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Azeo method

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Super Contributor

Re: Azeo method

NOTE:  I wrote the following at the same time TT was making his wise response!

 

Your plan is fine.  Pay the amount owed down to a small number (e.g. $10) a couple days before the statement prints.

 

Then pay the statement balance any time after the statement prints.  This second piece you could take care of by putting your card on autopay (it should give the option of paying the statement balance in full).

 

PS.  You use the phrase "carry the balance."  Your Cap One will actually not be carrying a balance.  Suppose your statement balance was $400 (as of Nov 13).  If you then paid $100 (far more than the minimum payment but less than the statement balance) the $300 remainder would be carried over to the next statement. That's what carrying means.  It almost always involves paying interest.

 

Suppose instead that you made a $50 purchase on Nov 14 (taking your balance to $450) and then paid the statement balance on Nov 19 ($400).  If you made no further purchases for 30 days your next statement would show $50 and that amount would be reported to the three bureaus.  You would be reporting $50 but not carrying $50.  Reporting is the key idea in AZEO.  No current FICO models attempt to see if you are carrying balances, though it is possible that FICO 10 ot some other future model might consider that.

 

 

Message 11 of 12
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Frequent Contributor

Re: Azeo method


@CreditGuyInDixie wrote:

NOTE:  I wrote the following at the same time TT was making his wise response!

 

Your plan is fine.  Pay the amount owed down to a small number (e.g. $10) a couple days before the statement prints.

 

Then pay the statement balance any time after the statement prints.  This second piece you could take care of by putting your card on autopay (it should give the option of paying the statement balance in full).

 

PS.  You use the phrase "carry the balance."  Your Cap One will actually not be carrying a balance.  Suppose your statement balance was $400 (as of Nov 13).  If you then paid $100 (far more than the minimum payment but less than the statement balance) the $300 remainder would be carried over to the next statement. That's what carrying means.  It almost always involves paying interest.

 

Suppose instead that you made a $50 purchase on Nov 14 (taking your balance to $450) and then paid the statement balance on Nov 19 ($400).  If you made no further purchases for 30 days your next statement would show $50 and that amount would be reported to the three bureaus.  You would be reporting $50 but not carrying $50.  Reporting is the key idea in AZEO.  No current FICO models attempt to see if you are carrying balances, though it is possible that FICO 10 ot some other future model might consider that.

 

Thank you so much!  I am now very clear on this.  Again, thanks! 




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Message 12 of 12
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