You've finally reached your breaking point. The maintenance fees that started at $800 are now approaching $1,500. The resort you once loved has become a financial burden you can't escape. You're ready to cancel your timeshare—but then that terrifying thought creeps in:
The Big Fear
"What if cancelling my timeshare destroys my credit score?"
If this fear is keeping you trapped in a contract you never wanted, you're not alone. At Bridge Transfers, we hear this concern every single day from timeshare owners across the country. And here's the truth that timeshare companies don't want you to know: properly cancelling your timeshare and letting it go to foreclosure are two completely different things with completely different outcomes for your credit.
This article will give you the facts—backed by industry data and real-world experience—so you can make an informed decision about your financial future.
The Real Credit Killer: Foreclosure vs. Cancellation
Let's address the elephant in the room: Yes, a timeshare foreclosure can devastate your credit score. According to financial experts, a foreclosure typically drops your FICO score by 100 to 300 points and stays on your credit report for seven years. If you have excellent credit in the 750+ range, you could see an even more severe impact.
But here's what many people don't realize: foreclosure and professional cancellation are not the same thing.
What Happens During a Timeshare Foreclosure
When you simply stop paying your timeshare bills and hope the problem goes away, here's what typically unfolds:
30-Day Late Payment
Your timeshare company reports the delinquency to credit bureaus. Your score begins to drop.
60-90 Day Delinquency
Additional negative marks accumulate. Collection calls begin.
Account Sent to Collections
The debt is sold to a collection agency, creating another negative mark on your credit report.
Foreclosure Filed
Because many timeshare loans are categorized as mortgages, this can appear as a mortgage foreclosure on your credit—the most damaging type of delinquency.
Deficiency Judgment
In some states, the developer can sue you for the difference between what you owed and what they recovered at the foreclosure sale.
This is the nightmare scenario—and it's completely avoidable.
The Truth About Professional Timeshare Cancellation
When you work with a legitimate, attorney-backed timeshare cancellation service like Bridge Transfers, the process looks entirely different. A proper cancellation aims to terminate your contract legally and completely—often without any negative credit impact whatsoever.
How Legitimate Cancellation Protects Your Credit
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Contract Review for Legal Violations: Our affiliated attorneys examine your original purchase for misrepresentation, fraud, or violations of consumer protection laws. If violations are found, these become the legal basis for contract rescission.
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Direct Developer Negotiation: Rather than simply walking away and hoping for the best, professional cancellation involves formal legal communication with the developer. This often results in a clean release with "account closed in good standing" status.
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Proper Documentation: You receive official release letters confirming your obligations have ended—documentation that protects you if any issues arise with credit reporting.
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Credit Monitoring Guidance: Legitimate companies help you understand what to watch for on your credit reports during and after the process.
"The key difference? Foreclosure is something that happens TO you when you abandon your responsibilities. Cancellation is a strategic, legally-supported process that terminates your contract properly."
The Hidden Cost of Doing Nothing
Many timeshare owners are so paralyzed by credit score fears that they continue paying for something they'll never use. Let's look at what that fear actually costs you.
According to the American Resort Development Association's 2025 industry report, average timeshare maintenance fees jumped to $1,480 per interval in 2024 —a staggering 17.5% increase from just the year before. And nearly half of all resorts plan to raise fees by 10% or more in the coming years.
Let's do the math on what staying "safe" really costs:
That's $44,000 spent on something you don't use, don't want, and can't sell—all because of a fear about credit scores that may not even be accurate for your situation.
Meanwhile, maintenance fees now make up a remarkable 83% of timeshare resort operating revenues. The industry has a powerful financial incentive to keep you afraid and paying.
What Your Financial Advisor May Not Know
When clients tell us they need to "talk to their financial advisor first," we always encourage it. But here's what we've learned: most financial advisors have limited experience with timeshare-specific situations.
Your advisor may not know:
- How timeshare contracts are structured and what legal grounds may exist for cancellation
- The difference between developer deed-backs, resale attempts, and legal cancellation —each with different credit implications
- That timeshare resale values have collapsed —the average resale price is 30-50% below retail, and most timeshares have essentially zero market value
- How state laws regarding timeshare consumer protections may apply to your specific contract
- That perpetual contracts can be inherited, potentially passing this burden to your children
We recommend bringing this article to your financial advisor and having an informed conversation. Or better yet, schedule a free consultation with Bridge Transfers first so you can discuss your specific situation with experts who understand timeshare law.
Why Bridge Transfers Is Different
The timeshare exit industry has earned a troubled reputation—and rightfully so. The FBI reports that from 2019 to 2023, nearly 6,000 victims lost close to $300 million to timeshare exit scams. The Better Business Bureau consistently flags timeshare scams as one of the most troubling types of consumer fraud.
At Bridge Transfers, we've built our business on being everything those scam companies aren't:
Attorney-Backed Legal Process
We don't just "negotiate" with developers—our affiliated law firm handles the legal work when needed. This means your cancellation is built on solid legal footing, not empty promises.
The Bridge Transfers $1,000 Guarantee
We're so confident in our process that we put our money where our mouth is: If we can't cancel your timeshare, we'll pay you $1,000. That's not a refund—that's a guarantee that we'll get the job done.
13+ Years of Industry Experience
Our team has been helping timeshare owners escape their contracts for over a decade. We've seen every type of contract, every developer tactic, and every legal loophole. That experience means faster results and better outcomes for our clients.
Credit Protection as a Priority
Unlike companies that tell you to "just stop paying," we focus on cancellation methods that protect your credit score. Our goal is to free you from your timeshare without the financial collateral damage.
How to Spot a Timeshare Exit Scam
Before you work with any timeshare exit company, protect yourself by watching for these red flags:
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Unsolicited Contact: Legitimate companies don't cold-call timeshare owners or claim to have a "buyer waiting."
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Pressure Tactics: High-pressure sales presentations, "today only" deals, and fear-based messaging are major warning signs.
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Guaranteed Quick Exits: Anyone promising to cancel your timeshare in "weeks" is likely lying. Legitimate cancellation takes time.
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Advice to Stop Paying Immediately: This is a recipe for foreclosure, not cancellation.
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No Clear Contract or Refund Policy: Legitimate companies provide written agreements with clear terms.
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No Verifiable Track Record: Check BBB ratings, look for real reviews on third-party sites, and verify the company has a real physical address.
Taking the First Step
Here's what we know after helping thousands of timeshare owners:
The fear of credit damage keeps far more people trapped than actual credit damage ever does.
Every month you wait, you're paying maintenance fees on a property you don't want. Every year that passes, those fees climb higher. And the longer you own the timeshare, the more complicated your eventual exit may become.
The truth is simple: with proper legal guidance and an experienced team, most timeshare owners can cancel their contracts without significant credit impact. The question isn't whether you can get out—it's whether you're ready to stop letting fear keep you paying for something you'll never use.
Ready to Learn Your Options?
Bridge Transfers offers a free, no-obligation consultation to review your specific situation. During this call, we'll:
- Review your timeshare contract and purchase circumstances
- Explain your cancellation options and potential credit implications
- Answer any questions you have—including those your financial advisor couldn't
- Provide honest advice, even if that means telling you cancellation isn't the right path
Remember: If we can't cancel your timeshare, we'll pay you $1,000. That's our commitment to you.