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How to Dispute Timeshare on Credit Report
When you need to know how to dispute a timeshare on a credit report, Timeshare Defense Attorneys can help. Contact us for more information now!
Canceling Your Timeshare
If you’re looking to eliminate your timeshare debt from a credit report, you might wonder if it’s possible and what you need to make it happen. Several options exist for getting rid of your timeshare, but a few of them might put your credit score at risk.
Reselling a timeshare, canceling the contract, rescinding the purchase, or giving it to a third party or back to the timeshare developer are all ways for timeshare owners to get rid of their timeshare. To avoid damaging your credit, you must continue making your mortgage and maintenance payments to ensure you have successfully exited your timeshare agreement.
What Are The Methods of Exiting a Timeshare Agreement?
Canceling your timeshare during the rescission period is the simplest way to do so. Depending on your state, the rescission period is usually three to ten days. In Nevada, it’s five days.
There are other methods, but they can be complicated. These include the following:
- Giving it back to the timeshare company
- Reselling the timeshares
- Renting your timeshare
- Giving away the timeshare to a third party
Consider speaking to an attorney if you have a problem with a timeshare resale company or are unsure of how to exit your timeshare contract.
How Is a Credit Score Calculated?
Credit score computation, carried out by firms such as FICO, is grounded in an individual’s credit history. This information is then utilized by lenders and financial institutions to decide the quantum of credit and the interest rate to offer a prospective borrower.
Scores provided by FICO span from 300 to 850, where a higher score indicates a better credit standing. It’s important to note, particularly for timeshare resort owners, that late or missed payments reported by credit agencies can negatively impact this score. Therefore, maintaining a good payment schedule is crucial to prevent your timeshare from hurting your credit. Remember, a good attorney-client relationship can provide legal guidance in managing such issues effectively.
How Do Late Payments Affect Credit Reporting?
Generally, when a borrower fails to settle a debt, such as outstanding credit card dues or timeshare mortgage payments, the creditor will report the borrower’s delinquency to the three major credit bureaus, Equifax, Experian, and Transunion. This action is commonly taken by entities ranging from credit card companies to timeshare developers, including those operating vacation ownership properties or timeshare resorts.
These late payments or delinquencies are then recorded on the individual’s credit report. They are marked according to their degree of lateness—30 days, 60 days, 90 days, etc.—which, in turn, diminishes their credit scores. Under the terms of most timeshare contracts, the failure to pay annual maintenance fees or make timely timeshare mortgage payments could lead to timeshare cancellation proceedings, further complicating matters under timeshare law.
Essentially, the more late payments are made and the longer payment is left unsettled, the lower the individual’s credit score. Therefore, careful consideration is advised before any timeshare purchase, as such a commitment could potentially hurt your credit score if not managed properly.
Can I Stop Paying for My Timeshare if I don’t Want to?
The timeshare company will take whatever measures are necessary to recover the money if you stop paying. After making calls and sending letters, the company will assign the debt to a collection agency. Your continued failure to make payments will result in foreclosure and possible legal action against you.
Experienced timeshare defense attorneys near you can help you if you have been wrongfully reported to credit bureaus when you never defaulted on your payments.
How Will Canceling Your Timeshare Affect Your Credit?
Canceling your timeshare contract won’t ruin your credit. It’s important to remember that you must continue paying your timeshare mortgage and annual fees until your timeshare contract has been successfully canceled. Keeping the fees up-to-date will also allow you to rent the property and will be a major selling point when trying to sell the timeshare.
In What Way Does a Timeshare Foreclosure Affect Your Credit Score?
Timeshare foreclosures are similar to residential foreclosures because they can have serious financial consequences. The foreclosure of a timeshare goes on your credit history and impacts your financial standing for years to come.
As all creditors have the right to report delinquent payments to the credit bureaus, defaulting on a timeshare agreement may result in your case being sent to the credit bureau, creating the possibility of foreclosure. A negative mark on your credit report may remain on it for seven to ten years. A mark like this could negatively impact your credit score in the future, affecting your ability to get financing, including a mortgage or auto loan.
Due to a timeshare foreclosure, you will also have trouble obtaining reasonable rates on any future credit. In extreme cases, your credit lines may be reduced or even closed. As a result of the timeshare foreclosure process, your insurance premiums may also increase.
For instance, if your credit score was 680 before the foreclosure, it would fall between 575 and 595 after the timeshare foreclosure, which is a decline of 85 to 105 points. In contrast, if your credit score was 780 before the foreclosure, it would decline to between 620 and 640—a drop of 140 to 160 points.
The foreclosure of a timeshare could adversely affect your job search. Federal law allows employers to check credit reports on potential employees, so a timeshare foreclosure could affect your job search.
A total of 11 states have passed legislation restricting employment credit checks on potential employees – California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, and Washington.
The importance of maintaining your credit score cannot be overstated. An experienced timeshare attorney can assist you in disputing any timeshare debts on your credit report. Reach out to Timeshare Defense Attorneys for a free consultation.
How Can Attorneys Assist in Disputing Timeshare in a Credit Report?
If you are struggling with your mortgage payments on your timeshare or facing imminent foreclosure on your timeshare, consider researching all of your available options with the help of seasoned timeshare lawyers.
Timeshare Defense attorneys assist owners in finding safe and secure exit options based on their specific circumstances and in contacting credit reporting agencies. Timeshare foreclosures may be prevented, and credit report damage may be reduced significantly.
Our seasoned attorneys will discuss all the options with you. Depending on your specific situation, they will recommend the most appropriate course of action and steer you clear of scams associated with credit repair.
For information about your specific case and to learn how Timeshare Defense Attorneys may be able to provide you with assistance disputing a timeshare credit on your credit report, don’t hesitate to get in touch with us today to schedule a free consultation.
