When a person does not pay a debt that he owes, he risks suffering not just financial penalties from avoiding the debt, but facing damage to his credit rating, too. If a creditor reports the debt to a credit reporting agency, the agency may drop the person's score, as he will be viewed as less creditworthy. However, a canceled gym membership will usually not go on a person's credit report.
Credit Report
A person's credit report contains a record of all of their recent debts, both paid and unpaid. When a person fails to pay back a loan on time or does not pay a bill, and this account is reported to the credit reporting agency, then the person may see the debt appear on his credit report, causing his score to drop. This can happen in the case of a gym membership if the person agreed to pay for it and did not follow through.
Gym Memberships
The terms under which a gym membership is taken out will vary depending on the gym. Some gyms will require that people take out memberships for a set period of time, but allow them to pay in a monthly installment plan. Others, however, allow people to pay month-to-month for membership or pay for a long period of time in advance. If a person agrees to pay a certain amount for membership and does not, it may count against his credit score.
Cancellations
Whether a gym membership cancellation will count against a person's credit score depends on the terms of the cancellation. If a person cancels when cancellation is not a legal -- if he, in effect, refuses to pay an amount he previously agreed to pay -- then his debt may be reported to a credit reporting agency. However, canceling a normal membership, but paying what he agreed to pay to begin with, either by paying in advance or one month at a time, will have no effect on his score.
Considerations
Even if a person cancels a gym membership and leaves a sum of money unpaid, it will not always show up on his credit report. An unpaid debt will only show up on a person's credit report if the creditor reports it to a credit reporting agency. If the bill for the gym is small enough, the gym may not consider it worth their time to report it and instead just write it off.
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