Credit glossary

All zero except one (AZEO)

Definition

A forum-born utilization tactic: pay every card to $0 before its statement closes except one, which reports a small balance.

AZEO comes from consumer credit forums, not from FICO, and no scoring company endorses it by name. It targets the utilization snapshot. FICO has said that 0% utilization can keep a file from earning the maximum points, so leaving one small balance avoids that while every other card shows nothing owed. FICO's broader guidance is simpler: lower utilization is generally better, and staying below 10% tends to help.

Because most scores read only the latest reported balances, any gain from AZEO lasts only while the low balances keep reporting. That makes it a short-term move for the month or two before a loan application. You still owe each statement's minimum by its due date, and a missed payment would cost far more than a perfectly tuned ratio.

Example

Say you have three cards with limits of $5,000, $3,000 and $2,000. Before each statement closes, you pay two of them to $0 and leave $100 on the third. Overall utilization is $100 รท $10,000 = 1%, and only one card shows a balance.

Guides that go deeper

Sources

  1. What Should My Credit Utilization Ratio Be? (myFICO release), myFICO via Business Wire
  2. How to AZEO (forum thread, November 2018), myFICO Forums
  3. What is Amounts Owed?, myFICO

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