Houston Credit Repair expert, Vanessa Perry explains the dangers of timeshares in the latest episode of Ask Impeccable below.
What Are The Dangers of Timeshares?
Timeshares used to be considered a bargain vacation for a minimum price. When the convenience of AirBnB came around timeshares became out dated. Timeshares are for those who want to share a vacation home with others. If you have a timeshare make sure you go through the proper procedures. If you do not terminate properly, be prepared to take the hit on your credit. When people try to get out of their timeshare early it can hurt their credit scores. Timeshares report on the credit report as a mortgage. Therefore, the timeshare can look like a foreclosure if not cancelled properly.
In order to terminate the timeshare it must be paid off. If the balance on the timeshare is not paid in full it can report on your credit as a foreclosure collection. Some companies say they can settle the debt of the timeshare or negotiate the debt owed. In fact, the company will collect their fee and settle the debt for less than the amount owed. The timeshare will remain on the credit negatively as a foreclosure. Late payments also appear as mortgage late payments. In other words if you do not pay off your timeshare be prepared for credit repair as well.
Houston Credit Repair
Seek for a reputable credit repair company such as, Impeccable Credit Services. We educate our clients about the ins and outs of credit. With over 20 years financial experience we can help with just about any credit problem. Impeccable Credit Services has been in business for over 17 years with physical locations. If you have any questions regarding your credit please feel free to give us a call anytime 713-378-1500.