All Zero balance = 13 point score drop -- An experiment report

[Anonymous]

Right.  Many times the AZ penalty is incurred due to us over-officiating our profiles, where if that weren't the case the penalty would be quite difficult to be hit with the majority of the time.

[barca]

I learned the hard way too. I have always underated the power of AZEO.

couple of months ago, I let all my balance report 0.

I lost 20 points in FICO 8 accross all CRA.

I gained the exact 20 points back when I allow AZEO just before one of my credit card statement date.

Noticably, my mortgage scores did not change, infact I gained couple of points in TU mortgage when I let all my CC balance report 0

[Anonymous]

When you say you "let" all of your balances report $0, how did you arrive at that.  What I mean is were you not using cards, or were you using them and just completely paying them off right before the statement closing period / paying current balances at the end of the cycle instead of previous statement balances?

[barca]

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@Anonymous wrote:

When you say you "let" all of your balances report $0, how did you arrive at that.  What I mean is were you not using cards, or were you using them and just completely paying them off right before the statement closing period / paying current balances at the end of the cycle instead of previous statement balances?

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I normally make payments right before the statement closing - that way I can control the balance  reported to the CRA.

This particular time I payed it to zero, but I had calculated a recent charge will be posted before the statement.

That charge never posted, hence I had $0 balance at statement closing.

[Anonymous]

That's sort of what I figured.  Circling back to Post 21 of this thread, that really falls under the over-officiating of our files being the cause of the AZ penalty quite often.

[Anonymous]

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@barca wrote:

I learned the hard way too. I have always underated the power of AZEO.

couple of months ago, I let all my balance report 0.

I lost 20 points in FICO 8 accross all CRA.

I gained the exact 20 points back when I allow AZEO just before one of my credit card statement date.

Noticably, my mortgage scores did not change, infact I gained couple of points in TU mortgage when I let all my CC balance report 0

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@barca how do you conclude that your mortgage scores did not change? Did you purchase a new report after AZ had reported?

[barca]

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@Anonymous wrote:

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@barca wrote:

I learned the hard way too. I have always underated the power of AZEO.

couple of months ago, I let all my balance report 0.

I lost 20 points in FICO 8 accross all CRA.

I gained the exact 20 points back when I allow AZEO just before one of my credit card statement date.

Noticably, my mortgage scores did not change, infact I gained couple of points in TU mortgage when I let all my CC balance report 0

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@barca how do you conclude that your mortgage scores did not change? Did you purchase a new report after AZ had reported?

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after AZ reported is when I pulled my monthly 3B report.
I normally wait couple of 1 or 2 weeks to pull the monthly report so as to capture all events after the statement are sent to CRA

[Anonymous]

@barca would you mind listing the Negative reason codes for each? 542?

[barca]

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@Anonymous wrote:

@barca would you mind listing the Negative reason codes for each? 542?

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My Exp does not have reason code:

same reason code for TU and EQ

MORTGAGE SCORES ONLY

for this report mortgage scores :

EX = 802, EQ = 794, TU = 774.

The inquiry is gone on 12/19/2020 - so no more inquiry

EX now 813

I will know EQ and TU couple of weeks from now

hopefully I will gain 10 points each .

The other reason codes does not make sense

BTW - I just paid off cap one auto two weeks ago, they will report closed auto maybe end of the month.

I hope to see additional increase in the mortgage scores

[Anonymous]

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@barca wrote:

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@Anonymous wrote:

@barca would you mind listing the Negative reason codes for each? 542?

---

My Exp does not have reason code:

same reason code for TU and EQ

MORTGAGE SCORES ONLY

for this report mortgage scores :

EX = 802, EQ = 794, TU = 774.

The inquiry is gone on 12/19/2020 - so no more inquiry

EX now 813

I will know EQ and TU couple of weeks from now

hopefully I will gain 10 points each .

The other reason codes does not make sense

BTW - I just paid off cap one auto two weeks ago, they will report closed auto maybe end of the month.

I hope to see additional increase in the mortgage scores

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@barca wait a minute is that your 5/4 reason codes? If so, yes you are receiving a point loss for having all revolvers at zero! Once a small balance reports the scores will go up!