Can A Timeshare Hurt My Credit Score?
If you go through a timeshare foreclosure, your credit score probably could drop past the point of no return. Your previous score does affect how many points your new score drops. Nevertheless, a timeshare foreclosure can be deadly if you’re not careful.
Your credit score is more complicated than you may think. Once a timeshare is added to your credit, your score can be very chaotic if you are not careful. Timely maintenance fees won’t improve your credit score unless your timeshare developer reports to major credit bureaus. The ugly truth is that timeshares can stay on your reports for a very long time. Some foreclosures can remain on your account for 7 – 10 years.
According to FICO, a foreclosure could lower a person’s credit by 100 points or more. And even if the developer doesn’t report your foreclosure to a credit bureau, it will still become a public record. Rebuilding your credit can seem like forever. Luckily for you, our team has composed some helpful tips to guide you if your credit score was affected by a timeshare.
How to Fix Your Credit by Yourself
Bad credit can remain on your report for 7-10 years, and there’s no quick way of fixing it. Credit factors such as missed or late payments, bankruptcies, sent to collections, or in this case, a timeshare foreclosure can genuinely put your credit score in jeopardy. Below are a couple of steps you can take to start rebuilding your credit score on your own.
- Improve Your Payment History
Maintaining a “current” status on your payments will always have a positive impact on your score. The more missed payments that you, the more these negative marks will drive down your credit score.
- Be Cautious of New Credit Accounts
Opening numerous credit accounts within a short period could drop your credit score as well. Stay in control, open credit lines at a steady pace.
- Take Into Consideration the Number of Accounts
Multiple accounts, all with debt, can drastically lower your credit score as well. You should start paying some of these accounts off. However, the accounts in good debt standings can be beneficial if you leave them open and pay them off with time.
- Credit Utilization Ratio
Your credit utilization ratio is the sum of all your debt, divided by the total credit, then multiplied by 100 to get a percentage. The lower the credit utilization ratio, the less negative impact it will have on your score. In other words, keep your balances low.
- Stay In Control
You should start with knowing what is on your credit report. This will give you a better idea of the areas you need to improve in. Also, you can catch any errors the credit bureau may have made. And do not miss any payments.
How Long Does Credit Repair Take?
Disputing information on your credit report can take up to 30 days for the investigation. Any disputes that the credit bureau deems valid will automatically remove this information from your report. Updating your account status after this phase in the process can also take 30 days or more.
How To Get Extra Help With Credit Repair
Credit Repair companies’ roles are to dispute any negative information on your credit reports. The Credit Repair Organizations Act (CROA) is a federal law that became effective on September 30, 1996, due to many consumers who were victims of a credit repair scam.
The law states credit repair service companies:
- Cannot take any up-front fees until they have completed the services they promise.
- Have to provide its customers with a written contract.
- Cannot ask or suggest that you mislead credit reporting companies about your accounts.
- Cannot knowingly make deceptive or false claims about their services.
- Cannot ask you to sign anything that mentions you are forfeiting your rights under CROA.
Credit repair companies usually charge a monthly fee for their services. In some cases, some companies charge a flat fee for each item they delete an item from your report. A typical monthly subscription can range from $75-$90 per month, but it does depend on the company. Flat fees to remove items from your report can start at $50 per item.
Keep in mind credit repair companies cannot have accurately reported information, such as late payments, removed. Most credit repair companies don’t have any special privileges or access to the credit bureaus, which is why the credit repair company we would recommend is US Credit Bureau.
Remember, time is running out, and each day that passes can be crucial to your credit score. US Credit Bureau has a strong track in the credit repair industry and has had much success with timeshare owners affected by a timeshare foreclosure. To learn more about US Credit Bureau, click here.
Still, everyone’s situation does vary. This is why we recommend you always reach out to us to help you find the best solution to your timeshare problems. Remember, the sooner you act, the sooner your freedom begins!