So You Finished Your Self Lender Loan...Now What?

done with Self Lender? Now what?

By Lauren Jackson

So you finished your Self Lender loan payments or you’re almost there? First of all, take a moment to do a happy dance and congratulate yourself for putting in the work and making the sacrifice to make it happen!

Done dancing? Cool, now it’s time to refocus. You’ve started building the momentum for building better credit, now you need to make sure you keep it going.

Remember – while Self Lender can help you get started with building credit, if you finish your account and never do anything else, your credit score could drop again! But there are definitely ways to reduce that risk and keep building, which is why we put this post together. We want to help you clear up some of that future uncertainty and understand where you could go next.

Here’s what to keep in mind for your credit horizon after you finish your Self Lender loan...

What happens after someone finishes their Self Lender loan?

Once you finish your first Self Lender loan, you close your account and get your principal back. What’s that mean exactly? It means you get the money you paid into your loan (minus interest) back.

While some users use that savings as a nest egg to set up an emergency fund, or apply it as a down payment on a car loan or secured credit card, the choice is ultimately yours.

But there are some things you need to know about your credit in the meantime…

First, whenever a line of credit closes – any line of credit – your credit score could drop again. How can you help reduce this risk? Keep building your credit! Make sure you’ve got options on the horizon so you can keep building and improving your credit.

Think of your credit like a living, breathing thing – if you don’t keep nurturing it, it won’t grow. It’s never a one-and-done thing. Anyone who’s ever killed a houseplant after forgetting to water it for weeks on end can probably relate to that.

Basically, don’t let your credit score wither.

dead plant

Why you should keep building your credit

Why should someone keep building their credit after they finish their first Self Lender account? A few reasons, such as:

  • Getting better car insurance rates or interest rates in general
  • To work towards major goals like purchasing a vehicle or buying a home
  • To get a better job, get a government job or get a higher military clearance
  • To keep growing their credit score
  • To rent a better apartment

After all, not only could having a higher credit score help open up more of these possibilities, having a better credit score could save you thousands of dollars over the course of your lifetime.

cost of bad credit - experian tweets

Who might want to consider getting a second Self Lender loan?

If you had a good experience and love saving money while building credit, then a second Self Lender loan could be the right option for you. It could also be a great choice if you’re not ready to commit to a different installment loan (such as a car loan) and need to keep a healthy credit mix on your credit report.

Keep in mind that at this time, we don’t offer an automatic rollover into a second Self Lender account. Instead, you would need to close your account, get your principal back, and open a new one.

Graduating to new credit products

Another route many of our customers take is to “graduate” to new credit products once they’ve built their credit enough with Self Lender. That way they can keep building credit and working towards their larger financial goals.

These products could include:

  • Secured credit cards
  • Unsecured credit cards
  • Car loans
  • A mortgage

As you graduate to new credit, remember to keep your credit mix and overall utilization rate in mind. Using diverse types of credit – such as a mix between installment loans and revolving credit lines – accounts for 10% of your FICO credit score. Some experts also recommend that you keep the amount of total credit you use to under 30% of your available credit.

And don’t forget to keep using the same positive financial habits that got you this far with Self Lender! Keep making your payments on time and in full, since payment history accounts for 35% of your FICO credit score.

Ultimately, remember that building your credit is the work of a keep up the good work!

About the Author

Lauren Jackson is the Content Marketing Manager for Self Lender and editor of their blog. She has a background writing about tech, wellness, women’s issues, and now – personal finance. She's passionate about the intersection of business and social good and devoutly dedicated to budget travel. She believes you can have an amazing life – even if you don't have the best health or the most wealth.

Written on April 3, 2019

Self Lender is a venture-backed startup that helps people build credit and savings. Comments? Questions? Send us a note at

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