Can a bad credit rating for a primary borrower improve once a balance has successfully been paid off even when there are cosigners involved?

It will not improve as much as it would with no cosignor but some Answer A "bad credit rating" would not be impacted by an account being co-signed, or paid off. Your credit is affected by having an inquiry to open the loan, having a new loan granted, making payments on time (or not, as the case may be). If the loan was paid on time, as agreed, your credit will improve.

If it was not, the credit of all signatories will be damaged.

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