Proper steps to maximize my credit score

[AllZero]

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@manateemark wrote:

This was the term that I was looking for. "All zero except one." I will start doing this as I had been keeping very small amounts due at statement time previously.

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Common Abbreviations

[Anonymous]

AZEO. It is magical not just because it is a good way to optimize your score, it is simply GREAT CREDIT PRACTICE.

People find it confusing, and I know I did when i first learned about it. Do I pay everything in full except one card? Do PIF on the due dates? etc etc.

Easy AZEO method rules (to reiterate Firemedic above):

1. You will ALWAYS Pay ALL in Full, it's just about the timing. 
2. You want to "work" the CR system with the knowledge that most CCs report to the 3 CBs on your statement cut date, or report your balance AS OF THAT STATEMENT CUT DATE.
3. So PIF to ZERO two cards before their statements cut (that's why mobile apps are so useful, you can easily track this)
4. Pay down third card to 8.9% of your limit (e.g., $500 limit = $44 you can leave on that card for the statement to cut). One strategy is to use the card with the largest credit line, so that 8.9% comes out to a larger amount (be sure you can pay for it tho)
5. Third card cuts at 8.9%
6. Then guess what? Pay 3rd card in Full.
7. Rinse. Repeat next month.

I feel it's helpful for me to retype this for myself, as for others. I hope it's helpful to you. Good luck!!

[909]

OP,  you're doing well. You're in college, paying attention and have a good plan. Well done. While managing your debt closely is critical to building wealth, AZEO is really unimportant unless you have to maximize your credit score, esp. your mortgage score. But frankly, given your attention and plan you won't be someone who has to pull out all the stops to bump up your score. It sounds like you'll manage your money and your credit well and in short order will have a solid 760  - 800+ score and things like AZEO will be meaningless.

Keep up the good work. Fly right, keep your debt under control (as in less than a few percent of your CL) and don't sweat the little things like AZEO.