Asep
Lv 7
Asep asked in Business & FinancePersonal Finance · 6 months ago

Is it true that signing up for a gym destroys your credit?

5 Answers

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  • Judy
    Lv 7
    6 months ago

    Not unless you break your contract

  • 6 months ago

    Not immediately.  But you might not be able to cancel, and when you stop paying anyway, that destroys your credit.

  • ?
    Lv 7
    6 months ago

    Most ridiculous thing I have read on here today.

  • 6 months ago

    If it's true, it's a new one on me.

    What destroys credit is signing up to things, be that a gym, credit card, loan, rent even, and then not paying on time or missing payments.

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  • Anonymous
    6 months ago

    No. Not paying as agreed can destroy your credit.

    Many people think they can just stop paying at any time. That is rarely the case.

    Many gyms sell your contract to a lender so they get money upfront. Then its between you and the lender who bought the contract. 

    For example, if you agree to pay $39 a month for 2 years, they might sell your contract for $750 cash. Then the lender collects the $39x24=$936. If you don't pay, its like not paying for a credit card, it hurts your credit.

    There is a gym near me that is $29 a month but you have to give your card information and if you want to stop they require it in writing a month in advance. 

    Most gyms have a cash option where you can prepay at a discount for a year.

    When I was considering it recently, I looked around for free options and it turns out there is a free city owned gym near me. I could not go 24/7 but it is open 5 days.

    And they even have a basketball court. I used to get shots up and work out but I have not been since the pandemic. I heard its appointment only or something after being closed for several months.

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