Next Best Option - Can't do AZEO

[recoveringfrombk7]

I want to put my best foot forward for some apps coming up in March (a CC - they will pull TU9) and May/June (Car - they will pull EQ9).  I am carrying a balance on a TD/NordicTrack 0% for 36 months.  I could afford to pay it off, but I am unwilling to do so given the pandemic.  I'd rather keep the cash on hand given I'm not paying interest.  It's still pretty high (76% of limit).  I will be trying to get a CLI on it to lessen the utilization.  I have 6 other cards.  What is the next best option AFTER AZEO?  Is having the one account reporting from NT better than just staying under use on 50% on my cards?  Normally I just PIF when statements cut, but I would like to look good for these two apps given the current climate.  Thanks for the help!

[RSX]

getting it under 50% will likely help your score

also, getting a lower car interest rate is more important than the CC you want in March, so i would get the car loan first, then app for the CC a week or two later

otherwise you will have a new CC acct 2-3 months for apping for the car loan  - which could raise the interest rate they give you

[recoveringfrombk7]

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@RSX wrote:

getting it under 50% will likely help your score

also, getting a lower car interest rate is more important than the CC you want in March, so i would get the car loan first, then app for the CC a week or two later

otherwise you will have a new CC acct 2-3 months for apping for the car loan  - which could raise the interest rate they give you

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I understand that paying down the financed NT equipment would help, but as I said I'm not willing to do that.  So I'm just looking for information as to whether the other cards should all be at 0, or if a small balance on less than 50% of my total cards should be fine. 

Both applications are going to be through my CU.  I want to scoop the card during the SUB period, so it will just depend as we get closer if I would be willing to delay it until after the car.

[SouthJamaica]

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@recoveringfrombk7 wrote:

I want to put my best foot forward for some apps coming up in March (a CC - they will pull TU9) and May/June (Car - they will pull EQ9).  I am carrying a balance on a TD/NordicTrack 0% for 36 months.  I could afford to pay it off, but I am unwilling to do so given the pandemic.  I'd rather keep the cash on hand given I'm not paying interest.  It's still pretty high (76% of limit).  I will be trying to get a CLI on it to lessen the utilization.  I have 6 other cards.  What is the next best option AFTER AZEO?  Is having the one account reporting from NT better than just staying under use on 50% on my cards?  Normally I just PIF when statements cut, but I would like to look good for these two apps given the current climate.  Thanks for the help!

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I'm having trouble understanding what kind of account it is. It sounds like an installment loan or consumer finance account, rather than a credit card.   If it's a revolver, you want to get the balance down to 28%.  If it's an installment loan you want to get the balance down to 9% of the original amount (assuming you have no other installment loans).

[Anonymous]

Good question from SJ above regarding the account type.  If it's not a revolver, it's still possible for OP to arrive at AZEO.

I agree with the other post above where if OP has scores that are on the fence between a better interest rate on the upcoming loan that holding out on the CC until after obtaining the loan would be the smartest financial move.  If it wouldn't matter, sure go for the CC first.

But as a very simple answer to the original question as to what is the next best option to AZEO, quite simply it would be AZE2.

[recoveringfrombk7]

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@SouthJamaica wrote:

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@recoveringfrombk7 wrote:

I want to put my best foot forward for some apps coming up in March (a CC - they will pull TU9) and May/June (Car - they will pull EQ9).  I am carrying a balance on a TD/NordicTrack 0% for 36 months.  I could afford to pay it off, but I am unwilling to do so given the pandemic.  I'd rather keep the cash on hand given I'm not paying interest.  It's still pretty high (76% of limit).  I will be trying to get a CLI on it to lessen the utilization.  I have 6 other cards.  What is the next best option AFTER AZEO?  Is having the one account reporting from NT better than just staying under use on 50% on my cards?  Normally I just PIF when statements cut, but I would like to look good for these two apps given the current climate.  Thanks for the help!

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I'm having trouble understanding what kind of account it is. It sounds like an installment loan or consumer finance account, rather than a credit card.   If it's a revolver, you want to get the balance down to 28%.  If it's an installment loan you want to get the balance down to 9% of the original amount (assuming you have no other installment loans).

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It lists as a credit card on the reports.  I do not want to pay it down though is why I'm saying I cannot do AZEO.  It's 0% financing and I'd rather hold onto the 3k cash that's left on that account.  So I'm basically asking in light of that, what is the best thing I can do?  Should I pay everything else to 0 and have that be my only balance?

[SouthJamaica]

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@recoveringfrombk7 wrote:

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@SouthJamaica wrote:

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@recoveringfrombk7 wrote:

I want to put my best foot forward for some apps coming up in March (a CC - they will pull TU9) and May/June (Car - they will pull EQ9).  I am carrying a balance on a TD/NordicTrack 0% for 36 months.  I could afford to pay it off, but I am unwilling to do so given the pandemic.  I'd rather keep the cash on hand given I'm not paying interest.  It's still pretty high (76% of limit).  I will be trying to get a CLI on it to lessen the utilization.  I have 6 other cards.  What is the next best option AFTER AZEO?  Is having the one account reporting from NT better than just staying under use on 50% on my cards?  Normally I just PIF when statements cut, but I would like to look good for these two apps given the current climate.  Thanks for the help!

---

I'm having trouble understanding what kind of account it is. It sounds like an installment loan or consumer finance account, rather than a credit card.   If it's a revolver, you want to get the balance down to 28%.  If it's an installment loan you want to get the balance down to 9% of the original amount (assuming you have no other installment loans).

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It lists as a credit card on the reports.  I do not want to pay it down though is why I'm saying I cannot do AZEO.  It's 0% financing and I'd rather hold onto the 3k cash that's left on that account.  So I'm basically asking in light of that, what is the best thing I can do?  Should I pay everything else to 0 and have that be my only balance?

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Yes. And then you would be doing AZEO.

But:  some accounts don't work as your only AZEO reporting balance. So you should conduct this experiment:

-see what your scores are with only this account reporting

-see what your scores are with a small balance reporting on one other account which is a bank card

Then you'll have your answer.

[HeavenOhio]

@recoveringfrombk7, you might want to pay the card down to 68% and hope that crossing the threshold tacks on some points.

Aside from that, you can expedite the experiment that @SouthJamaica suggests by using one of your Discover cards. They'll report upon request, so you can compare balances of $0 and say $10 in a fairly short time span.

[recoveringfrombk7]

Thank you both!

@HeavenOhio I actually called TD and took a hard pull on EX for a CLI since I have no plans to app for anything that hits EX for years.  They only did a small bump (4500 > 5500), but it did take me from ~75% to 62%, so maybe that will help.

Really appreciate everyone's help.  Trying to figure out timing on the car app vs the cc app.  We may delay the car until July (we don't strictly need the car until August), and the SUB on the card I want is typically active starting March (NFCU Flagship).  I could do the car earlier I guess, but I am working from home due to the pandemic and still making payments on my current car (giving it to my son).  I owe about 3200 as of today, but again at 0% financing/payment is 400 per month, and was also IIB so it's not like it's on my reports anyhow.  Just trying to figure out the proper timing on everything.  

[Anonymous]

Great advice above. You may or may not take a penalty for not having a bankcard report a balance. Plus you want to look and see what it does on version 9.

Either you’re best with only it reporting a balance, or with it and one bankcard reporting a balance. Test it and see and getting under 69.5% is a great recommendation since you don’t want to pay it off, at least get under that threshold.

Coincidentally since they are going to be pulling version 9, isn’t there typically an increase in score for going to a new account scorecard just like there is a drop for going to a no new accounts scorecard in 9? Just the opposite of version 8 typically.

obviously it’s profile dependent, but you might actually get a boost if you don’t have a revolver under a year and you grab the revolver since they’re going to pull 9. Thoughts everyone?