Lost -20 pts for high utilization... will I get those points back when PIF (AZEO)?

[Anonymous]

Currently having fits with the MyFico notifications, FICO 8's dropping big time. So far, almost all scores have dropped about 20pts each CRA due to high utilization and balances being reported on all but 1 card.

My question is that will I get those points back when I pay all the cards off? I still plan to AZEO, but this month, I needed to carry balances for another week or two.

After all the work that I've done rebuilding since my DC in October, watching these scores all drop day after day is seriously making me want to cry.

I can't even imagine what it's going to do to my FICO 9 scores... 😭

[HeavenOhio]

You'll be fine. A utilization "lapse" has no long term effect, and it doesn't interfere with building. You'll get points back as lower balances report. If you reach the same balances you had previously, your scores should rebound to exactly where they started. If you weren't at AZEO previously and reach AZEO this time around, you may see a net gain.

[Anonymous]

AZEO works but, the card you leave a balance on makes a HUGE difference.

It has to be a major bankcard... some say don't use Chase because when you $0 them out they report the $0 balance within 24 hours.

Is there a reason you're wanting to do AZEO?  Auto or Mortgage in the near future?

It's easier to just set a mental limit of 10% of your balance as your budget and then setup auto pay for the statement balance.  You still get the points for payments each month and generating activity on the account.  I've done this with some 4K / 10K cards and within 2 years managed to exceed 50K CL's with them.  It doesn't take much effort.  It's more about being patient and being able to wait them out.

I would SD the store cards and focus on the Disco, NFCU, Cap1, Toyota cards for the biggest bang for your buck.  The store cards are just fluff when it comes to the bigger picture.  Disco / Cap1 would be my targets though if using the AZEO method... Disco will grow more than Cap1 since Cap1 is bucketed and will probably top out at $2K even after 10 years of use.  The only way to get higher than that with them is when your scores are higher and you apply for a new card with them.

[Anonymous]

---

@Anonymous wrote:

It's easier to just set a mental limit of 10% of your balance as your budget and then setup auto pay for the statement balance. 

---

Can you elaborate a bit on what you mean by the above, as I've never seen that exact advice given before. 

OP, as others have suggested already, your scores will bounce back fine.  If your scores drop X points due to taking your utilization to a worse place, your scores will gain X points back when you return your [reported] utilization to its original state.

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

It's easier to just set a mental limit of 10% of your balance as your budget and then setup auto pay for the statement balance. 

---

Can you elaborate a bit on what you mean by the above, as I've never seen that exact advice given before. 

---

It's just simple math rather than 8.9% to figure out off the top of your head.  10% of 15K is $1500.... 8.9% takes more thought to figure out when planning a purchase.

[SouthJamaica]

---

@Anonymous wrote:
Currently having fits with the MyFico notifications, FICO 8's dropping big time. So far, almost all scores have dropped about 20pts each CRA due to high utilization and balances being reported on all but 1 card.

My question is that will I get those points back when I pay all the cards off? I still plan to AZEO, but this month, I needed to carry balances for another week or two.

After all the work that I've done rebuilding since my DC in October, watching these scores all drop day after day is seriously making me want to cry.

I can't even imagine what it's going to do to my FICO 9 scores... 😭

---

Yes you will get them right back.

[Anonymous]

Thanks so much for all of your knowledge!! It truly helps me feel a little bit better, although it is disheartening to watch these scores fall.

I was AZEO before, and I will probably continue to do so when I pay off everything (except Discover). I just feel more comfortable and financially secure not carrying balances.

I was really hoping that my NFCU card would graduate next month, but I am guessing that since these wont report PIF until AFTER my NFCU statement cuts for August that the high utilization may delay my graduation. I guess I will just be patient and wait another month with fingers crossed...

[Anonymous]

---

@Anonymous wrote:
I was AZEO before, and I will probably continue to do so when I pay off everything (except Discover). I just feel more comfortable and financially secure not carrying balances.

---

AZEO is simply one approach.  Scores are just there for when you need to apply for something new.  Existing creditors SP them just to make sure you're not an increased risk.  

Personally I just autopay the statement balance and forget about it.  I keep an eye for charges that don't mesh between Quicken downloads and Mint.com for pending charges.  I recently caught one on a Chase card through mint...someone probabaly just put the wrong CC# on their order but still reported it and got a replacement card.

The PIF method works well though too since you know not to spend more than what's in the bank.  Depends on how much energy you want to put into everything.  You can still do AZEO by moving all charges to a single card for 1-2 months before a bit purchase where you need the highest possible score for the best terms.  

[Anonymous]

You’ll bounce back quickly.
What’s good to remember is the majority of cards, all I know of except U S Bank, report on your statement date and not your due date.
So whatever your balance is at the end of the day on the day your statement comes out is what’s reported. I keep a mental note of my statement dates so I can manipulate my score with utilization. I do t want it to show 0, I want it to show that I use the card. I PIF each month but do it in between the statement date and the due date. I also don’t let it report more than 29% and haven’t seen enough difference to matter between 29% and the popular 8.9%.

[Anonymous]

---

@Anonymous wrote:

---

---

It's just simple math rather than 8.9% to figure out off the top of your head.  10% of 15K is $1500.... 8.9% takes more thought to figure out when planning a purchase.

---

I agree with what you're saying if you're talking a reported balance, but that's quite different than a purchase.  One could purchase a $7000 TV on a $15,000 credit line and then pay off $5500 of it before the statement cuts, thus allowing the $1500 remaining balance to report resulting in 10% [reported] utilization like you said above.  My point is simply that one doesn't have to limit purchases to 10% of their limit, simply their reported balance if their goal is to keep utilization in a great place.