Refusing to Pay for a Timeshare

“How Refusing to Pay for a Timeshare Purchase Can Affect Your Credit Score”

Refusing to pay for a timeshare purchase can have a significant impact on your credit score. Here’s how:

Late Payments: If you stop making payments on your timeshare, the timeshare company may report the late payments to the credit bureaus. Late payments can remain on your credit report for up to seven years and can significantly lower your credit score.

Charge-Offs: If you stop making payments on your timeshare and the debt is sold to a collection agency, the timeshare company may charge off the debt. A charge-off can remain on your credit report for up to seven years and can significantly lower your credit score.

Collections: If the debt is sold to a collection agency, the collection agency may report the debt to the credit bureaus. Having a collection account on your credit report can significantly lower your credit score.

Judgments: If the timeshare company takes legal action against you to recover the debt, and you lose the case, the judgment can be reported to the credit bureaus. A judgment can remain on your credit report for up to seven years and can significantly lower your credit score.