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Question By
JRS1988

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3 years to grow credit score 58 points, 1 month to lose 81
My starting score was 788, now its 707. I have never been late on a payment, nothing has ever been in collections and i pay the balance of my credit cards off every month. I decided to gain some points by placing my dads motorcycle purchase on my credit card which it almost maxed it out (97% was utilized). My statement reflected the full amount which has since been paid, well before the due date yet my credit score drops significantly. Something is definitely wrong with this picture. Will my credit score rebound when it sees that my overall credit card balance is 0 next month? or will it take years to recover like I'm thinking its going to.

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Regardless of whether or not you paid off the balance, you still utilized 97% of your available credit. If your lender reported your balance to the bureaus on a day before you'd paid it off, it would show you as using 97% of your credit. That would hurt your score quite a bit. Unfortunately, you're going to have to spend more carefully for the next few months to build it back up.

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