AZEO

[AllZero]

@Anonymous. Thank you for providing your expertise.

[credit8502020]

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@AllZero wrote:

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@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. 

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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

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Ok. Thank you!!! 

So in October, should report as follows:

• Credit Card 1 - Balance - $0
• Credit Card 2 - Balance - 2-10%
• AU Credit Card - Balance - 2-10%

When I get closer to my new mortgage next year, I'll also keep the other formula in mind and also for some of my clients that are looking to buy a home! Thank you again! 

[AllZero]

@credit8502020  This is based on EX2 testing. I can only guess that TU4, EQ5 would react similarly since it's the older scoring model.

Update: FICO2 experiment (is it worth it?)

[Anonymous]

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@credit8502020 wrote:

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@AllZero wrote:

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@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. 

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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

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Ok. Thank you!!! 

So in October, should report as follows:

• Credit Card 1 - Balance - $0
• Credit Card 2 - Balance - 2-10%
• AU Credit Card - Balance - 2-10%

When I get closer to my new mortgage next year, I'll also keep the other formula in mind and also for some of my clients that are looking to buy a home! Thank you again! 

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Yes in theory, but from our latest knowledge and understanding, if you report 9.5%, it will be rounded to 10% and you'll be in the next interval, so really you need to report less than 9.5%, but a small balance on one card.

[Anonymous]

There’s nothing special about 2% you just have to make sure you have a positive balance on one card. 0% to < 9.5%.

[credit8502020]

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@Anonymous wrote:

Whether or not the AU helps on version 8 & 9 depends on whether the anti-abuse algorithm flags it, but it will help with the mortgage scores.

As for that loan officers advise it, it is not the best for all profiles. They are wrong for some people if they advise that to all. While an old thick profile might do fine with two credit cards reporting, a young thin file would not do as well.

There is evidence that EX2 counts closed revolvers in the number/percentage of revolvers with a balance metric. I have no idea whether it applies to any other version.

That close revolver with the balance, is it showing delinquent? And is it showing the credit limit?

AZEO as described by @AllZero is best to optimize any profile. If you had more cards, you would realize more of a gain, version depending. Don’t go get more cards right now though because the new accounts would penalize you worse than the help of having more cards, at least while they’re new.

Now, if you have time before you have anything you have to do, at least a year, then yes, add some cards.

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@Anonymous 

Yes, it is red and showing as delinquent. 

On my FiCO 3B report, the payment status on the closed revolver is as follows:

EQ - Pays account as agreed
TU - Paid or paying as agreed
EXP - Current account/was delinquent 60 days past due date

In 2018, I had the following 3 late payments: 1. 30D - 8/18, 2. 60D - 9/18, 3. 30D - 10/18

Yes, it's showing the credit limit of $10,600 and showing the credit utilization of 33%.

Ok, regarding the cards. I don't have any inquiries now and definitely want to increase my limits since they are so low and prepare to start building business credit, but would like to improve my personal profile being in a position for my business cards in the future. Unfortunately, my $750 card is with Open Sky so of course I will not get an increase on that car...you live and learn! So I definitely want a few more cards to overall build my profile. I haven't applied for anything in 3 years. I wish I had, but again, I've lived and I've learned. & still learning...

[credit8502020]

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@AllZero wrote:

@credit8502020  This is based on EX2 testing. I can only guess that TU4, EQ5 would react similarly since it's the older scoring model.

Update: FICO2 experiment (is it worth it?)

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Ok. Thank you! 

[Anonymous]

Do you have a need for a mortgage in the next year or two?

[credit8502020]

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@Anonymous wrote:
There’s nothing special about 2% you just have to make sure you have a positive balance on one card. 0% to < 9.5%.

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Ok. Good to know! I was told that 2% was the ideal number so thanks for sharing this

[Anonymous]

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@credit8502020 wrote:

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@Anonymous wrote:

Whether or not the AU helps on version 8 & 9 depends on whether the anti-abuse algorithm flags it, but it will help with the mortgage scores.

As for that loan officers advise it, it is not the best for all profiles. They are wrong for some people if they advise that to all. While an old thick profile might do fine with two credit cards reporting, a young thin file would not do as well.

There is evidence that EX2 counts closed revolvers in the number/percentage of revolvers with a balance metric. I have no idea whether it applies to any other version.

That close revolver with the balance, is it showing delinquent? And is it showing the credit limit?

AZEO as described by @AllZero is best to optimize any profile. If you had more cards, you would realize more of a gain, version depending. Don’t go get more cards right now though because the new accounts would penalize you worse than the help of having more cards, at least while they’re new.

Now, if you have time before you have anything you have to do, at least a year, then yes, add some cards.

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@Anonymous 

Yes, it is red and showing as delinquent. 

On my FiCO 3B report, the payment status on the closed revolver is as follows:

EQ - Pays account as agreed
TU - Paid or paying as agreed
EXP - Current account/was delinquent 60 days past due date

In 2018, I had the following 3 late payments: 1. 30D - 8/18, 2. 60D - 9/18, 3. 30D - 10/18

Yes, it's showing the credit limit of $10,600 and showing the credit utilization of 33%.

Ok, regarding the cards. I don't have any inquiries now and definitely want to increase my limits since they are so low and prepare to start building business credit, but would like to improve my personal profile being in a position for my business cards in the future. Unfortunately, my $750 card is with Open Sky so of course I will not get an increase on that car...you live and learn! So I definitely want a few more cards to overall build my profile. I haven't applied for anything in 3 years. I wish I had, but again, I've lived and I've learned. & still learning...

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You should've experienced scorecard reassignment the first of this month when that 60 day late aged to 2 years. On the mortgage scores, you should've went to a clean scorecard and I believe on version 8 & 9, you go to a mature delinquency card. 

So your scores may have changed quite a bit maybe the first of this month, you probably went up on 8 and 9, you may have went down on 542.