AZEO fail

[Revelate]

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@Anonymous wrote:

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@Meanmchine wrote:

My mortgage is in year 13 of a 30 year mortgage so unless I make a balloon payment my ding for high loan balance wont disappear for years. 

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If your mortgage is already paid down below ~75% or so utilization (which it should be based on nearing half its term) it's quite likely that your already seeing all or at least most of the FICO score benefit from it.  My only open installment loan is a 30 year mortgage paid down about 10 years and I've been able to max out some FICO scores (all Classic 8's, anyway).

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Not sold on that data wise; an 850 is the absolute worst place FICO wise to be testing for magnitude of movements in FICO.  We absolutely know there's a buffer without any way to quantify it.

I dropped below 80% aggregate and don't think I got squat as I've been flatlined on FICO 8, and my mortgage is closing in on 80%.  Maybe I'll get some useful data soon from Experian.  Will be paying off the personal loan, well, today now that I see it's a valid test instead of next month... will see if I get any movement and then should be dropping below 80% on the mortgage in the next two months.

	Current	Original	Utilization
Mortgage	209065	258750	80.8
Auto	54340	55700	97.56
Personal	443	20000	2.22
TOTAL	263848	334450	78.9

[Anonymous]

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@Revelate wrote:

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Not sold on that data wise; an 850 is the absolute worst place FICO wise to be testing for magnitude of movements in FICO.  We absolutely know there's a buffer without any way to quantify it.

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In the score range of 822-850 for me (which spanned about a year) my mortgage utilization dropped about 2%, so I wouldn't say that any real "testing" took place at 850.  I'm quite sure that it was my age of accounts factors that put me there, watching my AAoA cross 7.5 years, then a big bump up for AoYA crossing 12 months, then all it took was inquiries all hitting 365 days to max out scores.  I don't believe that the 2% drop on my aggregate/only installment loan made a difference, personally.

My point here that I don't want to veer away from is that mortgage utilization for the person above IMO has very little bearing on his FICO scores at this point, as with it being paid down 13 years it's likely already "significantly" paid down.  Sure there could be a few more points on the table, but it's not at all like the points able to be realized in crossing the 8.9% threshold on a lone non-mortgage installment loan.

[SouthJamaica]

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@Meanmchine wrote:

Without even planning, I finally hit AZEO status, or so I thought. Today, a small balance on one of my cards hit $0. This left only 1 account carrying a balance

Account Bal $742  CL $10500 or 0.071%

Total       Bal $742  TCL $155,000 or 0.005% rounded

NOT A SINGLE POINT on EX ir TU movement.  EQ hasnt reported yet

I am really getting pizzed at being the FICO scoring exception

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AZEO is not really significant for FICO 8. But it can make a big difference on some older models, including the mortgage scores.

The reason for AZEO is not to improve one's FICO 8's. The reason to use it is to make sure that no matter what FICO scoring model is invoked, you will not be penalized for (a) too many accounts with balances, or (b) no accounts with balances.

[HeavenOhio]

@Meanmchine, you don't mention your prior balances. You may have already achieved your AZEO scores with those balances.

As mentioned directly above, we suggest AZEO when people want to avoid drama. For most, a tiny balance on one card is no different than 8.9% overall utilization with no more than 28.9% on a single card. But when an important application is forthcoming, it's a bad time to test the system. Thus, AZEO is the safety valve.

In my case, I can achieve my AZEO scores with a 4-digit balance on one card. I can achieve my AZEO TU FICO 8 with two cards reporting balances, and I can achieve my AZEO EX FICO 8 with three cards reporting. While I'm rarely at AZEO, I'm still frequently achieving the scores.

Also, as mentioned, your FICO 8s are great. Based on a recent thread where participants compared all their FICO scores, figure that the worst case scenario is that your Equifax mortgage score is sixty points lower than the corresponding FICO 8. That's still 762.

But you have a reasonably lengthy history, and the mortgage scores value that more than FICO 8. My mortgage and FICO 8 scores run neck and neck, with my EX mortgage score topping out at about 18 points higher than its corresponding FICO 8. If I were to hazard a guess, I'd bet that your mortgage scores are running a bit behind your FICO 8s, but not by the 30 to 60 points we sometimes see.

[Meanmchine]

OK, slight correction, Mortgage entering 12th year and bal is at 80%

I will report back at 79% for data points

Mortgage scores EX 790   TU 783   EQ 805 ( up from last time I checked )

April is my next hope for a score bump as 1 account ages to 2 years

( putting me at 3/24 ) and a two year old inq ages off.  Even if there is no movement, Im going to be curious as to any Chase's offers they might give me

Im thinking of holding off apping til June when I hit 1 year AoYA.  Wanna see if EX skunks me again

[Anonymous]

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@Meanmchine wrote:

Im thinking of holding off apping til June when I hit 1 year AoYA.  Wanna see if EX skunks me again

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I suppose there's a benefit and a drawback to that.  The benefit is that you get to realize the (say) 20 point score gain associated with the 12 month AoYA threshold crossing.  It's bittersweet, though, as that score gain is short-lived if you immediately app.  If you app before that you won't experience the score yo-yo.  The end result is the same, it's just whether or not you want to see your higher score (potential) first

[Meanmchine]

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@Anonymous wrote:

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@Meanmchine wrote:

Im thinking of holding off apping til June when I hit 1 year AoYA.  Wanna see if EX skunks me again

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I suppose there's a benefit and a drawback to that.  The benefit is that you get to realize the (say) 20 point score gain associated with the 12 month AoYA threshold crossing.  It's bittersweet, though, as that score gain is short-lived if you immediately app.  If you app before that you won't experience the score yo-yo.  The end result is the same, it's just whether or not you want to see your higher score (potential) first

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True, very True TBH Im not even expecting 20 point movement due to my level.  Probably like 10 or so. Besides, the way I waffle and blow with the wind, its gonna take me a couple of months anyways just to decide on the cards I want to go after

Thanks everyone for your input

[Anonymous]

I'd also spend some time over the next few weeks thinking about whether you might want to use your 800+ score to make yourself money, rather than pursue getting an 850.

There's no right answer: you might really enjoy the pleasure of being able to say that you have an 850.  And that pleasure might be so intense that the loss of signup bonuses from new credit cards is a price well worth paying.

But at least consider the option of bonus chasing: since you have a limited income those signup bonuses can be really sweet.

[Meanmchine]

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@Anonymous wrote:

I'd also spend some time over the next few weeks thinking about whether you might want to use your 800+ score to make yourself money, rather than pursue getting an 850.

There's no right answer: you might really enjoy the pleasure of being able to say that you have an 850.  And that pleasure might be so intense that the loss of signup bonuses from new credit cards is a price well worth paying.

But at least consider the option of bonus chasing: since you have a limited income those signup bonuses can be really sweet.

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The Wells Fargo CashWise card interests me with the $200 cash back. Im nervous about Chase but if I did there is the $150 cb CFU card and the $250 statement credit Disney. BoA cash rewards maybe next year.  Ive been thinking about these cards for awhile.  Trouble is I also like a few  useless cards out there like the M-Life FNBO card or the NASA FCU Star Trek card. LOL I also like the NASCAR Credit One card design tho Id never app for it. To quote a line I once heard "Im be-twicksed and be-tween"

The trouble with my luck is that whenever I am really looking for a new card to app for, there is no FOTM available. 

Also, ty CGID for explaining the diferene between chrunning and sub chasing. I didnt know the difference til your post. Just shows you can always teach an old Machine new tricks