AZEO queston

[Anonymous]

So I am due to request a 61 day CLI w/ AMEX next week and wanted to try and maximize my score using the AZEO tactic (didn't know about it until recently.)  I had planned to have QS at "$0" and ED report a balance of $200 or so (would make util roughly 5%) before statement cuts for AMEX on 3/9.  Unfortunately, QS was linked (from forever ago) to craigslist job posting site so when my wife posted for a job at her business this past week, she was charged $7 and now QS is showing statement balnace of $7 b/c statement cuts on the second.  My question is, should I just only let that "$7" report and pay the ED to "0$" or is the 7$ too insignificant to even show up as 1% util.  Overall available credit across accounts is about just shy of 5,000. Thank you. 

[HeavenOhio]

We don't know how many cards you have, but it's possible that you could be dinged for a second card reporting a positive balance. The ding — if it even happens — would be small. If it makes you feel better, you can cut a $0 balance on the AMEX card. Their thing is getting paid. They don't care when as long it's in full and on time.

[Anonymous]

$7 on the CapOne will be just fine.

[Anonymous]

I have 3 revolvers + 1 charge card. I'll just plan to have others to "0$" and see what happens with the QS reporting 7$.  Thanks! 

[NRB525]

Spoiler alert: It will make Zero difference in your 3X CLI request.

AMEX uses whatever last SP they did, which is likely 60 days or so in the past. That is the main reason the shorthand 61 days is regurgitated as advice, because it gives AMEX a chance to take another SP after your application HP. They also do not use the HP, so if no SP was done recently, they might use a SP from before your app.

The other factor in your file is you have two AMEX, the charger and the revolver, correct? This means half of all your cards are AMEX and contribute to their internal scoring method. That should carry a lot of weight.

An AZEO method would only possibly have an influence on an AMEX 3X CLI request if it is your first ever AMEX, and you had already been diligent about maintaining AZEO every day for three months since you cannot predict the SP timing.

Or, you could just use the AMEX regularly and pay on time. That has a stronger influence on an AMEX CLI than any two point gain ( and low swipe value indication ) that comes from AZEO.

In case it is not clear, I think AZEO is a waste of time.

And I also oredict you won’t have any issues getting your first 3X CLI, since that is probably from $1k to $3k.

[Anonymous]

Nice response by NRB. 

For any person who wants to implement AZEO, the card that shows the positive balance should be a plain Jane credit card.  That is, it should be:

(1) A true credit card (not a charge card)

(2) A card in your name (not an AU card)

(3) A card with a balance of at least $5

(4) A card with a credit limit of < 29k

The more you deviate from that, the greater the risk that FICO will classify you as all revolving cards at $0, which involves a penalty.

I also note that you are concerned that your utilization needs to be a full 1% of your total credit limit.  FICO rounds all such percents up.  Thus, suppose Bob has four cards with a 10k limit each.  One card has a $6 balance and the others are at $0.  FICO will perceive Bob has having a 1% individual utilization (on the one card) and a 1% total utilization -- even though his precise util is < 0.1%.

Finally, as NRB observes, you need to be thinking about what credit outcome you are soliciting, and then choose the strategy that is best suited to it, rather than allowing the strategy (e.g. the almighty AZEO) to drive everything.  You are trying to convince a CC company that your current credit limit is far too small for your needs.  Having your cards regularly report mostly zeroes with one small balance may not be the best way to convince them that you need a bigger limit.  Although it may help your FICO score, the CC company may have other internal metrics for deciding whether a person needs a bigger credit limit.

AZEO was first conceptualized as an easy strategy for people preparing to apply for an important loan, like a mortgage.  It may have less value when applied to other things, such as CLIs.

---

[SouthJamaica]

---

@Anonymouswrote:

So I am due to request a 61 day CLI w/ AMEX next week and wanted to try and maximize my score using the AZEO tactic (didn't know about it until recently.)  I had planned to have QS at "$0" and ED report a balance of $200 or so (would make util roughly 5%) before statement cuts for AMEX on 3/9.  Unfortunately, QS was linked (from forever ago) to craigslist job posting site so when my wife posted for a job at her business this past week, she was charged $7 and now QS is showing statement balnace of $7 b/c statement cuts on the second.  My question is, should I just only let that "$7" report and pay the ED to "0$" or is the 7$ too insignificant to even show up as 1% util.  Overall available credit across accounts is about just shy of 5,000. Thank you. 

---

$7 counts. It will show up as a balance.

[Anonymous]

Capital One will report a $1 or greater balance.  Anything $0.99 or less will be reported as $0.

[OmarR]

---

@Anonymouswrote:

For any person who wants to implement AZEO, the card that shows the positive balance should be a plain Jane credit card.  That is, it should be:

(1) A true credit card (not a charge card)

(2) A card in your name (not an AU card)

(3) A card with a balance of at least $5

(4) A card with a credit limit of < 29k

---

---

Why #4??

[Anonymous]

---

@OmarRWhy #4??

---

Under some scoring models, account with credit limits of $30k+ are ignored from calculating revolving utilization, so if you used one of those cards as your AZEO, it could be ignored and you'd have a scoring penalty for "no revolving credit use."