AZEO works

[Jeffster1]

I have been maintaining a $3.00 balance on my Cap One Walmart card for months, and before that, my AZEO balance card was a now-closed Merrick card. 

I decided to switch my AZEO balance card to my Capital One QS. There is a 3-day reporting difference between my Walmart and my QS. 

I brought my Walmart MC to zero, and brought the QS to a $3.00 balance. During the 3-day reporting gap between the two cards, I lost 20 points on EX; 12 points on EQ and 2 points on TU. This was in FICO8.

As soon as the QS reported the $3.00 balance, all 3 scores bounced back and I recovered all my points.

A while back, I was on another credit board and was told I didn't know what I was talking about when I dared say I believed in AZEO. They told me that it ONLY makes a difference when you are buying a house blah blah blah. I held my own but I thought I would add my own experience here. 

[Brian_Earl_Spilner]

There's no doubt AZEO exists. I think the main thought is it's not worth the effort unless you're applying for something like a house where points may get you a lower rate. This is where I stand with AZEO. 

[CreditCuriosity]

Agreed with above poster.. Sure if you want to look better if you have so-so scores and it matters or worried about DTI calculations etc then ya..  If you are in or around 800 being at 765 or 850 really doesn't matter so no need to do azeo..  Now if you are at 660 or something with several balances and want to apply for something by all means do azeo.  Other if you have alot of cards you will lose unnecessary sleep trying to keep azeo.

[Jeffster1]

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@Brian_Earl_Spilner wrote:

There's no doubt AZEO exists. I think the main thought is it's not worth the effort unless you're applying for something like a house where points may get you a lower rate. This is where I stand with AZEO. 

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It's not really any effort for me. I just carry the AZEO balance card in my wallet and make sure I make a purchase that  exceeds the card's minimum payment at least one week prior to the due date. Then, once it posts to my account, I pay all but $3.00. 

[Jeffster1]

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@CreditCuriosity wrote:

Agreed with above poster.. Sure if you want to look better if you have so-so scores and it matters or worried about DTI calculations etc then ya..  If you are in or around 800 being at 765 or 850 really doesn't matter so no need to do azeo..  Now if you are at 660 or something with several balances and want to apply for something by all means do azeo.  Other if you have alot of cards you will lose unnecessary sleep trying to keep azeo.

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No sleep lost at all. It's easy as pie. I'm well into the 700s and climbing. I've seen plenty of people on here well into the 800s who cry over the loss of a few points. 

And it also keeps a card active which I would probably never use.

[NoHardLimits]

The loss of points during the 3 day gap is most likely due to the all-zero penalty.  When a card reported a balance, the all-zero penalty went away.  AZEO is actually a different scoring topic than the all-zero penalty.

[Jeffster1]

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@NoHardLimits wrote:

The loss of points during the 3 day gap is most likely due to the all-zero penalty.  When a card reported a balance, the all-zero penalty went away.  AZEO is actually a different scoring topic than the all-zero penalty.

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Of course that's why rhe score fell. Not "most likely." That's the point of my post. Walmart MC reported 0 on 2/18 (down from $3.00). Points lost. THEN... QS reported a $3 balance on 2/21. Points came back as soon as balance reported. 

Again...that was the point of the post. I NEVER carry a balance except for the ONE card on which I maintain a $3.00 balance for AZEO.

[Aeon]

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@Jeffster1 wrote:

Again...that was the point of the post. I NEVER carry a balance except for the ONE card on which I maintain a $3.00 balance for AZEO.

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But you tested the all zero penalty, not AZEO. To test AZEO you need to carry a balance on two or more cards and see how many points you lose. You may find that your point loss is within a "reasonable" range for you and AZEO doesn't make sense. Or you may find that you'll keep on with AZEO because, like you say, it's pretty easy for you to do. 

[OmarR]

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@Jeffster1 wrote:

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@NoHardLimits wrote:

The loss of points during the 3 day gap is most likely due to the all-zero penalty.  When a card reported a balance, the all-zero penalty went away.  AZEO is actually a different scoring topic than the all-zero penalty.

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Of course that's why rhe score fell. Not "most likely." That's the point of my post. Walmart MC reported 0 on 2/18 (down from $3.00). Points lost. THEN... QS reported a $3 balance on 2/21. Points came back as soon as balance reported. 

Again...that was the point of the post. I NEVER carry a balance except for the ONE card on which I maintain a $3.00 balance for AZEO.

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As the others mentioned, there's a difference between reporting AZEO and reporting no credit-mix AZ.

I also change up my one reporting card (due to spending in that given month) and during that window of no credit mix reporting, my 8 scores lose between 21-25 points. 

If I allow AZE2 or even AZE3, small balances, my 8 scores do not move, but my mortgage scores lose about 5-7 points.

[Jeffster1]

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@Aeon wrote:

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@Jeffster1 wrote:

Again...that was the point of the post. I NEVER carry a balance except for the ONE card on which I maintain a $3.00 balance for AZEO.

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But you tested the all zero penalty, not AZEO. To test AZEO you need to carry a balance on two or more cards and see how many points you lose. You may find that your point loss is within a "reasonable" range for you and AZEO doesn't make sense. Or you may find that you'll keep on with AZEO because, like you say, it's pretty easy for you to do. 

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Why would I keep a balance on two or three cards when I PIF? AZEO using one card is enough for me. I don't carry balances. Proving AZEO by witnessing the drop during the 3-days all my revolving accounts were at zero and then the increase back when ONE account reported $3.00 was enough proof for me.