This creditor is likely refusing to report this debt to the consumer credit reporting agencies because this is not actually your debt; rather, it is a business debt which you promised to repay if the business failed to do so. The credit was not extended based on your credit rating, and the credit was not issued in your name, so the creditor is correct in not reporting the payments you are making on your credit report. In all likelihood, there is little you can do to force the creditor to report these payments on your credit report. In fact, the creditor could be violating federal law if it agreed to report this account on your credit report as a personal debt.
The judgment the creditor obtained against you is appearing on your credit report because it is a matter of public record. Even though this debt was not incurred in your name, as a guarantor, you became liable for the debt when the business defaulted on the loan. Paying the judgment will not result in its being removed from your credit report. However, the creditor should file a satisfaction of judgment with the court once you have paid the judgment. Once this is done, the judgment should appear as "satisfied" on your credit reports. If the major credit reporting agencies (Equifax, Experian, and TransUnion) do not update your credit reports in a timely manner to show that the judgment has been satisfied, you may want to file a dispute with the bureaus and send them a copy of the satisfaction to prove that the judgment has been paid so that they will update your file accordingly. A guide to disputing credit report errors is available from the Federal Trade Commission at Ftc.gov.
In regard to your credit score, a satisfied judgment appearing on your credit report will likely lower your credit rating; however, a satisfied judgment should cause much less damage to your score than an unpaid one. You should also keep in mind that this judgment should be removed from your credit report altogether seven years after the date the judgment was entered against you, so you will be able to rebuild your credit in the future.
To learn more about credit, credit reporting, and credit scoring, I encourage you to visit the Bills.com Credit Information page.
I wish you the best of luck in resolving this judgment, and hope that the information I have provided helps you Find. Learn. Save.