Buying a timeshare has always involved some financial commitment—but now there’s another hurdle: passing a credit check.
In addition to paying upfront costs and ongoing maintenance fees, potential buyers may now be subject to credit screening, especially in resale situations. And this new requirement could impact not just buyers, but also current owners looking to sell.
Here’s what’s going on—and what it means for you.
Timeshare Transfers and the Credit Check Twist
According to the Timeshare Users Group (TUG), several timeshare resorts and management companies are beginning to require credit checks before ownership transfers are approved.
A recent example, shared on the TUG forum and newsletter, involved an eBay listing for a Paradise Island, Bahamas timeshare. The seller disclosed that:
“This resort does require a credit check prior to transfer. The new owner must have a minimum of a 600 credit score to qualify. Should the buyer not pass the credit check, they will receive a full refund immediately.”
Is the Credit Check Requirement Legal?
TUG members were split on whether this practice is legal—or even new.
Some suggested it’s only applicable to Right to Use (RTU) timeshares, where buyers don’t own the property itself but lease the usage rights. Others argued that deeded ownerships—which function more like real property—typically don’t come with such conditions unless explicitly stated in the original agreement.
According to a TUG moderator:
“This may be legal on an RTU ownership but not for a deeded ownership UNLESS it is in the original docs… If you have a deeded week they can require fees to be current, and in most states, charge a transfer or recording fee—but that’s about it.”
Bottom line: If your timeshare is deeded, requiring a credit check could be outside the scope of the resort’s legal authority—unless it’s clearly outlined in the ownership terms.
Why This Policy Is Emerging
This credit check trend seems to be a reaction to rising delinquency rates among timeshare owners. With the broader economy facing instability, many owners are prioritizing essential bills—like mortgage payments—over timeshare maintenance fees, which can run from several hundred dollars to over $1,500 annually.
To protect themselves, some resorts are trying to ensure that incoming owners will be more financially stable and less likely to default on future obligations.
How This Affects Timeshare Sellers
For sellers, this new policy poses yet another challenge. Selling a timeshare is already difficult due to low demand and a saturated market. Adding a credit screening requirement shrinks the pool of qualified buyers even more.
If the buyer doesn’t meet the credit criteria—even if they can pay in full—the deal could fall through, wasting time and effort for both parties.
Could It Impact Your Credit?
One concern among prospective buyers is whether the credit check itself might affect their credit score. While a soft inquiry won’t have any impact, a hard pull could lower your score temporarily, especially if you’re applying for multiple forms of credit at the same time.
If you’re simply browsing for a vacation property or looking for a good deal on a resale, the idea of a credit check—especially one that may affect your credit rating—could be enough to deter you altogether.
What Buyers Should Do
If you’re considering buying a timeshare, follow these steps:
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Ask about credit requirements up front—especially in resale situations
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Request a written copy of the policy outlining whether a credit check is required and how it will be conducted
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Clarify whether it’s a soft or hard credit inquiry
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Read the original ownership agreement to ensure any new requirements are enforceable
Final Thoughts: Be Informed Before You Buy
Timeshare ownership is already fraught with complications, from high fees to difficult resale conditions. Now that credit checks are being introduced, it’s more important than ever to read the fine print and know your rights.
Whether you’re buying a timeshare directly from a resort or through the secondary market, take the time to understand the terms, legal structure (RTU vs. deeded), and financial requirements before moving forward.
This isn’t just about whether you can afford the timeshare—it’s about whether the timeshare can afford you.
Image Alt Tag Suggestion:
Buyer reviewing timeshare agreement with credit check requirement highlighted
FAQs:
Why do timeshare companies require a credit check now?
Due to rising delinquency rates, resorts want to ensure that new owners are financially reliable and will keep up with maintenance fees and other obligations.
Is it legal to require a credit check for buying a timeshare?
It depends on the ownership type. For RTU timeshares, it may be legal. For deeded ownerships, it must be explicitly stated in the original agreement.
Will a timeshare credit check affect my credit score?
It depends on whether it’s a soft or hard inquiry. A hard credit check may cause a temporary dip in your credit score.
Can I still buy a timeshare if my credit score is below 600?
Possibly, but not at certain resorts with stricter transfer requirements. Always ask about credit score policies before making an offer.
How can I avoid unexpected requirements when buying a timeshare?
Work with a reputable resale agent or use resources like the Timeshare Users Group to verify policies, and always request documentation before committing.
