31pt Fico8 Drop

[Anonymous]

I successfully paid off my Self Lender loan and it updated as closed/paid today. My scores dipped 31 points, respectively. 

Will my scores go back up? Or do I need to take out a second SL loan?

[AllZero]

Your scores will recover due to accounts aging.

I would only recommend 5 year SSL. 1 year is too short and new account penalty associated with it.

[Anonymous]

Unfortunately this happens with installment loans all of the time. You realized a score lift as you paid down the loan and when the loan is paid off, the lift goes away. 1 year will just keep your age of accounts suppressed so I would look into a 5 year SSL as mentioned.

[Anonymous]

If this was your only open installment loan and it was nearly paid off prior, the score drop you saw is pretty typical.