears So, um, not sure how to word it. Lol I was under the impression that all Revolvers are equal (till joining this forum)... But I had already opened a few Retail Cards... Macy's, Dell, Home Depot, Cap1 WM and CFNA Firestone... I believe that's it... Are retail cards BAD for your credit? Why? Could you break it down for me please...

ALSO -- Should I close them? Which of the 5 are WORST?

[dragontears]

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@Charmante wrote:

@dragontears So, um, not sure how to word it. Lol I was under the impression that all Revolvers are equal (till joining this forum)... But I had already opened a few Retail Cards... Macy's, Dell, Home Depot, Cap1 WM and CFNA Firestone... I believe that's it... Are retail cards BAD for your credit? Why? Could you break it down for me please...

ALSO -- Should I close them? Which of the 5 are WORST?

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Retail cards are reportable bad for insurance based scores. How "bad" is not really known as there is not a way to track this model. The knowledge that they are "bad" comes from the published list of negative reason codes. 

FICO scores tend to view them the "same" as regular cards. (There is a small amount of debate on this as people frequently report a small scoring penalty for using a store card as the card when implementing AZEO).

Closing any of them will not help your scores (not even your insurance scores).

[Charmante]

That's crazy. You would think paying your Bloomies Card would be the same as paying your AMEX... A payment is a payment. Lol Thanks for the info @dragontears 

SIDE QUESTION: One of the roommates I'm building, I have NOT started on yet. Their file is 100% Blank EXCEPT as an AU on One of my cards (to get them a score started)... Should I NOT open them ANY retail cards?