Will my credit score increase after I pay off my car, but have a reposition on my record?
You did well by making on-time payments to your own car loan. Unfortunately, the co-signed bad account will remain on your credit for a while. Accounts remain on your credit report for 7.5 years after they are paid off or go to collections. Continue making on-time payments to rebuild your credit history. And consider this a "lessons-learned" on co-signing for others.Paying off your car loan won't improve your score. Installment loans build your credit as you make the on time payments.Not only will your sister's car loan negatively impact your credit/score, as co-signer they will be coming after YOU for the balance of that car loan. It is also very likely that if you don't arrange settlement, they will sue. They will get a judgment and can then garnish your wages, attach your bank account, and lien your property. You are about to learn a very valuable lesson. NEVER, EVER co-sign or loan out your credit to ANYONE you are not legally married to. It never turns out well.
You did well by making on-time payments to your own car loan. Unfortunately, the co-signed bad account will remain on your credit for a while. Accounts remain on your credit report for 7.5 years after they are paid off or go to collections. Continue making on-time payments to rebuild your credit history. And consider this a "lessons-learned" on co-signing for others.Paying off your car loan won't improve your score. Installment loans build your credit as you make the on time payments.Not only will your sister's car loan negatively impact your credit/score, as co-signer they will be coming after YOU for the balance of that car loan. It is also very likely that if you don't arrange settlement, they will sue. They will get a judgment and can then garnish your wages, attach your bank account, and lien your property. You are about to learn a very valuable lesson. NEVER, EVER co-sign or loan out your credit to ANYONE you are not legally married to. It never turns out well.