And while we contemplate how much score impact AZ has in the moment, note that score only went down to 780’s. This is due to known recent payment history no doubt, just zero “today” balance.
What happens to a file left with AZ consistently for 6 months or a year? The monthly “Ok” may keep adding for open accounts, but is that sufficient to keep a score in the 780’s long term? Is there another decay factor if AZ continues?
Perhaps one way to try to stay at “AZ” would be to leave all revolvers at zero, and only use an AMEX charge card. If I understand correctly that may be a proxy for AZ?
And my guess is that even if someone maintains AZ, as long as a set of (or one) credit card remains open, adding to aging, scores should continue to increase over time, due to simple aging of the file. There would be points “missed” with no revolver reporting a balance but the trend should be up.
The next question, is it sufficient to have only one AMEX charge card open, no other CC, to see scores rise. The same issue with “missing points from no revolving CC” but the foundation of credit is still building history.
And my guess is that even if someone maintains AZ, as long as a set of (or one) credit card remains open, adding to aging, scores should continue to increase over time, due to simple aging of the file. There would be points “missed” with no revolver reporting a balance but the trend should be up.
The next question, is it sufficient to have only one AMEX charge card open, no other CC, to see scores rise. The same issue with “missing points from no revolving CC” but the foundation of credit is still building history.
