Does having a joint loan with somone with a good credit record improve your rating?

Question

Being in a financial relatsionship with somone who defaults on payments damages your score, does being in a financial relatsionship with somone with a good score improve yours?
Will it still damage theirs if you don't do anything wrong after you enter the financial relatsionship, but your record was poor to start with?

Answer 1

Actually, my husband just had his credit history stolen and he took a substantial credit loss. The best advice we received was to add him to my mother's credit card. New credit (car loans, mort., new card accounts) will generally decrease your score by an average of 30 points for six months. Credit agencies consider it a negative investment until you establish payment history. However, my mother had a major credit card with high credit for well over ten years. By adding his name, her credit was not damaged because it was not a new account and his credit was elevated because on the credit report it does not register that he was just added - it looks like he has been on the account for well over ten years as well. It's basically a fluke in the credit reporting system.

Answer 2

If you have a joint account with someone that has a better score they are doing you a favor. If you default on that loan it will hurt both of your credit reports which will make the person that helped you very mad. But if you have a joint loan and your paying on time every month and then you eventually pay it off their credit is fine and yours has improved some.

Answer 3

No, i won't improve your rating, but it may damage theirs. when i moved back into my house after the divorce settlement, my ex brother in law had been living here. He had defaulted on a car loan and when I went for credit for a new sofa i was turned down. when i checked it out, it was because he had been linked to my credit rating!!!!!

Its not you it will affect, but the person with the good rating may find they have theirs brought down due to your past problems.

both of you check out your ratings using experian then you have got a good idea of whether or not to go ahead with the loan.

Answer 4

Yes, it can improve your credit record as long as the loan is paid promptly. And no, it will not reflect poorly on the other person -- again, as long as the debt is paid on time.

Answer 5

WE must clarify something here;
your credit record, like your birth cert,
is of you and you alone.

IF you want to borrow money to invest in a solid venture and you have a co-signer, and all monies are paid back as agreed, your credit will climb.

DOES that help?

Answer 6

No it will not improve or or spoil their credit. The only way you can improve yours is to pay on time every month and if you don't your co-signer is responsible and it will spoil his credit if you don't pay on time.

Answer 7

Nope, will damage your partners tho

Answer 8

Dunno but good question!