@FishingGuy wrote:I usually try to do AZEO whenever possible, and make payments to do so before a bill cuts. I heard somewhere (on-line)... that if you allow the bill to cut, or numerous bills to cut with a small balance, let's say under $10 it is better...... since it shows numerous payments due & then made.
Does anyone know if there is any validity to that? ... and if so, if I have no intention to applying for any new credit in the near (6 month ) future am I better off doing that rather than AZEO ? ..... and would there be any difference in credit scores, short term or long term?
When you next apply for credit, in general, your score will be higher if your report shows AZEO rather than numerous small balances. The current FICO score model is static and doesn't care if you paid off dozens of small bills in previous months.
@NYC_Fella wrote:
@FishingGuy wrote:I usually try to do AZEO whenever possible, and make payments to do so before a bill cuts. I heard somewhere (on-line)... that if you allow the bill to cut, or numerous bills to cut with a small balance, let's say under $10 it is better...... since it shows numerous payments due & then made.
Does anyone know if there is any validity to that? ... and if so, if I have no intention to applying for any new credit in the near (6 month ) future am I better off doing that rather than AZEO ? ..... and would there be any difference in credit scores, short term or long term?
When you next apply for credit, in general, your score will be higher if your report shows AZEO rather than numerous small balances. The current FICO score model is static and doesn't care if you paid off dozens of small bills in previous months.
While I am aware of the AZEO model which claims best scores if only one card is reporting a small balance, I am also aware of many folks who have said that rule doesn't really apply to folks on a dirty score card. I have a Chapter 13 on my record (for another 4 months) and have had 0 cards report (definitely got hit with the "All Zero" penalty), 1, 2, and all 3 of my cards report a small balance, and have yet to see a single point difference between AZEO and AZET (...except Two or Three).
@Horseshoez wrote:
While I am aware of the AZEO model which claims best scores if only one card is reporting a small balance, I am also aware of many folks who have said that rule doesn't really apply to folks on a dirty score card. I have a Chapter 13 on my record (for another 4 months) and have had 0 cards report (definitely got hit with the "All Zero" penalty), 1, 2, and all 3 of my cards report a small balance, and have yet to see a single point difference between AZEO and AZET (...except Two or Three).
That's why I said "in general". My experience is similar to yours. I have a Chapter 7 on my record. I did get the all-zero penalty (36 points!!) a few months ago but I have regained those points by trying to practice AZEO to the extent I remember to do so. However, I've had two minor inadvertent deviations from AZEO in the last few months and they have not affected my score by even a point. Like you, I suspect that clean reports with high scores are more sensitive than messy reports with middling scores.
If you look at your real reports. It will show how much was charged each month or high balance. Then it shows $0 balance for posting date. They know and report how much you use the card before you pay it off for AZEO.
@FireMedic1 wrote:If you look at your real reports. It will show how much was charged each month or high balance. Then it shows $0 balance for posting date. They know and report how much you use the card before you pay it off for AZEO.
I was under the impression that the "high balance" was an all-time number, not a monthly number. I could be wrong.
@FishingGuy Like others have said, it will show on your reports the date of when your last payment was made regardless.
Aside from score points, I personally use AZEO to avoid missing a payment, and having more control over my accounts. I use Mint app for this and it's easier to track where the debt is at.
So AZEO to me offers more than scores, is security and it has helped me in the last 5yrs.
