AZEO question

[Greenmach]

Hey guys!

     I'm trying to raise my SO mortgage scores and I got to thinking about how AZEO works for her. She has 1 CC and 1 AU (mine). I usually keep $5 or so on her AU and she keeps hers at $0 before statement cuts. Is she getting the most out of AZEO with only having 1 revolver in her name?  She has a lot more issues than just that but, that's for a later post. 🤣

[chiefone4u]

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@Greenmach wrote:

Hey guys!

     I'm trying to raise my SO mortgage scores and I got to thinking about how AZEO works for her. She has 1 CC and 1 AU (mine). I usually keep $5 or so on her AU and she keeps hers at $0 before statement cuts. Is she getting the most out of AZEO with only having 1 revolver in her name?  She has a lot more issues than just that but, that's for a later post. 🤣

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AZEO requires 3 credit cards for full benefit, works with more cards but not with fewer. 

Part of what makes AZEO raise mortgages scores is no more than 1/3rd of cards reporting a balance. 

As she is currently set up she could have three possible outcomes: 

100% of cards reporting a balance. 

50% of card's reporting a balance 

0% of cards reporting a balance (which sometimes occurs even when the AU account has a balance).

All three of the above carry a penalty in scoring. 

[Anonymous]

Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card?  Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?

[thornback]

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@Anonymous wrote:

Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card?  Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?

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I seem to recall reading a data point that a person with 1 primary and 1 AU had the best mortgage score outcome when both the primary and AU reported low balances.  

With only the primary reporting, there was a penalty (presumably the AZ-AU penalty). With only the AU reporting, there was the AZ penalty.  Both reporting a balance was the best scoring scenario. 

Of course, I cannot find that post of the dp (and it is only one dp) but I believe I'm remembering correctly.

[AllZero]

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@Anonymous wrote:

Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card?  Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?

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calyx did a test. For EX2, it is best to do true AZEO. AU card reports zero. Unknown for TU4 or EQ5. I can only presume it may be the same if it follows the older scoring algorithm.

For your reading pleasure. Update: FICO2 experiment (is it worth it?)

[thornback]

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@AllZero wrote:

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@Anonymous wrote:

Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card?  Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?

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calyx did a test. For EX2, it is best to do true AZEO. AU card reports zero. Unknown for TU4 or EQ5. I can only presume it may be the same if it follows the older scoring algorithm.

For your reading pleasure. Update: FICO2 experiment (is it worth it?)

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Guess the best way to find how all 3 bureaus respond is for OP to test all scenarios-  assuming they have time to do so. 

[AllZero]

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@thornback wrote:

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@AllZero wrote:

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@Anonymous wrote:

Someone correct me if I'm wrong, but when it comes to mortgage scores isn't it better to have a balance reported on both an AU card (if you have one) and a major bank card?  Maybe that advice is different when you're talking 100% of cards with a balance relative to a lower number, say 15%-20% on a file with many CCs?

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calyx did a test. For EX2, it is best to do true AZEO. AU card reports zero. Unknown for TU4 or EQ5. I can only presume it may be the same if it follows the older scoring algorithm.

For your reading pleasure. Update: FICO2 experiment (is it worth it?)

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Guess the best way to find how all 3 bureaus respond is for OP to test all scenarios-  assuming they have time to do so. 

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I totally agree. Test it out and see what is the optimal outcome.

I gather data points and test it myself to see how it affects my profile. Plug for BBB, I did the From AZ --> AZEO --> 100% w/balances data just to see how it would work.

[Anonymous]

If I had an AU account (I never have) I would love to replicate that test I did in 2018 today.  I don't plan on ever having one, though.

[AllZero]

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@Anonymous wrote:

If I had an AU account (I never have) I would love to replicate that test I did in 2018 today.  I don't plan on ever having one, though.

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I don't have AU accounts either and unable to test it myself. I don't plan on AU accounts too. Trying to figure out the small nuances with FICO is hard enough with primary accounts.

Unfortunately, I can't offer any first hand experience to OP other than what I read.

[Greenmach]

@AllZero 

@Anonymous 

@thornback 

That's something to try this month. I'll have both cards report a small balance and see how her scores react. Both statements cut @ the EOM so I will update afterwards. Thanks guys!