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nouvelzelande

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Recovery of Credit score drop from maximum utilization of credit limit
I used 2900 out of 3000 credit limit on one of my cards. But I paid off the balance within 3 days. I am surprised to see my credit score drop by 40 points which is kind of stupid. Why should it matter if I pay off the balance immediately? Now since the balance is 0 in that card, will my credit score go back to normal?

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It's goes by what's on your credit report and creditors usually only reports once a month. So depends on when it was reported? Quite possibly it didn't report/update the new zero balance yet, even tho you paid it off three days later. Check the report and see what it says. Utilizations has no memories and no long term effect on your credit, your scores from utilizations reflect whatever it shows on your credit report at whenever time it's pulled.

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