Timeshares, in theory, offer an excellent way for your average Joe Briefcase to afford an enjoyable, high-end vacation with his family. In practice, however, timeshares often end up draining your savings account and leaving a permanent stain on your financial record. Those of you who have unfortunately experienced this first-hand are probably wondering how to improve your credit after getting burned by a timeshare.
Keep reading to find out our industry-insider tips and tricks on how to rebuild your credit post-timeshare. Don’t hesitate to call Primo Management Group today at (407) 627-1179 to learn more on how we can help.
Timeshares are a way to own vacation property that you can use once a year for a length of time. This is usually one to two weeks, though your specific length depends on your contract. Timeshares are notoriously emotional purchases. People hear the pitches of smiling salesmen and think to themselves “wow I can own part of a vacation property in X.”
Sometimes this is actually what ends up happening. Sometimes you invest in buying a timeshare, and you get to live happily ever after. Unfortunately, in many cases, things rarely go this smoothly.
You may buy a timeshare thinking that you can afford it, but due to rising management fees or other financial problems, find yourself staring down the barrel of more and more timeshares bills that you have no way of paying.
Canceling Your Timeshare
Keep in mind that if you act fast (i.e. within 7 days) you’re legally allowed to cancel your timeshare agreement, no questions asked. It’s sort of like an annulment. Things, however, get significantly more legally complicated after the 7-day “cooling off” period has expired.
Speaking of things get complicated, let’s take a look at how to improve your credit after getting scammed by a timeshare.
Timeshares and Your Credit
The first thing to understand about how to improve your credit after getting burned by a timeshare is that timeshares can dramatically impact your credit score in a variety of ways.
Most timeshares cost between $20,000 to $40,000 up front. Many people afford these large upfront costs via taking out a loan from the bank. These loans are usually very similar to mortgages.
In addition to the upfront costs, timeshare resort companies will usually charge annual maintenance or management fees that range from a few hundred dollars to several thousand. And this is where a lot of people get caught in a financial net. Yearly timeshare management fees are famous for increasing dramatically over time, and most timeshare contracts include language that effectively gives timeshare companies complete discretion on when and how much they want to raise these annual (or sometimes monthly) fees.
If you end up having trouble paying these fees, timeshare companies can report your missed payments the same way a missed mortgage payment would be reported to the credit agencies. And this, as you can probably imagine, can impact your credit score quite significantly.
So, when figuring out how to improve your credit after getting ripped off by a timeshare, it’s important to act proactively. One of the easiest ways to do this is to seek the help of timeshare cancellation experts. That’s where Primo Management Group enters the picture.
We’ve been fighting timeshare companies to help you escape their traps for years. We know what it takes to get out of a timeshare and, more importantly, we know what it takes to give you peace of mind. Call us today at (407) 627-1179 for a free consultation and find out why our clients love us!