So I just finished paying off my student loans last month and I was excited to see (what I had hoped) a bump up in my Fico score. I was unpleasantly surprised when the score actually dipped like 25 points. After doing some research apparently the credit score will go down when you finish a loan and have no other ones. That is precisely my case. I have no car, student, or mortgage loans. I have zero debt for now. My question is will the lack of an installment loan keep lowering my score every month or was that a one time hit?
Added (1). Update: Many answers are assuming I don't have a credit card. I've had a credit card that I have been paying off in full for more than 7 years. Never had a late payment on anything. The dip in the fico score was because I finished my student loan and since I didn't have any other installment loan (ex car, mortgage) it went down. Next month I will also not have an installment loan but I'll still pay off my credit card in full like I have for so long. Will the lack of a loan still make it go down?
Read more: Does my credit score keep dropping if I don't have an installment loan?
