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AZEO Question

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TryingtoBeLifeGoals
Established Member

AZEO Question

I am an authorized user on my SIL's AMEX Platinum.  I have never tried AZEO but I am thinking about it. Her AMEX usually has a balance every month. If I pay off all of my cards to zero but am still an authorized user on her card that carries a balance will I be hit with the zero balance penalty? Or should I keep a small balance on my card? 

Message 1 of 12
11 REPLIES 11
simplynoir
Community Leader
Mega Contributor

Re: AZEO Question

Charge cards are unique in that most scoring models don't use them for utilization calculations but do report the balance as part of your total on your reports. So if you're practicing AZEO to maximize your scores as much as possible you need to let a revolver from one of your own cards report a small balance to get the benefit, you being an authorized user on an AMEX Platinum charge card won't help you out here. Just make sure the utilization on the cars you use to carry the balance is below 8.9%

Message 2 of 12
TryingtoBeLifeGoals
Established Member

Re: AZEO Question

Thank you! 

Message 3 of 12
simplynoir
Community Leader
Mega Contributor

Re: AZEO Question

You're welcome happy to help

Message 4 of 12
Jordan23ww
Valued Contributor

Re: AZEO Question

You should keep a small balance on 1 of your cards. I also do AZEO. When I have paid all my cards to $0 but left a small balance on my wife's card which I am an authorized user on I got the $0 balance penalty.  Also vice versa for my wife when her cards all report $0 even though she's an authorized user on all my cards.  Now we both always report a small balance on 1 of our cards with no penalty. 

      


Message 5 of 12
SouthJamaica
Mega Contributor

Re: AZEO Question


@TryingtoBeLifeGoals wrote:

I am an authorized user on my SIL's AMEX Platinum.  I have never tried AZEO but I am thinking about it. Her AMEX usually has a balance every month. If I pay off all of my cards to zero but am still an authorized user on her card that carries a balance will I be hit with the zero balance penalty? Or should I keep a small balance on my card? 


It's my understanding that while the Amex charge cards aren't included in the dollar percentage utilization computation, they are included as an "account with balance" if they have a balance, and therefore would avoid the All Zero Penalty.

 

I have no personal experience with it, though, so I hope some people can chime in who have had personal experience with this issue.

 

Update: OK I've researched it a little, and according to @Thomas_Thumb, who is exceptionally knowledgeable about these things, the Amex charge card balance will not suffice to avoid the All Zero Penalty. 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/The-AZEO-Method/m-p/5356471#M144030

 

So I stand corrected.

 

 


Total revolving limits 651200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 6 of 12
CH-7-Mission-Accomplished
Valued Contributor

Re: AZEO Question


@SouthJamaica wrote:

@TryingtoBeLifeGoals wrote:

I am an authorized user on my SIL's AMEX Platinum.  I have never tried AZEO but I am thinking about it. Her AMEX usually has a balance every month. If I pay off all of my cards to zero but am still an authorized user on her card that carries a balance will I be hit with the zero balance penalty? Or should I keep a small balance on my card? 


It's my understanding that while the Amex charge cards aren't included in the dollar percentage utilization computation, they are included as an "account with balance" if they have a balance, and therefore would avoid the All Zero Penalty.

 

I have no personal experience with it, though, so I hope some people can chime in who have had personal experience with this issue.

 

Update: OK I've researched it a little, and according to @Thomas_Thumb, who is exceptionally knowledgeable about these things, the Amex charge card balance will not suffice to avoid the All Zero Penalty. 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/The-AZEO-Method/m-p/5356471#M144030

 

So I stand corrected.

 

 


It wouldn't matter if the AU card reporting was a Visa/MC -- you must report a small balance on a card that works on one of your own primary accounts.   If you have all zero except one AU account, you will lose the 20 points.   I experienced this at one point and could not figure out the reason for my point loss.  Birdman explained it to me and sure enough when one of my cards reported a small balance I got the points back.  So in this case the issue isn't that the AU is an AMEX, it's that it's an AU.

Message 7 of 12
OmarGB9
Community Leader
Super Contributor

Re: AZEO Question


@CH-7-Mission-Accomplished wrote:

@SouthJamaica wrote:

@TryingtoBeLifeGoals wrote:

I am an authorized user on my SIL's AMEX Platinum.  I have never tried AZEO but I am thinking about it. Her AMEX usually has a balance every month. If I pay off all of my cards to zero but am still an authorized user on her card that carries a balance will I be hit with the zero balance penalty? Or should I keep a small balance on my card? 


It's my understanding that while the Amex charge cards aren't included in the dollar percentage utilization computation, they are included as an "account with balance" if they have a balance, and therefore would avoid the All Zero Penalty.

 

I have no personal experience with it, though, so I hope some people can chime in who have had personal experience with this issue.

 

Update: OK I've researched it a little, and according to @Thomas_Thumb, who is exceptionally knowledgeable about these things, the Amex charge card balance will not suffice to avoid the All Zero Penalty. 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/The-AZEO-Method/m-p/5356471#M144030

 

So I stand corrected.

 

 


It wouldn't matter if the AU card reporting was a Visa/MC -- you must report a small balance on a card that works on one of your own primary accounts.   If you have all zero except one AU account, you will lose the 20 points.   I experienced this at one point and could not figure out the reason for my point loss.  Birdman explained it to me and sure enough when one of my cards reported a small balance I got the points back.  So in this case the issue isn't that the AU is an AMEX, it's that it's an AU.


Well there's 2 separate issues here. One is the fact that it's an AU, as you mentioned, and you're absolutely correct; however, the other issue is that the AU in question is a charge card, so whether there's a balance posted or not, it isn't enough to avoid the AU all zero penalty as @SouthJamaica noted above. Basically, OP has to make sure one of their own cards posts a small balance while all others are at zero, and acquire an AU revolver and have it report a small balance. Or remove themselves from being an AU on the Plat altogether. 


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 8 of 12
MasonK
Frequent Contributor

Re: AZEO Question


@SouthJamaica wrote:

Update: OK I've researched it a little, and according to @Thomas_Thumb, who is exceptionally knowledgeable about these things, the Amex charge card balance will not suffice to avoid the All Zero Penalty. 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/The-AZEO-Method/m-p/5356471#M144030


 I have recent DPs to confirm this is still the case. Had to test for myself after stepping into the Amex arena.

1/1/16 FICO8 Scores: EX: 407, EQ: 403, TU: 455
4/1/24 FICO8 Scores: EX: 832, EQ: 820, TU: 834
FICO9 EX: 818
Total Revolving Limits: $152,300

Message 9 of 12
TryingtoBeLifeGoals
Established Member

Re: AZEO Question

Thank you! 

Message 10 of 12
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