@AI_JMV wrote:OK, so I am getting ready to refinance, and looking to save $1k a month with the new interest rates. I am working on maximizing my score so I have the best possible rate. Right now I am on track for AZEO with one revolving card at 1%, but would like to know if taking the All Zero approach is the correct one for mortgage scores? I don't care about Fico 8.. just need to maximize the mortgage ficos. Thanks in advance!
Yes. In fact the mortgage scores are the primary reason for maintaining AZEO.
Just make sure the one balance-reporting card is a bank card, not a credit union or store card, and either (a) not a Chase card, or (b) if a Chase card, not paid down to zero at any point.
@DebtStinks wrote:
What's wrong with a credit card from a credit union when it comes to AZEO method?
It's possible that the mortgage scores don't count a credit union card as a card carrying a balance for purposes of AZEO. Some members of this forum are pretty convinced of that. So why take the chance? Especially since the mortgage scores are the primary reason to employ AZEO.
I would have to respectfully disagree. An account's impact on your FICO score(s) should not, in any way, be related to the furnisher of the information (i.e. bank vs credit union, etc.) This would be a violation of the FCRA. It should, however, be related to HOW the account is being designated when reported (i.e. credit card vs charge account in this example)
For reference, if you have any "store cards" or a TRUE AMEX "charge card" you can look on your myfico.com report(s) and reference the "Loan Type" section of the "More Details" section of your report(s). There, you will find the designation Credit Card, Charge Account, etc.