AZEO Utilization

[Paranoid]

Hello, could someone please answer on my question?

If I plan to use AZEO method, should I leave on one card up to 8.9% of OVERALL credit limit of all my cards or 8.9% of CL of this particular card?

Like an example, I have 10 credit cards with CL of $1000 on each, total CL is $10,000.

I pay off all the cards to $0, except one that can have $890.

Is it correct?

[thornback]

$890 on a 1K limit will leave you maxed on that card at 89%. You don't want that.

Shoot for less than 8.9% overall; and less than 28.9% ($289) on the one you let report a balance.

Also the general rule is to let no more than 1/3 of your cards report a balance, so you could play with allowing 2 out of your 10 cards report a low balance and see which yields the most points for you.

[Paranoid]

Thank you very much! Now I understand.

Today I read that there is some distinctions using AZEO method with CHASE cards (that it is not so easy than using other cards). Is there any difference?

[Anonymous]

Chase cards will report your statement balance, but then will also report a $0 balance if you pay off your card say a week later.  For this reason, if your Chase card is your AZEO card, if you pay it off it will report $0 leaving you at AZ instead of AZEO.  Many suggest using an AZEO card other than Chase for this reason.

[thornback]

Yea, what BBB just said.  As soon as you pay your Chase balance to zero, they will report it to the bureaus -- even if it's mid-cycle.  So be careful with that.   Many suggest using your Chase card as the reporting card - allowing it to report a small balance while all others report zero - to make AZEO easier to manage.   This Chase policy could also work to your benefit.  Say one month you miss your statement date on a card you intended to pay to zero, and it ends up reporting a balance  - so now both your Chase and the other card are reporting.  You can just pay your Chase down to zero and it will report that within a few days, bringing you back to AZEO very quickly without having to wait a full month for an update.   <--- My badd.  That is all screwed up so please ignore.

[Paranoid]

>Many suggest using your Chase card as the reporting card - allowing it to report a small balance while all others report zero - to make AZEO easier to manage. 

But what is the point in that case? Chase will report a small balance, I will pay it off before due date and Chase will report $0? And AZEO becomes All Zero?

What makes AZEO easier choosing CHASE to be reporting card comparing to other cards?

[thornback]

I'm so sorry.  You're right. I screwed up my post.   I meant to reiterate NOT using Chase as the reporting card but I confused myself.  Let Chase and others report zero while a non-Chase card reports a small balance to make managing AZEO easier.   

My apologies - Obviously, this is my cue to stop attempting to give advice now and just go to bed.. 

[Paranoid]

Thank you :-)!

Just one more question -- but during the billing cycle I can go even for 99 % of my CL on any card if I will pay the balance off to $0 (or resonable acceptable percentage) before the statement date?

For example, I have a card with $1000, during the cycle I can go for $990, but before the statement pay it off.

Is it OK or not recommended?

[thornback]

That depends on the lender, but typically, yes, you can run the card close to the limit and pay it to zero, or less than 30% of the limit, before the statement and there will be no issue.  Most lenders only get a little spooked if you max and then only pay the minimum on the due date.  The lender may even like the high usage and the fact that you pay it all off quickly - you may even get an auto CLI out of it...   

[Paranoid]

Thank you very much!