@Anonymous wrote:I'm not sure AZEO produces any real benefit at all with strong profiles. Once you get to that point, there is no point in caring about reporting that way.
Your post conflates 2 entirely different concepts. AZEO (one account with balance) and SZEO (several accounts with balances). Both of those are totally ok and do not result in a penalty. The only reason anyone ever suggested AZEO is just to make sure that you don't have too many accounts with balances for the older FICO scoring models. In the older scoring models it is sometimes possible in some profiles for just a few accounts with balances to be determined by the algorithm to be 'too many'.
The difference between 1 account with balance and several accounts with balances is usually either small or nonexistent.
But the difference between some account or accounts with balance and ALL ZERO is drastic; most people report losing 15-25 points in FICO 8 when only zeroes report. The existence of this phenomenon, irrational as it may be, is so widespread and well known, it is not open to dispute.
@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:I'm not sure AZEO produces any real benefit at all with strong profiles. Once you get to that point, there is no point in caring about reporting that way.
Your post conflates 2 entirely different concepts. AZEO (one account with balance) and SZEO (several accounts with balances). Both of those are totally ok and do not result in a penalty. The only reason anyone ever suggested AZEO is just to make sure that you don't have too many accounts with balances for the older FICO scoring models. In the older scoring models it is sometimes possible in some profiles for just a few accounts with balances to be determined by the algorithm to be 'too many'.
The difference between 1 account with balance and several accounts with balances is usually either small or nonexistent.
But the difference between some account or accounts with balance and ALL ZERO is drastic; most people report losing 15-25 points in FICO 8 when only zeroes report. The existence of this phenomenon, irrational as it may be, is so widespread and well known, it is not open to dispute.
For me, AZEO is not going to make a difference if I apply for credit.
Not sure how many points I'd lose if I did all zero. I would never attempt that anyway. I report a balance on all cards every month, except for Lowe's.
Long term use of AZEO may not be good for the CRs. It shows up to other lenders that their cards don't appear to be used.
But for the short term and a thinner or weaker profile, I can improve the scores in older models, and might help with being approved for a loan or improve the terms of a loan.
So I'm just saying, especially for me, AZEO isn't going to matter.
A number of people have said things like that in this forum, but I have never -- in 5 years on this forum -- seen anyone produce any evidence of that. IMHO it's just not so.
@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:I'm not sure AZEO produces any real benefit at all with strong profiles. Once you get to that point, there is no point in caring about reporting that way.
Your post conflates 2 entirely different concepts. AZEO (one account with balance) and SZEO (several accounts with balances). Both of those are totally ok and do not result in a penalty. The only reason anyone ever suggested AZEO is just to make sure that you don't have too many accounts with balances for the older FICO scoring models. In the older scoring models it is sometimes possible in some profiles for just a few accounts with balances to be determined by the algorithm to be 'too many'.
The difference between 1 account with balance and several accounts with balances is usually either small or nonexistent.
But the difference between some account or accounts with balance and ALL ZERO is drastic; most people report losing 15-25 points in FICO 8 when only zeroes report. The existence of this phenomenon, irrational as it may be, is so widespread and well known, it is not open to dispute.
For me, AZEO is not going to make a difference if I apply for credit.
Not sure how many points I'd lose if I did all zero. I would never attempt that anyway. I report a balance on all cards every month, except for Lowe's.
Long term use of AZEO may not be good for the CRs. It shows up to other lenders that their cards don't appear to be used.
But for the short term and a thinner or weaker profile, I can improve the scores in older models, and might help with being approved for a loan or improve the terms of a loan.
So I'm just saying, especially for me, AZEO isn't going to matter.
A number of people have said things like that in this forum, but I have never -- in 5 years on this forum -- seen anyone produce any evidence of that. IMHO it's just not so.
There were 2, in another post, who have gotten AA, and one of the reasons was something along the lines of "lack of use with other credit card lines". Not sure if Capital One was doing it or synchrony or someone else.
Issuers look at other issuer's credit card usage, and of course notice when they go up quickly. So they are aware of what's happening on other cards.
Yes but the credit report data shows, in multiple ways, whether an account has been used during a cycle. The balance does not show that.
Not all issuer's report use if you pay before statement cuts. That is a FACT. There's nothing to dispute.
Unless another lender contacts that creditor. There's absolutely no way anyone besides the company who's card you used, knows you used it.
AZEO IMHO is only good for those planning a large purchase, such as a home.
Other than that, it's pretty useless.
In the long run, I see no benefits.
Sooner or later if an AZEO'r plays the game. They will run into a creditor, that will question their weak CC usage.
Inflated scores do not guarantee approvals.
@Anonymous wrote:
@Gmood1 wrote:Not all issuer's report use if you pay before statement cuts. That is a FACT. There's nothing to dispute.
Unless another lender contacts that creditor. There's absolutely no way anyone besides the company who's card you used, knows you used it.
AZEO IMHO is only good for those planning a large purchase, such as a home.
Other than that, it's pretty useless.
In the long run, I see no benefits.
Sooner or later if an AZEO'r plays the game. They will run into a creditor, that will question their weak CC usage.
Inflated scores do not guarantee approvals.
Agreed. And my point was if you have a strong profile, it's not going to make much difference or any difference at all in getting a loan. If I say I'm going to use AZEO next month to help me land a mortgage or get a mortgage at a better rate, I don't think it will amount to diddly squat.
@Anonymous
I agree!
I've ran across enough lenders now.
That I'm pretty sure AZEO makes zero difference for those with a diverse and well documented payment history.