What are the Benefits Of The AZEO Method??

[The-Credit-Disciple]

Great Morning Fico Fam 

What are The benefits of The AZEO Method?

What does it help Achieve?

What does it do to help your Scores?

What does it do to help with Loan applications(Car Loans, Mortgage, Personal Loans)?

What does it do to help with Credit Card Apps?

reason I am asking is because it seems like a great method and I would like to try it, but I would Love to hear your feedback Fico Fam from your experiences if you have used this method Thanks Fico Fam in advance

[ChessChik47]

Hi OP!  This topic has been discussed thoroughly in the forums.  Just do a quick search and I promise  you all your questions will be answered.  Bottom line, it's a good method to use if you're looking to maximize your FICO score prior to applying for a new credit account (card, loan, etc.).  If you're not seeking new credit, just use your cards "naturally", pay your bills after your statements cut and before the due date, then rinse and repeat.

[Anonymous]

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@ChessChik47 wrote:

Hi OP!  This topic has been discussed thoroughly in the forums.  Just do a quick search and I promise  you all your questions will be answered.  Bottom line, it's a good method to use if you're looking to maximize your FICO score prior to applying for a new credit account (card, loan, etc.).  If you're not seeking new credit, just use your cards "naturally", pay your bills after your statements cut and before the due date, then rinse and repeat.

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This.    AZEO and similar micromanaging can have its place if you absolutely need to maximize your score for an app  (and even if you ARE apping, you often don't really need to do this, if your score is already way above a threshold).

What is often lost by the AZEO "cult" here is that it comes at a price.    In return for all the swipe fees, and interest charges from those that don't pay in full every month, the nice Credit Card issuers basically give you a free loan:  you make all those charges, we will pay the merchant (minus our very reasonable fee), and you don't need to pay us back until the due date.    As due dates are usually at least 20 days after closing, if you make a charge at the very beginning of the new cycle, you are getting an interest free loan for nearly two months.

AZEO loses some of this every month, causing you to give up some of this free money (leave it in an interest paying account until near the due date).    It might be worth it for those very special apps.   But almost certainly not every card, every month.

[Anonymous]

Cost of AZEO aside, let's look at the merit of AZEO, imagine you're a credit analyst/loan officer looking at 2 profiles with the same amount of installment loans/CCs and 100% payment history and you have no clue what an AZEO is, 1st profile has a score of 760 and 1 out of 8 CC reporting a balance of $5 with the rest $0, 2nd profile has a score of 754 with balance on 6 out of 8 cards and an aggregate UTI < 8.9%.

Which one would you think is using their credit, and using it responsibly? Which one are you more likely to grant new or additional credit?

[Anonymous]

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@Anonymous wrote:

Cost of AZEO aside, let's look at the merit of AZEO, imagine you're a credit analyst/loan officer looking at 2 profiles with the same amount of installment loans/CCs and 100% payment history and you have no clue what an AZEO is, 1st profile has a score of 760 and 1 out of 8 CC reporting a balance of $5 with the rest $0, 2nd profile has a score of 754 with balance on 6 out of 8 cards and an aggregate UTI < 8.9%.

Which one would you think is using their credit, and using it responsibly? Which one are you more likely to grant new or additional credit?

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The second profile because it shows that the consumer is more likely to be profitable than the first. The consumer of the second profile is very responsible with his or her credit while actually using it.

[arkane]

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@Anonymous wrote:

Cost of AZEO aside, let's look at the merit of AZEO, imagine you're a credit analyst/loan officer looking at 2 profiles with the same amount of installment loans/CCs and 100% payment history and you have no clue what an AZEO is, 1st profile has a score of 760 and 1 out of 8 CC reporting a balance of $5 with the rest $0, 2nd profile has a score of 754 with balance on 6 out of 8 cards and an aggregate UTI < 8.9%.

Which one would you think is using their credit, and using it responsibly? Which one are you more likely to grant new or additional credit?

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Plot twist: Said analyst works for Barclays, so the answer is the first profile.

Jokes aside, I'm going to see in about a week what my scores look like with 4/4 cards reporting. I probably wouldn't apply for new cards with 4/4, but so far the difference between 3/4 and AZEO has only been one point on EQ and TU, so I'm not gonna bother with AZEO going forward. I'm actually leaning towards applying with 3/4 reporting, but of course making sure total util is <8.9% (and maybe even keep individual util <8.9% as well) for precisely the scenario you described.

[Miner]

For me, AZEO gains me 11 pts on TU, but does little on the other two. I know because I came off it last month by accident and just went back on. But other profiles score changes can vary a lot.

I care only because my scores are borderline for some things and I want to increase my chances for credit line increases, qualify for some pre-approvals as I'm trying to add some of the better credit cards, and as a moral booster as it makes my scores less depressing.

But in a few months after my remaining negatives fall off and I finish a mini CC app spree in celebration, I doubt I'll care anymore until I get ready to app for something.

For people who impulsively app at credit offers, they would have more incentive to follow it religiously.

[Anonymous]

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@AnonymousCost of AZEO aside, let's look at the merit of AZEO, imagine you're a credit analyst/loan officer looking at 2 profiles with the same amount of installment loans/CCs and 100% payment history and you have no clue what an AZEO is, 1st profile has a score of 760 and 1 out of 8 CC reporting a balance of $5 with the rest $0, 2nd profile has a score of 754 with balance on 6 out of 8 cards and an aggregate UTI < 8.9%.

Which one would you think is using their credit, and using it responsibly? Which one are you more likely to grant new or additional credit?

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While I certainly get your point above, I'd say there isn't enough information there to really say.  For example, if someone has very high credit limits and is at < 8.9% utilization, they can still have thousands or even tens of thousands of dollars in revolving debt.  In this example I would say the person with a single $5 balance presents less of a real world risk upon a MR when on paper both individuals may possess nearly identical profiles/scores.

[SouthJamaica]

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@The-Credit-Disciple wrote:

Great Morning Fico Fam 

What are The benefits of The AZEO Method?

What does it help Achieve?

What does it do to help your Scores?

What does it do to help with Loan applications(Car Loans, Mortgage, Personal Loans)?

What does it do to help with Credit Card Apps?

reason I am asking is because it seems like a great method and I would like to try it, but I would Love to hear your feedback Fico Fam from your experiences if you have used this method Thanks Fico Fam in advance

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IMHO its only real benefit is that it's an insurance policy.

The one thing you know, if all but one of your revolving accounts are reporting a zero balance, and the one card is reporting a small balance, is that you're not shooting yourself in the foot in some FICO scoring model.

[Anonymous]

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@Anonymous wrote:

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@AnonymousCost of AZEO aside, let's look at the merit of AZEO, imagine you're a credit analyst/loan officer looking at 2 profiles with the same amount of installment loans/CCs and 100% payment history and you have no clue what an AZEO is, 1st profile has a score of 760 and 1 out of 8 CC reporting a balance of $5 with the rest $0, 2nd profile has a score of 754 with balance on 6 out of 8 cards and an aggregate UTI < 8.9%.

Which one would you think is using their credit, and using it responsibly? Which one are you more likely to grant new or additional credit?

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While I certainly get your point above, I'd say there isn't enough information there to really say.  For example, if someone has very high credit limits and is at < 8.9% utilization, they can still have thousands or even tens of thousands of dollars in revolving debt.  In this example I would say the person with a single $5 balance presents less of a real world risk upon a MR when on paper both individuals may possess nearly identical profiles/scores.

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I see your point but why would you grant someone more credit who uses only $5 out of $100k+ total limit? I would still look favorably to the profile that has a long history and the ability to pay that $10k revolving debt in full every month.