Paying off before closing date

[Anonymous]

I have 3 cards I've had for a few years and use them frequently, some up to $700 a month, but I always pay my balance early before even the closing date so that the statement I get is always at $0. I've read conflicting things and I'm wondering if this is bad for credit since I'm never reporting a balance. One side note: even though I never report a balance amex just tripled my credit line but I'm wondering how paying off before closing affects score

[Jnbmom]

Do a search on here for AZEO

[Anonymous]

I've spent many nights researching my original question and never once stumbled upon AZEO. Thanks so much, definitely going to start doing this then instead and see how it works!

[Jnbmom]

AZEO. All zero except one.
Pay your cards off monthly and leave one reporting a small balance.

[HeavenOhio]

Welcome, @Anonymous.

If all revolvers show a balance of zero, your score will be dinged, likely to the tune of 20 points or so when compared to your AZEO score.

AZEO (all zero except one) is when you report a tiny balance on one card with the rest reporting zero. Most people will achieve their AZEO scores with overall utilization of 8.9% or below and no more than 28.9% utilization on the single card reporting the balance. Some have been dinged at less than those thresholds, however. AZEO is the safety valve when you need every point possible and don't want to be the recipient of any surprises.

That said, 28.9% is considered to be "responsible" borrowing. If cards are at 28.9% or below, your report will present a good look, and your score will probably be a bit better than all cards at zero.

[UpperNwGuy]

My approach for the last four years has been to let my balances report on the statement, and then I pay them off in full.  

I once did a comparison of my approach with AZEO and found that AZEO did not improve my score over simply paying the multiple card balances in full after the statements cut.

[Anonymous]

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@UpperNwGuy wrote:

My approach for the last four years has been to let my balances report on the statement, and then I pay them off in full.  

I once did a comparison of my approach with AZEO and found that AZEO did not improve my score over simply paying the multiple card balances in full after the statements cut.

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As long as you’re under the 50% of cards with a balance threshold and over 0% I agree with this. It’s just not worth micromanaging when FICO 8 and FICO 9 don’t care that much. If you’re going for a mortgage, it can help, but only if you’re borderline otherwise. 

[SouthJamaica]

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@Anonymous wrote:
I have 3 cards I've had for a few years and use them frequently, some up to $700 a month, but I always pay my balance early before even the closing date so that the statement I get is always at $0. I've read conflicting things and I'm wondering if this is bad for credit since I'm never reporting a balance. One side note: even though I never report a balance amex just tripled my credit line but I'm wondering how paying off before closing affects score

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Just let one report a small balance before you pay it off, and you'll pick up some points in FICO 8.