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UPDATE - I did AZEO but FICO dropped my score claiming I have $0 debt

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patoot10
Frequent Contributor

UPDATE - I did AZEO but FICO dropped my score claiming I have $0 debt

Hello,

 

I recently did AZEO with one card having $67 balance and FICO dropped my score about 17 points for having $0 debt.

 

I understand if you have $0 debt your score will drop but why is FICO claiming I have $0 debt, please see the pictures below:

 

 

 

This is also affecting mortgage scores, not just FICO 8

 

=============================================================

 

9/28/2022 UPDATE

 

I checked my Experian report on 9/27/2022 and there were no changes to my total balance since no cards reported and score stayed the same with same scoring codes then on 9/28/2022 I checked again and this time all scores reverted back to how they were when the same card was reporting $250 balance and now I see the pictures below. I am not sure if this is a technical glitch or what but I can assure you nothing else changed in my report so it's like it initially treated it as no balance then did the right thing, this is a crappy thing to happen given that I am closing on a new home in 7 days and something like that dropped my Fico 2 on experian by 10 points but it bounced back along with my Fico 8 so it affected all scores for a couple of days

 

 




12 REPLIES 12
Jordan23ww
Valued Contributor

Re: I did AZEO but FICO dropped my score claiming I have $0 debt

Sorry this happened to you! This isn't normally how AZEO goes. I've been doing AZEO since May 2020. Could be a minor hickup that will be resolved next month. It could very well be a timing issue such as when the designated card you left a balance on closed in relation to when your credit report was issued, or could be the card you let the balance report on. Chase cards for instance usually report off cycle. So leaving a balance, but then paying the card off it would report as $0 when it got paid off. Which card are you using as your AZEO card?  

      


Message 2 of 13
SouthJamaica
Mega Contributor

Re: I did AZEO but FICO dropped my score claiming I have $0 debt


@patoot10 wrote:

Hello,

 

I recently did AZEO with one card having $67 balance and FICO dropped my score about 17 points for having $0 debt.

 

I understand if you have $0 debt your score will drop but why is FICO claiming I have $0 debt, please see the pictures below:

 

 

 

This is also affecting mortgage scores, not just FICO 8


When the user interface rounds down $67 in balances to zero, that doesn't affect your FICO scoring. A $67 balance is more than sufficient to be counted as a balance. 

 

So please tell us:

 

1.  Is the card a store card?

2.  Is the card a credit union card?

3.  Is the card a Chase card?

4.  Is the card an Amex charge card?

5.  Does the card have a very large limit?

6.  How do you know the score drop is attributable to the $67 balance?


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 3 of 13
patoot10
Frequent Contributor

Re: I did AZEO but FICO dropped my score claiming I have $0 debt

The card is my synchrony paypal 2% card which is a mastercard. The card is definetly showing $67 balance and recently reported (when the score dropped and the $0 debt showed up).

 

It has a high credit limit  $10k, I think the scoring model is rounding the small balance and considering no balance.




Message 4 of 13
patoot10
Frequent Contributor

Re: I did AZEO but FICO dropped my score claiming I have $0 debt

1.  Is the card a store card?

no this is a paypal 2% mastercard

2.  Is the card a credit union card?

no

3.  Is the card a Chase card?

no

4.  Is the card an Amex charge card?

no

5.  Does the card have a very large limit?

yes 10k

6.  How do you know the score drop is attributable to the $67 balance?

yes score was 17 points more and the card had $250 balance, once it reported $67 the score went down and started seeing the code reason of no recent credit card usage




Message 5 of 13
OmarGB9
Community Leader
Super Contributor

Re: I did AZEO but FICO dropped my score claiming I have $0 debt


@patoot10 wrote:

The card is my synchrony paypal 2% card which is a mastercard. The card is definetly showing $67 balance and recently reported (when the score dropped and the $0 debt showed up).

 

It has a high credit limit  $10k, I think the scoring model is rounding the small balance and considering no balance.


Yea it might be rounding down to zero/truncating the decimals, since $67/$10,000 = 0.67% which is less than 1%.


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 6 of 13
SouthJamaica
Mega Contributor

Re: I did AZEO but FICO dropped my score claiming I have $0 debt


@patoot10 wrote:

The card is my synchrony paypal 2% card which is a mastercard. The card is definetly showing $67 balance and recently reported (when the score dropped and the $0 debt showed up).

 

It has a high credit limit  $10k, I think the scoring model is rounding the small balance and considering no balance.


I can't think of a reason that would not count as a reporting balance for AZEO. Perhaps there's something else that caused the score drop?


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 7 of 13
GatoradeZeroGuy
Valued Contributor

Re: I did AZEO but FICO dropped my score claiming I have $0 debt

consider pulling your exp report from here: https://www.annualcreditreport.com/ and seeing what it says for this month as opposed to the exp website. 

Starting FICO 8:

Current FICO 8:

3/6, 5/12, 14/24

Message 8 of 13
OmarR
Established Contributor

Re: I did AZEO but FICO dropped my score claiming I have $0 debt

I currently use my Paypal MC for AZEO, reporting $1, and it will show as 1% useage.

 

I'm going to go with @GatoradeZeroGuy and suspect that what you're seeing is not updated properly.

 EQ=850   EX=845   TU=843       0/24       UTIL=$1    AZEO

Message 9 of 13
GatoradeZeroGuy
Valued Contributor

Re: I did AZEO but FICO dropped my score claiming I have $0 debt


@OmarR wrote:

I currently use my Paypal MC for AZEO, reporting $1, and it will show as 1% useage.

 

I'm going to go with @GatoradeZeroGuy and suspect that what you're seeing is not updated properly.


exp has the coolest tech of the 3 CRAs, but they should all be forced to do the TU thing and allow a daily free pull of their full report.

Starting FICO 8:

Current FICO 8:

3/6, 5/12, 14/24

Message 10 of 13
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