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Types of credit cards for AZEO

Community Leader
Valued Contributor

Re: Types of credit cards for AZEO

Maximizing one's score seems to work differently with different profiles. And what happens with AUs is a crapshoot. That's why, for true AZEO, it's best to suggest the safest possible route, including a very low balance rather than just squeaking in based on scoring data points.

 

Once you've implemented AZEO in the most anal way possible, you can mess around a bit with HELOCs, store cards, AUs, letting larger balances report, etc. If you see no scoring change, you're fine. Or if you see a dip that you find to be acceptable, that's fine too.

Message 11 of 22
Moderator

Re: Types of credit cards for AZEO


Benmarkley3 wrote:

Mrsjnt wrote:
A few questions that I hope I can get clarification on. Is it strictly credit cards such as Visa, MC that count for the suggested 3 credit cards? Or do cards such as the military star card count? Also, does being an authorized user count for this purpose, or would I need my own card? Lastly, do secured cards count as well? I’m beginning to get serious about building my credit, to one day buy a house. Currently, I am an authorized user on my husbands CC, and have student loans that are in deferment since I’m still in school.
Thank you!


It is any revolving account. I know that because I have two credit cards and one overdraft account. The AZERO technique is with any revolvers. Credit card, charge card, overdraft, HELLOC accounts. As long as it’s a revolving account, And not an installment it counts.  So AU credit card accounts count. I hope that helps.


Not quite correct; Charge cards do not on FICO 04 onwards, HELOC's also do not under FICO 04, 8/9 (TU FICO 4 might be an exception to that).  Not all AU accounts factor either under FICO 8 / 9.  PLOC's are weird under FICO 9 too.

  

Safety bear style: put it on a national bank card, secured is fine

 

Not store / retail card

Not an AU

Not an Amex if you have any doubt as to what type of card you have explicitly.

Definitely not a charge card or HELOC.

 

When you have to get pretty there's zero reason to take a chance on something squirrley happening to your score.

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/All-revolvers-zero-testing-HELOC-Amex-cha...

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)


Take the myFICO Fitness Challenge
Message 12 of 22
New Contributor

Re: Types of credit cards for AZEO


Revelate wrote:

Benmarkley3 wrote:

Mrsjnt wrote:
A few questions that I hope I can get clarification on. Is it strictly credit cards such as Visa, MC that count for the suggested 3 credit cards? Or do cards such as the military star card count? Also, does being an authorized user count for this purpose, or would I need my own card? Lastly, do secured cards count as well? I’m beginning to get serious about building my credit, to one day buy a house. Currently, I am an authorized user on my husbands CC, and have student loans that are in deferment since I’m still in school.
Thank you!


It is any revolving account. I know that because I have two credit cards and one overdraft account. The AZERO technique is with any revolvers. Credit card, charge card, overdraft, HELLOC accounts. As long as it’s a revolving account, And not an installment it counts.  So AU credit card accounts count. I hope that helps.


Not quite correct; Charge cards do not on FICO 04 onwards, HELOC's also do not under FICO 04, 8/9 (TU FICO 4 might be an exception to that).  Not all AU accounts factor either under FICO 8 / 9.  PLOC's are weird under FICO 9 too.

  

Safety bear style: put it on a national bank card, secured is fine

 

Not store / retail card

Not an AU

Not an Amex if you have any doubt as to what type of card you have explicitly.

Definitely not a charge card or HELOC.

 

When you have to get pretty there's zero reason to take a chance on something squirrley happening to your score.

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/All-revolvers-zero-testing-HELOC-Amex-cha...


Just to confirm, my wife currently is in the rebuilding stage.  She has a Discover secured card, Cap 1 Plat, and a First Premiere card (yes I know).  She is also an authorized user of my Walmart and Bestbuy card.  If we pay off her credit cards and left a balance on the Bestbuy card, would she get dinged for not having a balance on her own credit card?  Or would it be best if I paid off the Bestbuy card too and leave a small balance on her own credit card?  Don't really want to pay off Bestbuy yet since it's a 0% interest promo with a utility percentage of 20%.  It seems like there are conflicting statements about this issue.  I hope someone can chime and confirm this issue.  Thank you in advance.  

Message 13 of 22
Community Leader
Valued Contributor

Re: Types of credit cards for AZEO

The safest thing would be for each of you to leave a small balance on one of your Visa/MC/Discover/AMEX revolvers and to have any cards with AUs reporting zero.

Message 14 of 22
New Contributor

Re: Types of credit cards for AZEO


HeavenOhio wrote:

The safest thing would be for each of you to leave a small balance on one of your Visa/MC/Discover/AMEX revolvers and to have any cards with AUs reporting zero.

 


Thank you for the quick reply.  That's what I thought too after reading other posts on the AZEO method until I read this thread. 

Message 15 of 22
Super Contributor

Re: Types of credit cards for AZEO


HeavenOhio wrote:

 

 

And as mentioned above, if you have Chase cards, it's best to plan on keeping their balances at zero. They report your statement balance, but they also report zero whenever you pay to zero. While it's possible to continuously report a positive balance on a Chase card without paying interest, doing it is a little more complicated than on cards from other banks.


My Freedom card is set up to autopay “statement balance in full on the due date”. As long as I keep using the card during the month, there is something in the queue that will be a balance, after autopay takes care of the last statement balance. If I don’t use the card, it will go to zero at that payment date, but autopay is quite easy to allow no-interest, grace period balances to report on such an active Chase card. 

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.
Message 16 of 22
Community Leader
Valued Contributor

Re: Types of credit cards for AZEO

Makes sense. The trick is that if you want a Chase card to report continuously a positive balance, never pay it to zero. Allow a charge to post, then pay the statement balance in full. You can do that as soon as a charge posts, wait until the due date, or do it anytime in between. As long as the statement balance is paid in full by the due date, there won't be interest.

 

It's not that hard, but if people ask, it's much simpler to suggest that they use something other than a Chase card for their positive balance. Besides, it's so easy to get a Chase card to report zero that one may as well take advantage of it. Smiley Happy

Message 17 of 22
Valued Member

Re: Types of credit cards for AZEO

I'm an AU on an account which reports a balance every month (under 8%). In addition, I always have at least one, sometimes 2-3 cards report a small balance under $100 and my score remains maxed out. I have a total of 8 revolving card accounts and an AU on 2 more. I'm wondering if in my case, FICO is overlooking AZEO due to some other factor(s)? 

 

 

 

EX 850
TU 850
EQ 841
Message 18 of 22
Community Leader
Valued Contributor

Re: Types of credit cards for AZEO

Some profiles allow for more flexibility than others. Consider yourself fortunate. Smiley Happy

 

The idea behind AZEO is that it's a formula that anyone can apply. For some, it's necessary to reach one's optimum score; for others, it's not. When people need the biggest possible score bump, they should be given the safest possible advice rather than being told that they can probably get away with doing this or that. They can try the "this and that" stuff at a point after they've gotten their AZEO score and scoring isn't critical.

Message 19 of 22
Valued Contributor

Re: Types of credit cards for AZEO

I wasn't on the board much for a few months. I got back on more last week and kept seeing AZEO popping up. I kept thinking.. what the heck is AZEO? So I searched and found that the method we'd been talking about for awhile and my normal way of life before I took advantage of a couple of 0% offers now has an acronym.  It works!  I've done some testing and have found that some CBs are more sensitive to more than one  cc account posting than others. My TU score seems bullet proof to a point. I've had multiple accounts reporting and that score didn't move. My EQ score moves around a few points when a few cards report. I don't watch EX as much but I don't see a lot of changes in that one. 

 

AZEO isn't hard to do. I know when all of my statements close and make sure the cards are paid to zero before that happens (except for two now - 0% with healthy balances). I stop using a card about a week before the statement is going to close so there is enough time for the balance to post and then for me to pay it off before the closing date.  I once accidently let all of my cards report $0. One report lost 16 points so it's not good to do that. 

Cap 1 - $23,000 / Lowe’s - $17,000 / Barclay Rewards - $15,000 / Capital 1 - $15,000 / Walmart - $15,000
Cap 1 - $12,000 / PenFed - $10,000 / JC Penney - $10,000 / Discover IT - $6500 / Barclay Apple Rewards - $5400
Merrick - $2400 - Total - $131,300

EQ - 745 / TU - 741 / EX - 742
Message 20 of 22