Is it at literal as it sounds, do the Utils have to be literally zero? If I have a couple of cards with $50-$100 on them (CLs $8,000/$15,000) from some random recurring subscription service, will it make a difference to take them down to zero?
Only if you plan on applying for something like a mortgage. Your util is very low, but It would make a significant difference in the number of cards reporting a balance to which mortgage scores, in particular, are sensitive. Otherwise, for routine credit apps, no, you don't need AZEO.
You may see a couple of points on FICO8, 9 from implementing AZEO but not enough to warrant the hassle, imo. You'd have to do it to determine for yourself if it's worth it.
That said, if more than 50% of your cards report a balance, you may want to zero out a few to keep that percentage under 30 as the penalty on F8, F9 could be more significant when approaching or exceeding 50%. But again, you'd have to test your own profile to see what's comfortable.
Interesting, makes sense actually. My mortgage scores seem a good 30-35 points lower than everything else, and I never really understood why. I'll zero everything out except the one and see what kind of difference it makes!
@SDMarik wrote:Interesting, makes sense actually. My mortgage scores seem a good 30-35 points lower than everything else, and I never really understood why. I'll zero everything out except the one and see what kind of difference it makes!
K.
Just an FYI: Your Amex Plat cannot be the one with a balance tho because it's a charge... revolvers only.
Oh for sure, I never carry a balance on the platinum, usually pay that 2-3x per month.