Learn how canceling a timeshare can impact your credit score, what to avoid, and how to protect your financial history during the process.
Introduction
Many timeshare owners hesitate to start the cancellation process because they’re afraid it will ruin their credit score. This fear is understandable — after all, credit health affects everything from loan approvals to job opportunities. The truth is, whether a timeshare cancellation harms your credit depends entirely on how the process is handled.
1. The Direct Impact of Cancellation
If you cancel your timeshare properly — through legal channels and with all payments up to date — the cancellation itself should not negatively affect your credit report. Credit bureaus record payment history and debt obligations, not ownership status.
2. The Real Risk: Missed or Late Payments
Problems arise when:
- You stop paying your mortgage or maintenance fees before the cancellation is finalized.
- The resort reports non-payment to credit bureaus.
- Foreclosure proceedings are initiated on a financed timeshare.
Late payments and defaults can remain on your credit report for up to seven years, significantly lowering your score.
3. Why Timing Matters
If you are within the rescission period (the legal window to cancel, often 3–14 days after signing), you can walk away without any credit damage — provided you follow all contract instructions precisely.
If you are past that period, you’ll need a strategy to avoid payment interruptions during negotiations or legal proceedings.
4. Using Professionals to Protect Your Credit
A reputable timeshare cancellation attorney or company:
- Ensures your payments are handled correctly during the process.
- Sends official correspondence to prevent collections.
- Provides documentation proving the cancellation was mutual and legal.
5. Steps to Minimize Credit Damage
- Stay Current on All Payments until you have written proof of release.
- Get Everything in Writing — never rely on verbal promises.
- Request a Final Statement from the timeshare company showing a zero balance.
- Check Your Credit Report 30–60 days after cancellation to confirm accuracy.
Conclusion
Canceling a timeshare doesn’t have to destroy your credit. The key is to manage payments, follow legal procedures, and document every step. With the right approach, you can free yourself from your timeshare while keeping your financial health intact.