I have searched this board to identify a singular thread that nails down the personal experience of members who follow the AZERO but ONE credit card utilization balance strategy Unfortunately, I have not found any expansive explanation behind who came up with this strategy, how to best implement it, and its success rate among credit card holders.
To my understanding, the gist of the AZERO but ONE strategy is to zero out the balance on all credit cards in one's profile, but carry a balance on one. I do hope I have this right, because I am trying to take put it into practice (along with great payment history and credit limits) to reach the 800+ club.
What I am not sure about are the following:
Does the balance of the one card have a carry a statement balance (will incur an interest for non-zero APR card)? Does the balance of the one card have to carry a current card balance (money spent to-date) at the end of the closing date? Does the balance of the one card have to be < 30 %?
I utilize the spreadsheet from the following site to play around with the card balances - Card Utilization Calculator. Ideally, I like to keep my card utilization between 7%-10% max. However, when I average out all my cards in the calculator, the total utilization rate naturally comes to less than %1. At that point, I am not sure if having < 1% is considered to be so negligible to the Fico scoring system that it makes it appear that I really don't utilize my cards at all.
As an experiment, I plan on carrying a 30% current balance on one of my cards for one billing cycle, out of 7 cards, which will bring my total utilization ratio to about 7%.
That said, does anyone have any experience or insight to this approach they are willing to share?
I missed a payment for a federal student loan and about a week and a half ago, it hit 7 years. Isn't it supposed to just fall off? When will that actually happen? Do I have to do something to make it fall off?
Thanks for your help!
I recently received a "score" in a letter from a financial institution. The letter revealed that the data was Equifax, but made no mention of the model, just that "Scores range from a low of 501 to a high of 990." That's an awfully high top end, could this be Vantage 4?
Of the five adverse factors listed, three were of the dunning "How dare you use your credit cards!" type, including the fact that I have too many of them. Then I got "No real estate accounts with a valid credit amount." No I don't have a mortgage; I busted my hump for 35 years to own my home free and clear and now it's a negative on my credit score. Lovely.
Then came the dreaded, infamous, Too Many Inquiries! factor; but look how they have juiced it up to sound less negative: "Number of inquiries was also a factor, but the effect was not significant."
BTW, I had one 14 month old inquiry.
Finally posting on this forum after gawking for a while. 🙂
I've been working on my credit repair the last couple of years and am kind of at that point where I'm not sure if there is anything else I can do but wait it out.
Had a medical issue back in 2016 / 17 which contributed to somewhere around 12 account charge-offs and a car repossession. Over the past year and a half, I've been aggressively paying the accounts off (all are at zero balance, settled), disputed as many as I could (several fell off, am doing another round this month), opened five rebuilder / secured / sub prime cards starting two years ago (Citi Secured, Self Secured, Cap 1 Secured, Cap 1 Unsecured, Credit One Unsecured), did the Self Lending self loan (like 6 months left on that one), Experian Boost, have had a high interest car loan the last two years, am about to replace it with a newer car loan at a lower rate, and obviously keep cards paid off every month and paid on time (*accidentally had a 30 day late when I was changing banks and forgot to update the account that was on autopay).
Looks like stuff starts aging off in 2023 and 2025. Scores went from the low 500s to 696 Trans, 712 Equifax, 625 Experian.
The problem I'm having is that even with everything settled, zero balances, and "good" scores," I'm still in purgatory when it comes to getting an actual decent points card. Capital One gave me an unsecured one a few months ago, but it's a $300 limit on a non rewards card. And since I already have two cards with them (one which is my oldest card now), even though their my "best bet" in the nearterm for a better card, i'm at their card limit.
Goal Cards in the future are Chase Sapphire, AMEX Blue, AMEX Gold, and Citi Premier.
Current plan is to just keep sending dispute rounds every few months, keep balances at zero, not apply for anything new at least until early 2022.
Is there anything I'm missing? Anything I can do sooner to help compensate for the scars from the past on my credit report?
I have a SDFCU secured card that I've had since November 2011 and still remains secured. On their website when I log in, it reads as "EMV SECURED VISA PLATINUM." Since I don't need it except to help my average age of accounts, I brought the limit way down to the minimum of $250 so as to not tie up excess funds.
I'd love to get this unsecured and wonder what behaviors are thought to lead to their unsecuring. When I called them many years ago they said there is no way to ever unsecure.
My FICOs are well above 800, but I never use the card, do I just need to run transactions though it to unsecure it? Maybe I should pump up the limit a bunch then use the card and hope it unsecures at a nice high limit.