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Azeo method

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Established Member

Azeo method

I see this a lot in the forum but I don't know what it means. Could anyone explain?
Message 1 of 12
11 REPLIES 11
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Contributor

Re: Azeo method


@Msashley0819 wrote:
I see this a lot in the forum but I don't know what it means. Could anyone explain?

Hi, there is a post that describes common abbreviations on these forums, I've linked it for you here.

 

AZEO stands for All Zero Except One. If you have at least 3 credit card acounts, you can maximize your credit scores by having all of the cards report a $0 balance, except one which reports anywhere from 1-8.9% utilization.

 

 

04/20/17 - Fico Score 8: EQ 695, TU 689, EX 728; Mortgage: EQ 731, TU 740, EX 815 [Starting Point on MyFico]
05/09/18 - Fico Score 8: EQ 827, TU 821, EX 811; Mortgage: EQ 815, TU 795, EX 822 [Latest MyFico 3B]
Message 2 of 12
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New Contributor

Re: Azeo method

Isn't it complicated to keep track of a balance of under 9%? I just pay everything off if I can.

26 years old

Wells Fargo Platinum - $1500
Chase Sapphire Preferred - $8500
Discover it® Card - $9600
AMEX EveryDay - $8000
Chase Freedom - $5000
Capital One QuicksilverOne - $1900
Barclaycard Apple Rewards - $600
Chase Slate - $1500
Capital One Platinum - $750

Lease - Audi Financial Services - $33,887 cur. balance, $55,063 orig. balance, buy rate money factor, MSRP $83,365
Auto Loan - Bank of America - $59,953 cur. balance, $60,668 orig. balance
Auto Loan - Alliant Credit Union - $61,728 cur. balance, $63,473 orig. balance
Auto Loan - Flagship - orig. $20,617, paid/closed

Installment - FNCU - Secured $1500 paid/closed
Installment - City National New Jersey (Self Lender) - Secured orig. $1000, paid/closed
Installment - Lead Bank (Self Lender) - Secured orig. $545, paid/closed

Equifax - 645
TransUnion - 627
Experian - 669
Message 3 of 12
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Super Contributor

Re: Azeo method



Isn't it complicated to keep track of a balance of under 9%? I just pay everything off if I can.


What matters is your reported balance, which is usually your statement balance.  You don't have to worry about this for about 25 days out of the month, but a few days before your due date and/or the date when your next statement is going to cut you're going to want to pay your previous statement balance in full, plus any new charges that would take that balance over 8.9% of the limit.  A best practice is to just leave a small balance behind, say $10-$15.  You don't have to keep your balance at under 8.9% all month long by making extra payments all the time or anything, just ensure that your reported balance lands under 8.9%.

Message 4 of 12
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Super Contributor

Re: Azeo method


@SoundoftheSuburbs wrote:

Isn't it complicated to keep track of a balance of under 9%? I just pay everything off if I can.


Are you saying that your cards usually report $0 for all your balances?  If so FICO is imposing a penalty of about 15-20 points on you.

 

Given that your scores are in the low 600s you should be looking to get every extra point you can, and certainly you should be doing this in the 40 days prior to any further application for credit.

Message 5 of 12
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Frequent Contributor

Re: Azeo method

I want to make certain I have the Azeo crystal clear in my mind.  I PIF my cc’s each month.  Starting in November, I want to utilize the Azeo method.  I will be using my Cap1 cc to carry the balance.  My billing cycle ends on the 12th of each month, and payment is due by the 9th the following month.  As an example I charge $89 today on the card.  I’ll pay $64 on Nov. 5th, and when the billing cycle ends on Nov. 12th, the remaining $25 will show on the statement.  If I pay the remaining $25 on Nov. 25th, will that suffice—or do I have to pay the remaining balance on the 7th or 8th of December (I would prefer to pay much earlier, however) in order for the CRA’s to show a balance?  I only have  a cl of $500 on this card.  

 

Thanks for any advice!

Starting Score: 784
Current Score: 784
Goal Score: 800


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Message 6 of 12
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Senior Contributor

Re: Azeo method


@CAS2019 wrote:

I want to make certain I have the Azeo crystal clear in my mind.  I PIF my cc’s each month.  Starting in November, I want to utilize the Azeo method.  I will be using my Cap1 cc to carry the balance.  My billing cycle ends on the 12th of each month, and payment is due by the 9th the following month.  As an example I charge $89 today on the card.  I’ll pay $64 on Nov. 5th, and when the billing cycle ends on Nov. 12th, the remaining $25 will show on the statement.  If I pay the remaining $25 on Nov. 25th, will that suffice—or do I have to pay the remaining balance on the 7th or 8th of December (I would prefer to pay much earlier, however) in order for the CRA’s to show a balance?  I only have  a cl of $500 on this card.  

 

Thanks for any advice!


Your card reports $25 on a $500 balance on November 12th. Your reported utilization will be 5%. Then you need to pay the reported balance before the due date (Dec 9) for PIF. You actually do not want to "carry" a balance as that will trigger interest payments.

 

For AZEO then all other cards being used need to be paid in full by the statement date (not the due date) so they report a zero statement balance.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 7 of 12
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Senior Contributor

Re: Azeo method

Yeah, "carry" a balance means to revolve a balance and pay interest (or take advantage of a 0% interest period). You don't have to do that.

 

Post a balance, cut a balance, print a balance, etc. refer to non-zero statement balances, no matter how they're acquired. Often, members use "carry" a balance synonymously with these terms, and we need to discern whether or not interest is part of the equation.

Message 8 of 12
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Frequent Contributor

Re: Azeo method

I think this is the same as I am thinking.  So I charged $89. yesterday and  pay $64 anytime before Nov. 12th, the statement will show $25 to be paid by Dec. 9th (and I won’t incur any interest charges).  This is the way to handle Azero in my case, correct?  When I used the word “balance”, I am referring the difference from the $89 minus $64.  The $25 is what I will owe on the statement.

Starting Score: 784
Current Score: 784
Goal Score: 800


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Message 9 of 12
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Frequent Contributor

Re: Azeo method


@Thomas_Thumb wrote:

@CAS2019 wrote:

I want to make certain I have the Azeo crystal clear in my mind.  I PIF my cc’s each month.  Starting in November, I want to utilize the Azeo method.  I will be using my Cap1 cc to carry the balance.  My billing cycle ends on the 12th of each month, and payment is due by the 9th the following month.  As an example I charge $89 today on the card.  I’ll pay $64 on Nov. 5th, and when the billing cycle ends on Nov. 12th, the remaining $25 will show on the statement.  If I pay the remaining $25 on Nov. 25th, will that suffice—or do I have to pay the remaining balance on the 7th or 8th of December (I would prefer to pay much earlier, however) in order for the CRA’s to show a balance?  I only have  a cl of $500 on this card.  

 

Thanks for any advice!


Your card reports $25 on a $500 balance on November 12th. Your reported utilization will be 5%. Then you need to pay the reported balance before the due date (Dec 9) for PIF. You actually do not want to "carry" a balance as that will trigger interest payments.

 

For AZEO then all other cards being used need to be paid in full by the statement date (not the due date) so they report a zero statement balance.


Also, If all the cc’s have to be paid by the statement date,  how would you handle the various statement dates?  I have two Chase cards (different statement dates), a TJ Maxx store card, as well as the Cap1.  I tend to pay my cc’s the day it shows up on my online acct (way before the statement is cut).

Starting Score: 784
Current Score: 784
Goal Score: 800


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