cancel
Showing results for 
Search instead for 
Did you mean: 

AZEO and payoff effects - Dropped scores

AKGolfer62
New Contributor

AZEO and payoff effects - Dropped scores

Hello FICO Family!

 

Quick question, have any of you executed AZEO but by accident (Due to changing bill cycles) experiences an 8-15 point drop if all CC accounts reported a zero balance?  I literally went from reported $1-3 dollar on one card and when it went from $1 > $0, I lost roughly 10-15 points across the board.  I will be charging something small before statement close on one card (17th) and see if the score jump back up.  It was merely an experiment.  Would love to hear your thoughts and 

experiences around this topic.




Starting FICO 8 Scores 1-21-2020 (Rebuilding | No BK)

Current Scores 2-26-2021

Age of Accounts

FICO 8 GOAL BY 12/2021



Message 1 of 6
5 REPLIES 5
HeavenOhio
Community Leader
Senior Contributor

Re: AZEO and payoff effects - Dropped scores

Based on memory, my score drops were between about 6 and 48 points when all of my balances were zero. One score went up (the weird and rarely used Experian 04 bankcard score).

Message 2 of 6
AKGolfer62
New Contributor

Re: AZEO and payoff effects - Dropped scores

Thank you for the information.  I really appreciate the feedback!




Starting FICO 8 Scores 1-21-2020 (Rebuilding | No BK)

Current Scores 2-26-2021

Age of Accounts

FICO 8 GOAL BY 12/2021



Message 3 of 6
jcooks
Regular Contributor

Re: AZEO and payoff effects - Dropped scores

It has happened to me.  I had AZEO except for my Chase.  Mid billing cycle, I paid off the entire balance and lost 20 points.  My Chase is a very low limit due to me burning them over 10 years ago and this is my first card back in with them, so I have to cycle payments to use this card.  I found out the hard way that Chase reports once a balance reaches $0 at any given time.  It rebounded once one other cards statement closed and reported a small balance.

Message 4 of 6
HeavenOhio
Community Leader
Senior Contributor

Re: AZEO and payoff effects - Dropped scores

The important thing to note here is that once a positive balance reports, your points will come back.

 

As @jcooks learned, the lesson is to use the fact that Chase reports zero to your advantage. Maintain a positive balance on a card from another bank, and zero out your Chase card when it reports a positive balance you'd like to eliminate.

 

That said, Chase will report your current balance at any time you ask them to. If all your cards are at zero, you can bring your Chase card to your desired balance and call in. The new balance will show up on your reports in a couple of days.

 

I wouldn't overuse this service, though. Use it when there's a real benefit, such as a time when all your card balances are at zero and you're applying for important credit. I used it when I had a myFICO report that was about to expire and my balance situation was almost identical to my previous pull.

Message 5 of 6
AKGolfer62
New Contributor

Re: AZEO and payoff effects - Dropped scores

UPDATE:

 

    I reported a small $28 on one of my CC's and the rest was AZEO.  After 2 weeks, all my score went right 

back up and I regained the 10-13 points lost for reporting a zero balance.  Just wanted to reach out that

the calculation is still working but just in case anyone was wondering, there it is!




Starting FICO 8 Scores 1-21-2020 (Rebuilding | No BK)

Current Scores 2-26-2021

Age of Accounts

FICO 8 GOAL BY 12/2021



Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.