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Question about the AZEO method. Help!

Question about the AZEO method. Help!

Hello all, so im new to CCs and my ruibuilding. Ive been a bit confused about how to properly pay off my CC balances (specific dates) so that i can maximize my FICO scores by keeping my UTlZ % as low as possible. Maybe you wonderful people with your awesome knowledge could help!

So lets suppose my (due date) is on every 9th of the month. And my statement cycle date is on the 12th. Also supposing i want to show a 0$ balance on this card. What balance gets reported to my credit bureau?

What is shown on my due date statement? or What ever balance remained on my account by my statement cycle date?

A bit confused and hoping someone can “dummyfie” this for me lol

Thanks in advance!
Message 1 of 8
7 REPLIES
Valued Contributor

Re: Question about the AZEO method. Help!

Most lenders report the Statement balance to the CRAs, one known exception is US Bank who reports the balance at the end of the month (if memory serves). Another known exception is Chase who not only report the statement balance, will also report mid cycle whenever the balance is paid to $0.
Message 2 of 8
Community Leader
Senior Contributor

Re: Question about the AZEO method. Help!

The due date is important when you have a positive statement balance. Always pay your statement balance in full by the due date to avoid interest.

 

For AZEO — or for partial control over the balances that report — you'll want to bring your balances down to your desired amounts at reporting time. Using your example of a card whose statement cuts on the 12th, pay your current balance to your desired amount so payment posts by the 11th.

 

I'm not sure if US Bank reports on the last of the month or the first. If you have one of their cards, I'd have my balance in check by the second last day of the month, then not use the card until the 2nd.

 

Chase gives you a lot of leeway. If you want to charge something at statement time, you'll know that you can do it without dinging your score for a month. You'd simply pay your current balance to zero at your convenience, and your report will update with the zero balance.

 

Note that if all cards report zero, your score is dinged pretty noticeably. Because Chase's practice of reporting zero, many suggest not using a Chase card as your positive balance card. On the other side of the coin, Chase will report whenever you ask them to. If you'd like, you can bring your card's balance to $5 or so and ask them to report it.

 

If you have a Discover card, they'll also report whenever you request it.

Message 3 of 8
Valued Contributor

Re: Question about the AZEO method. Help!

@ABCD123 has a great post on it. 

 

In a nut shell, all card balances should be $0 at statement date with exception to 1 card. That card should be 8.9% or lower. That means you want to have all your card balances PIF on the 11th of the month and one card at $44 (assuming a $500 CL). 


9/16/17 FICO 9 TU-661 EQ-648 EX-607
12/27/17 FICO9 TU-706 EQ-672 EX-690
3/16/18 FICO9 TU-700 EQ-669 EX-716
6/26/18 FICO9 TU-750, EQ-672, EX-789


Message 4 of 8
Valued Contributor

Re: Question about the AZEO method. Help!

Op, this is a great question to ask early on before you get deep into it. Several years back when I first started using cards I had the same question and felt a bit out of place because I wasn't sure at all.

The one thing I wanted to add was here and there you may find a lender that will randomly report multiple times enough. It is more rare than common, but it does happen. Nothing you should be too concerned with now. I think you're asking the right questions to get moving ahead.
                                 

Total Credit: $218,900Credit Utilization: 1%AAoA: 5 years, 5 monthsInstallments: Car Lease, Marcus LoanNegatives: 0


                                                                                              
                      DSC-27.1K | NFC-25K | ALI-25k | WAL-10k | BoA-22k | BB-12k | NFL-15k | LOW-35k | AMX-19.3k | CHA-10k | PF-8.8k | C-DC-9.7k
Message 5 of 8
Super Contributor

Re: Question about the AZEO method. Help!

OP can you clarify something.

Are you rebuilding from a series of bad credit issues, lates, collections, charge offs,  potential bankruptcy?

Or are you starting new with credit, these are your first credit cards ever?

Do you know your FICO 8 ( credit card-related ) credit score?

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812

Delta Reserve and CSP Jan 2018, no more 5/24 worries... unless new Chase Marriott/SPG replacement is enticing...meh, turns out not. [unless a 100k points SPG Luxury Upgrade appears... well lookie here...]
Message 6 of 8
Super Contributor

Re: Question about the AZEO method. Help!


@luna_scout123 wrote:
Hello all, so im new to CCs and my ruibuilding. Ive been a bit confused about how to properly pay off my CC balances (specific dates) so that i can maximize my FICO scores by keeping my UTlZ % as low as possible. Maybe you wonderful people with your awesome knowledge could help!

So lets suppose my (due date) is on every 9th of the month. And my statement cycle date is on the 12th. Also supposing i want to show a 0$ balance on this card. What balance gets reported to my credit bureau?

What is shown on my due date statement? or What ever balance remained on my account by my statement cycle date?

A bit confused and hoping someone can “dummyfie” this for me lol

Thanks in advance!

It depends on the lender. You have to know which date's balance
is reported by the lender. If you want it to report zero, it has to be paid
off before the reporting date. Most lenders report the statement balance,
but as others have pointed out, not all. The exceptions with which I am
familiar: Vantage West which reports the balance as of the 5th of the month;
Digital which reports the balance as of the 1st of the month;
and Chase, which does report the statement balance, but also reports zero balances
which appear during the month.


FICO8 EQ 755 TU 776 EX 746 Total revolving limits 643900 (533900 reporting)
Message 7 of 8
Community Leader
Super Contributor

Re: Question about the AZEO method. Help!




@SouthJamaica wrote:

Most lenders report the statement balance,

but as others have pointed out, not all. The exceptions with which I am
familiar: Vantage West which reports the balance as of the 5th of the month;
Digital which reports the balance as of the 1st of the month;
and Chase, which does report the statement balance, but also reports zero balances
which appear during the month.


Also US Bank, which reports one's current balance as of the last day of the month.  (I have alternatively heard the 1st of the month, which is almost the same.)

Message 8 of 8