All zeroes in a thin file --> 31 points down

[SouthJamaica]

A relative with a thin file (2 credit cards + 1 AU card) dropped 31 points [?!*] in EX FICO 8 when all 3 reported zero.

Holy cow.

Question: The AU card usually reports a zero balance. If it were permitted to report a small balance, would that count towards AZEO and remove the penalty?

[Remedios]

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@SouthJamaica wrote:

A relative with a thin file (2 credit cards + 1 AU card) dropped 31 points [?!*] in EX FICO 8 when all 3 reported zero.

Holy cow.

Question: The AU card usually reports a zero balance. If it were permitted to report a small balance, would that count towards AZEO and remove the penalty?

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Way back when I had AU accounts, if one of those was the only account reporting a balance, there was some points loss (around 10).

Less than if none reported a balance, but still a loss 

[Anonymous]

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@SouthJamaica wrote:

A relative with a thin file (2 credit cards + 1 AU card) dropped 31 points [?!*] in EX FICO 8 when all 3 reported zero.

Holy cow.

Question: The AU card usually reports a zero balance. If it were permitted to report a small balance, would that count towards AZEO and remove the penalty?

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@omgitsMatt  found that there is a double penalty for All Zero with an AU card. It looks like this is more confirmation of what he found.

AU experiment & score drops from small balance to $0 balance  

[SouthJamaica]

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@Anonymous wrote:

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@SouthJamaica wrote:

A relative with a thin file (2 credit cards + 1 AU card) dropped 31 points [?!*] in EX FICO 8 when all 3 reported zero.

Holy cow.

Question: The AU card usually reports a zero balance. If it were permitted to report a small balance, would that count towards AZEO and remove the penalty?

---

@omgitsMatt  found that there is a double penalty for All Zero with an AU card. It looks like this is more confirmation of what he found.

AU experiment & score drops from small balance to $0 balance  

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I don't know what to make of that thread. Is it saying that there is a penalty for one's AU account reporting at zero? Is it saying that:

1 account at zero, 1 account with small balance, 1 AU with small balance = best

1 account at zero, 1 account with small balance, 1 AU at zero = 2nd best

2 accounts at zero + 1 AU with small balance = 3rd best

2 accounts at zero + 1 AU at zero = the worst

[SouthJamaica]

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@Remedios wrote:

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@SouthJamaica wrote:

A relative with a thin file (2 credit cards + 1 AU card) dropped 31 points [?!*] in EX FICO 8 when all 3 reported zero.

Holy cow.

Question: The AU card usually reports a zero balance. If it were permitted to report a small balance, would that count towards AZEO and remove the penalty?

---

Way back when I had AU accounts, if one of those was the only account reporting a balance, there was some points loss (around 10).

Less than if none reported a balance, but still a loss 

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So are you saying that for AZEO purposes, using an AU account as the balance-carrying account reduces, but does not eliminate, the all zero penalty?

[Remedios]

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@SouthJamaica wrote:

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@Remedios wrote:

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@SouthJamaica wrote:

A relative with a thin file (2 credit cards + 1 AU card) dropped 31 points [?!*] in EX FICO 8 when all 3 reported zero.

Holy cow.

Question: The AU card usually reports a zero balance. If it were permitted to report a small balance, would that count towards AZEO and remove the penalty?

---

Way back when I had AU accounts, if one of those was the only account reporting a balance, there was some points loss (around 10).

Less than if none reported a balance, but still a loss 

---

So are you saying that for AZEO purposes, using an AU account as the balance-carrying account reduces, but does not eliminate, the all zero penalty?

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That has been my experience,  yes.

My all zero penalty used to be around 25 points. If AU card was the only one reporting a balance, I'd experience 10 to 11 point loss compared to AZEO. 

No utilization changes, AU card would report something like $10.00 

[SouthJamaica]

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@Remedios wrote:

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@SouthJamaica wrote:

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@Remedios wrote:

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@SouthJamaica wrote:

A relative with a thin file (2 credit cards + 1 AU card) dropped 31 points [?!*] in EX FICO 8 when all 3 reported zero.

Holy cow.

Question: The AU card usually reports a zero balance. If it were permitted to report a small balance, would that count towards AZEO and remove the penalty?

---

Way back when I had AU accounts, if one of those was the only account reporting a balance, there was some points loss (around 10).

Less than if none reported a balance, but still a loss 

---

So are you saying that for AZEO purposes, using an AU account as the balance-carrying account reduces, but does not eliminate, the all zero penalty?

---

That has been my experience,  yes.

My all zero penalty used to be around 25 points. If AU card was the only one reporting a balance, I'd experience 10 to 11 point loss compared to AZEO. 

No utilization changes, AU card would report something like $10.00 

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Fascinating. I'm going to start watching this. Seems like this is a major thing: you can help someone's credit score by letting their AU card report a small balance, and hurt their score by paying it off before it reports. How's that for non-intuitive?

[Remedios]

I think it follow same "logic" as all zero penalty. 

No debt, nothing to asses how you will pay, even though you've been paying for years and decades. 

AU debt, you're not responsible for payment, but balance is present, so "compromise". 

I'm actually shocked when something is intuitive when it comes to scoring. 

[Anonymous]

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@SouthJamaica wrote:

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@Anonymous wrote:

@omgitsMatt  found that there is a double penalty for All Zero with an AU card. It looks like this is more confirmation of what he found.

AU experiment & score drops from small balance to $0 balance  

---

I don't know what to make of that thread. Is it saying that there is a penalty for one's AU account reporting at zero? Is it saying that:

1 account at zero, 1 account with small balance, 1 AU with small balance = best

1 account at zero, 1 account with small balance, 1 AU at zero = 2nd best

2 accounts at zero + 1 AU with small balance = 3rd best

2 accounts at zero + 1 AU at zero = the worst

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I'm pretty sure you got it right.

Having 1 of 2 report a balance (no AU, 2 bank-issued cards) would always raise my EQ/TU 8 scores +19 and +14, respectively. EX 8 doesn't move, but +6 on EX 2 isn't bad. The TU 9's saw +27pts!

So have them try that.

[Anonymous]

Some intersting DP's, thanks. I opened two AU's for a family member but do not track their scores, did not have any other acounts until recenlty opened a Secured Disco. This Relative has been disabled all their life and has lived with family, back in 16 that person past away and now resides with me. But I had to move and the leasing agent wanted their CR too, but since no job and no credit... They were hesitant which meant I had to put up a slighlty larger deposit. I think the main was I had no rental history though, as I own my house.

Which lead me to put him as an AU on a couple of my acounts hoping to avoid that problem in the future. just with the two AU's and one  secured his scores are just above 750 and have hovered there the last two years.