@credit8502020 Does your closed Discover card show the original credit limit or does it show differently? e.g. If it shows $3,700 balance and $3,700 limit, you may be penalized for 100% individual utilization.
The current balance on your closed Discover card will be used in the aggregate utilization factor.
To my understanding, you may see a benefit with AZEO on the open accounts.
However, you may not be able to maximize the score benefit if your aggregate utilization is over a scoring threshold.
Perhaps, @Anonymous can advise further expertise.
@credit8502020 wrote:Also does AZEO work better with 3 or more cards?
For FICO 8s, preferably, you want to be under 50% of accounts reporting a balance. With 2 cards, you are at 50% of cards reporting a balance. However, score wise, it may be better than 100% of accounts reporting a balance. I'm not quite sure on the score gain. That is why they recommend 3 cards for AZEO.
For EX 2, TU4, EQ5; 5 cards is recommended by @Anonymous which I agree with so one can be around 20-25% of accounts reporting a balance.
@credit8502020 wrote:
@AllZero wrote:@credit8502020 Does your closed Discover card show the original credit limit or does it show differently? e.g. If it shows $3,700 balance and $3,700 limit, you may be penalized for 100% individual utilization.
The current balance on your closed Discover card will be used in the aggregate utilization factor.
To my understanding, you may see a benefit with AZEO on the open accounts.
However, you may not be able to maximize the score benefit if your aggregate utilization is over a scoring threshold.
Perhaps, @Anonymous can advise further expertise.
@AllZero When looking at my FICO® Score 3B Report, it shows my balance at $3495 and the limit at $10,600. I actually wanted to move this debt, but I'm just not certain yet of the best financial move to make if I don't current have the full $3500 to pay it off. A balance transfer card doesn't see the best way to go considering I would need a much higher limit to have a good utilization. So at this point, while I'm working to pay it down, it looks like the next best option is to get other lines that will help with my aggregate utilization. I have a $3700 Home Depot AU card that will report soon. However, I'm not 100% certain if that helps with the aggregate utilization since it's a store card and not a "regular" revolving card. Do you know if it would help?
@credit8502020 If not credit seeking, e.g. applying for a credit card, auto, mortgage loan, etc. then AZEO may or may not be beneficial. Other than to see what high scores you can obtain.
If a BT card is not available, then perhaps, pay down the closed Discover card as best as possible until the balance is zero.
The AU card may help utilization padding if it makes you go under a scoring threshold.
@credit8502020 wrote:
@AllZero wrote:
@credit8502020 wrote:Also does AZEO work better with 3 or more cards?
For FICO 8s, preferably, you want to be under 50% of accounts reporting a balance. With 2 cards, you are at 50% of cards reporting a balance. However, score wise, it may be better than 100% of accounts reporting a balance. I'm not quite sure on the score gain. That is why they recommend 3 cards for AZEO.
For EX 2, TU4, EQ5; 5 cards is recommended by @Anonymous which I agree with so one can be around 20-25% of accounts reporting a balance.
Ok. Great! Thank you! I'm planning to get a 3rd card soon. Was seeing if the Home Depot AU would report before doing so, just in case it helps with them approving me for a higher limit credit card since my highest revolving limit is $750.
@credit8502020 Are you a member of a credit union? If not, have you considered joining one?
@credit8502020 wrote:Does AZEO count AU cards as well in the equation or just primary accounts?
Most of my clients are preparing for a mortgage loan so it may definitely be good for them. I'm going to suggest to them to switch to the AZEO method, instead of 2% on each card. There is a loan officer online who sticks to a method of having 2 credit cards report $20 on each cards to obtain higher scores. I haven't tested it, but I thought it to be an interesting suggesting. She uses it with her clients.
Ok. Thanks re: AU. Is there a thread you would suggest where I can read up on scoring thresholds? I've seen some threads about it, but figured I would ask as well.
FICO 8s; AZEO + AU card reporting a small balance
EX2, TU4, EQ5; True AZEO, AU card reporting zero.
I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?
From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20
