Can timeshare ruin your credit?

Can timeshare ruin your credit?

Credit seems to dictate a lot of consumers’ buying abilities. Many states view timeshare properties as real estate when it comes to foreclosure.

Depending on the timeshare company you purchased your unit through, one missed payment on your timeshare unit could greatly affect your credit rating. Some management companies choose not to report to credit bureaus, in which case you will luck out in that sense. However, if you continue to miss payments for an extended period of time, the end result is that you could be left with foreclosure. 

According to, foreclosure on a timeshare can lower your credit score by at least 100 points. This could potentially make or break your chances of buying the car or house you’ve always dreamed of owning. It could also raise your monthly rate when you go to take out a loan on a different major purchase.

The Phases Of Not Paying Your Timeshare

Missing payments on your timeshare will consist of multiple phases that include collections efforts, communication efforts and eventually foreclosure. Let’s examine the phases that could occur should you completely hold off all payments on your timeshare. 

The Preliminary Collection Attempt

We’ve all been late to pay something, some little payments, some large payments. There’s usually a reminder that comes in at some point that immediately triggers a response and settles everything. This is the same thing that happens when you miss a single payment on your timeshare. A representative from your resort developer will try to get in touch with you in order to 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 will be forced to take further action. 

The Last Collection Endeavor

Can timeshare ruin your credit?

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 commence the legal proceedings in order to take back what was originally theirs. 

Foreclosure On Your Timeshare

Once the timeshare management group is unable to reach out about your property, they may 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 financial 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. 

An Easier Alternative: Timeshare Cancellation Assistance

Rather than trying to escape payments, sell your timeshare, or cancel it yourself, you should take into consideration finding a legitimate timeshare exit company. What better way to ensure a successful termination of your timeshare than to receive assistance from a trained professional on cancelling your timeshare. This is why finding a company with an immeasurable amount of timeshare experience is so important. The timeshare industry can be a confusing place full of manipulative people, so you have to be certain that those assisting you have seen it all. Here are a few of the other factors to think about when looking for a viable timeshare cancellation company: 

One company that satisfies all of these demands is Wesley Financial Group, LLC. Having decades of experience in the timeshare cancellation industry, Wesley Financial Group, LLC can assure success for every case they take on. Their money back guarantee goes further than the rest – if your timeshare isn’t cancelled within the agreed upon time frame, all of the money you paid goes right back into your pocket.


When it comes to timeshares and your credit score, there are a lot of factors that could negatively affect your rating. It’s important to understand whether or not your timeshare company reports to a credit bureau, because this could let you know just how vital it is for you to make payments in a timely manner.
That being said, if you feel that you were misled when you purchased your timeshare, you should seriously consider finding a trusted timeshare exit company like Wesley Financial Group, LLC. Whether it’s their positive consumer reviews, trusted in-house process, or money back guarantee, Wesley Financial Group, LLC leads the industry in timeshare owners cancelling their agreements. To learn more about Wesley Financial Group, LLC and their trusted process visit their website.

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