Can timeshare ruin your credit?

Can timeshare ruin your credit?

Post in timeshares

The short answer? Yes. A timeshare can absolutely hurt your credit. This happens when owners either miss timeshare mortgage payments or fail to pay their annual maintenance fees, taxes or special assessments.

In most cases, after an owner’s first payment is missed, a collection effort will be made by either the resort developer or homeowner’s association. Consider this a warning, because the management company hasn’t gone to a third party outlet yet. However, this so-called warning is just the start of the owner’s credit report or credit score being tarnished.

Another factor in play here is your interest rate on your timeshare mortgage. Missing payments could potentially spike (high interest rates) your total amount due, making it nearly impossible to pay off anytime in the near future, which in a roundabout way will hurt your credit.

In some cases, if you’re fortunate, your timeshare management company may not report to credit bureaus. In this instance, your chances of having your credit report hurt by timeshare could be foreclosure.

Can you just walk away from a timeshare?

Much like owning a house, walking away from a timeshare will eventually end in foreclosure. Since timeshare property is treated like actual real estate, the foreclosure process is the same. If you continue to miss loan payments on your loan, the timeshare company can go to court and file a foreclosure lawsuit to obtain the rights to your unit and take it back. While it mainly depends on what state you have your timeshare in, this process can take about one year. 

A lot of individuals tend to argue that if their timeshare loan payment is fully paid off or they have completely paid in full for their unit, they should be able to just walk away. However, this is not the case because of annual payments known as timeshare maintenance fees. 

How much does timeshare foreclosure affect your credit score?

Can timeshare ruin your credit?

According to, a foreclosure will drop your FICO score at least 100 points. FICO credit scores, which happen to be the most popular type of credit scores, range from 300-850. This means that a timeshare foreclosure could hand you a significant loss in your score. goes on to talk about how a timeshare foreclosure will have more of an effect on an owner who holds a higher credit score, as opposed to an owner whose credit score is already lower.

The best way to avoid this? 

If you find yourself in a situation that continues to throw a financial burden on your family, you might want to start examining other options in order to get out of your timeshare.

How can I get rid of my timeshare without damaging my credit?

After years of paying all of the fees and charges on their timeshare, owners begin to start thinking about any way to get rid of the financial burden that they can. One of the best ways to do this is through timeshare cancellation. This means that your timeshare contract is terminated and your name is no longer tied to something that costs you money every year, or in some cases every month. 

Timeshare companies that offer credit repair services should be a safe way to end your financial obligations. Even if the cancellation process ends up affecting your credit, the cancellation company should offer to assist in repairing your credit if it is a service they offer. 

Getting rid of your timeshare is not a simple task, but cancellation companies can give you the peace of mind that someone else is going to work for you everyday and not back down to the timeshare industry. However, you will need a cancellation company who makes sure they can cancel your contract by going through a qualification process. Do not work with companies who will outsource your case to a law firm for legal advice, a real estate attorney or other companies. Also, make sure the company has a 100% money back guarantee, so that you don’t find yourself deeper in debt. 

Credit repair

While it is not guaranteed that timeshare cancellation or foreclosure will affect your credit, if you work with a timeshare cancellation company like Wesley Financial Group, LLC, you’ll be fortunate enough to find that they offer a credit score repair program after your timeshare is terminated. This is where a representative will assist you and attempt to go through your credit history content to insure certain negative aspects – in regards to your timeshare – are removed.

This can be crucial for you and your family moving forward if you’re planning for major life decisions like starting a family or retirement.


Putting your money towards a timeshare can be harmful to your credit if you miss a payment or fail to pay any additional fees. Just like a home or car loan, you have to take your timeshare ownership seriously and pay it off as it’s presented to you.

When it comes to your credit taking a hit, the aspect that you should be most cognizant of is foreclosure. Clients of a timeshare company are usually unaware of just what they’re signing up for when they buy a timeshare. You have to read the fine print and ask questions that will give you an idea of just how much money you will be losing every year.

If you feel that you were misled or lied to during the purchase of your timeshare, you may have a case to get it off of your hands. Your best option at that point is to look for a timeshare cancellation company that works in-house, offers a 100% money back guarantee, and offers credit repair services.

One timeshare cancellation company that meets all of these criteria is Wesley Financial Group, LLC. Founded in 2011, they have proven to be a trustworthy company to cancel your timeshare. For more information on their services, visit their website.