It will not hurt your credit as long as you notify the company that you are canceling the contract. If you cancel a home security contract, then you will be charged a cancellation fee. This fee can be anywhere from $25 to $250 depending on the type of service that you cancel. You can also be charged a penalty fee if you cancel your service too early. This can be anywhere from $25 to $100. So canceling a home security contract can be expensive.