Can timeshare ruin your credit?

Can timeshare ruin your credit?

If you’re trying to buy a house or vehicle, chances are your credit will be checked by someone in order to ensure that you’re able to make monthly payments. This is something that most young adults begin to learn very quickly, and it’s why no one should take on any extra financial obligations that they simply can not afford.

While a lot of timeshare owners do not purposefully sign up for their timeshare, they begin to realize very fast that they can’t afford to pay their monthly mortgage payments or annual maintenance fees. This begins to ruin credit and makes it hard for them to bounce back in the immediate aftermath. 

How Does A Timeshare Hurt Your Credit?

So how exactly does a timeshare ruin your credit? Well, it’s a long process that could end in detrimental consequences, but first and foremost it starts with missing monthly payments. Here’s a quick look at the steps that may take place before your credit is severely damaged and your timeshare is foreclosed on:

The Preliminary Collection Attempt

We’ve all been late to pay something, some little, some large. There’s usually a reminder that comes in at some point that immediately triggers a response and settles everything out. This is the same thing that happens when you miss a single payment on your timeshare. A representative from your resort developer will reach out to you in order to receive funds that will bring your account up to current standards. 

Depending on the timeshare company’s leniency, in this phase you can usually talk through forgiveness with a representative. In order to try and get back up to par, state any financial hardship you’ve had and they might try to work out a deal with you to help you get back on track at a reasonable pace. Should you, however, decide to keep avoiding their efforts to contact you, they could be forced to take further action. 

The Last Collection Endeavor

While it’s hard to say just how long a timeshare company will wait until they take one last chance at collecting money from you, it is usually within three months of your initial missed payment.  For some, this is a rather scary wake-up call, but for others it’s just another call they’re avoiding. It is important in this step to think about your timeshare’s mortgage loan (if applicable) and how high it’s interest rate has increased. This will only add to the mountain of debt you have. 

If a resort developer’s team is unable to get in touch with you, they may then commence legal proceedings in order to take back what was originally theirs. 

Can timeshare ruin your credit?

Foreclosure On Your Timeshare

Once the timeshare management group is unable to reach out about your property, they will then start the process of foreclosure. This begins with the resort sending representatives to court to take legal action and retrieve the property back in their name. Depending on the state that your timeshare property is in, a foreclosure process could take anywhere from six months to one year to complete. The worst part of foreclosure is the stamp it leaves on your financing abilities moving forward. Like mentioned above, foreclosures are public record, meaning they can be accessed by anyone at any time. This tends to hinder buyers in the future when sales teams see their history and notice that a foreclosure is attached to their namesake. 

How Long Will It Take To Repair My Credit?

This usually depends on a lot of factors, like your total credit history, your credit line and other financial information. For some, it could be only six months, but for others it could take years before they bounce back from the damage timeshare did to their credit score. However, should you choose to exit your timeshare with a reputable cancellation company like Wesley Financial Group, LLC, you’ll be offered a credit repair service right after your termination if it is needed. 

When this happens, the company will assign a credit repair representative to you, and they will assist you by going through any negative points or remarks – pertaining to your timeshare – on your credit report. This can help alleviate your financial freedom, especially for something you were manipulated into buying. It should be noted that while you do have the right to dispute inaccurate information in your credit report, neither you nor a credit repair specialist can remove accurate, current, and verifiable information.

Why Would Anyone Buy A Timeshare?

It’s tough to see very many positives for a timeshare. For many owners, their timeshare started with a sales pitch that avoided any negative aspects. They were painted an image of worry-free vacation ownership when in the end, all they did was worry about one thing after another. Usually timeshare salesmen offer up a free meal or a free night stay just to have potential customers meet them for hours upon hours in a meeting. From there, potential buyers turn into timeshare owners before they can even blink. It’s a tough process for anyone to witness. Luckily, cancellation companies like Wesley Financial Group, LLC exist to help provide a way out for people who had to go through situations like this. 


Timeshares can hurt your credit score exponentially if you miss payment after payment and avoid your timeshare management company trying to contact you. A foreclosure could be the end result of avoidance, and once this happens your financial failure then becomes public record. This makes the road to recovery a lot longer and more difficult. 

Luckily, if you reach out to a renowned cancellation team like Wesley Financial Group, LLC, you’ll not only be able to exit your timeshare, you’ll also be offered a credit repair service after your cancellation. To learn more about Wesley Financial Group, LLC, and its cancellation process, visit their website. 

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