Timeshare ownership can be a dream come true, giving you access to beautiful vacation properties. However, the financial burden and lack of flexibility can sometimes turn this dream into a nightmare. If you’re considering cancelling your timeshare contract but are worried about the impact on your credit score, this comprehensive guide will provide you with the necessary steps to successfully navigate this process and safeguard your credit.

Understanding Your Timeshare Contract

The first step in cancelling a timeshare without harming your credit is to thoroughly understand your contract.

Terms and Conditions

Your timeshare contract outlines your rights and responsibilities, as well as those of the timeshare company. It’s essential to familiarize yourself with these terms and conditions, as they will dictate how you can legally exit your agreement.

Cancellation Policies

Most timeshare contracts contain a clause detailing the cancellation process. This clause will specify whether you can cancel your contract, under what circumstances, and any associated penalties.

The Right of Rescission

The right of rescission, also known as the “cooling-off” period, is a crucial concept to understand when trying to cancel a timeshare without hurting your credit.

What is the Right of Rescission?

The right of rescission allows you to cancel certain contracts within a specific timeframe without penalty. For timeshares, this period varies from state to state but is typically between 3 and 15 days.

Exercising Your Right of Rescission

If you’re still within the rescission period, you can typically cancel your timeshare by sending a written notice to the timeshare company. Be sure to send it through certified mail to have a record of the transaction.

Cancelling Your Timeshare After the Rescission Period

Cancelling your timeshare after the rescission period is more complicated and could potentially impact your credit score.

Negotiating with the Timeshare Company

One way to cancel your timeshare after the rescission period is to negotiate directly with the timeshare company. Some companies may offer a “buy-back” program or allow you to sell your timeshare back to them.

Selling Your Timeshare

Another option is to sell your timeshare. However, the resale market for timeshares can be challenging, and you may not recoup all the money you’ve invested.

Protecting Your Credit During Timeshare Cancellation

Protecting your credit during timeshare cancellation comes down to avoiding default and maintaining open lines of communication with your timeshare company and any lenders.

Avoiding Default

Defaulting on your timeshare payments can seriously damage your credit score. If you’re struggling financially, it’s essential to communicate with your timeshare company or lender before missing a payment.

Communicating with Your Timeshare Company and Lenders

Maintaining open communication with your timeshare company and any lenders is crucial during the cancellation process. They may be able to offer solutions or work out a payment plan that won’t negatively impact your credit.

Seeking Legal Help for Timeshare Cancellation

Given the potential complexities of timeshare cancellation, it can be beneficial to seek legal help.

When to Seek Legal Help

Consider seeking legal help if:

  • You’re outside the rescission period and your contract does not clearly outline a cancellation process.
  • You believe you were misled or pressured into signing the timeshare contract.
  • The timeshare company is unresponsive or refuses to acknowledge your cancellation request.

How a Lawyer Can Help

A lawyer can help you understand your contract, advise you on your rights, negotiate with the timeshare company on your behalf, and represent you in court if necessary.


Cancelling a timeshare without ruining your credit is a delicate balancing act, but with careful planning, open communication, and possible legal assistance, it can be achieved. Understanding your contract, exercising your right of rescission when applicable, negotiating directly with your timeshare company, and maintaining timely payments are all critical steps in this process. Remember, protecting your credit should always be a priority – even when escaping the confines of an unwanted timeshare.