Let’s talk about timeshares and your credit score. Timeshares are ownership in a vacation property, often including desirable amenities, incredible locations, and access for recreational trips almost anytime you want. Timeshares are a popular way to visit luxurious destinations with friends or family at a discounted price.
Your credit score is a number that indicates how healthy or trustworthy your borrowing and repayment habits are according to your debts and timely payments. Your credit score is determined by many things, such as how many accounts you have open, the balance on each, the ratio of what you owe to available credit, the number of requests on your credit, late or missed payments, and more. Your credit score will determine what kinds of loans you can get and the interest rates on those loans. It can even be a factor in jobs and housing applications!
Timeshares & Credit
So what do timeshares and credit have to do with one another? The first is that timeshares are an expensive initial purchase – usually between $20-50,000 for your ownership. This means that when you purchase a timeshare you are likely to take out a loan for that timeshare. Taking out a loan affects your credit report, especially if it’s an expensive loan and it’s for something that won’t be classified as an asset (such as a car or house).
Another way timeshares can affect your credit is through timely payments. When you make a late payment on a bill or loan, there are often “grace periods” in place. These can range from 1-15 days depending on the lender. When a late payment is made beyond the grace period, the lender has the option of reporting it to a credit bureau, which will then affect your credit score. Timeshares usually have monthly payments for ownership, but they also introduce additional fees such as cleaning, maintenance, and assessment fees. These fees usually climb over time, even over inflation rates. You will be required to pay more and more every month, and if you pay late? Your credit score will take a hit.
Finally, the most common way we see timeshares affecting credit is when your timeshare “mortgage” defaults. Many resorts classify your timeshare agreement as a mortgage, which means that if you stop paying for your timeshare it can be entered as a foreclosure. This has disastrous effects for your credit score and can follow you into your future to ruin your finances.
At Easy Timeshare Relief, our experts work with the goal of providing you relief from your expensive timeshare WITHOUT the damage to your credit or financial reputation. We can help you examine your timeshare contract and negotiate a peaceful exit from your timeshare contract without the need to default on your timeshare payments or suffer the consequences of late timeshare payments. Don’t let your credit suffer because your timeshare has turned out to be more than you expected. Call our experts at Easy Timeshare Relief today.