A timeshare can certainly affect a person’s credit score. When you buy a timeshare, you’re owning a portion of the vacation property. The firm you buy the timeshare or finance the timeshare from informs all the credit bureaus about your payment details.
If you fail to make your monthly loan payments or maintenance fees, it can impact your credit score. Your payment history is available with the companies, and they can send it to the credit bureaus. Let’s look at this in more detail.
Timeshare foreclosures are similar to residential foreclosures. Your property is sold to the bidder with the highest offer. The property is sold, which shows up on all owners’ credit histories, just like how a home mortgage default would.
If your timeshare goes through a foreclosure, your credit score will plummet. Even if you manage to get out of your timeshare contract, it will still impact your credit score because foreclosure is reported to all public credit bureaus and is a public record.
A timeshare foreclosure isn’t necessarily because of any late payment issues, as late payments are more like penalties. However, these penalties can easily affect your credit score. If you miss even one timeshare maintenance or repair fee, it will be reported, and you will receive negative entries, which will be added to your credit history report.
If these entries aren’t resolved quickly, they can damage your credit report for a minimum of seven years. It also means you don’t get to access your timeshare property on your designated weeks.
It will still be your financial burden if you receive a timeshare in inheritance. Even if you’re not the one who signed up for the timeshare, you will still be the owner of the timeshare contract. You will be responsible for all the timeshare fees and payments, and if you don’t pay off the fees, they will be added to your credit report.
Timeshare Foreclosures and Credit Reports
As we mentioned, timeshare foreclosures will appear on the owner’s credit report. Because of this, your credit score will take a nosedive, and the drop can be even more dramatic if your score was way higher before the foreclosure.
The timeshare foreclosure can impact your ability to take a mortgage and creditworthiness for at least seven years. Even after that, your future loans can be denied, including a car or credit card loan. You might also have to deal with increased interest rates.
Timeshare Cancellation Services
You can get out of your timeshare contract to save your credit score. The timeshare resale market isn’t too viable, and you can easily get rid of your timeshare ownership with a timeshare exit attorney.
The Law Offices of Mitchell Reed Sussman & Associates specialize in timeshare cancellation. We have professional and licensed timeshare cancellation attorneys. They will not only offer you more information about the timeshare cancellation process but guide you every step of the way.
You can reach out to our timeshare attorneys for a timeshare cancellation today.