Timeshare Loans

Whether you’re looking to buy a timeshare in Orlando or Oahu, you may need financing to cover your purchase. Timeshare salespeople often offer timeshare loans at the end of a sales pitch, but these loans can charge high interest rates and fees. 

To find a more affordable option, you might explore unsecured personal loans, home equity loans, or another financing strategy instead. Here’s a look at some of the ways you can finance the purchase of a timeshare.

What is a timeshare loan?

A timeshare loan is any loan used to purchase a timeshare. The loan can come from the lender that the timeshare salesperson recommends or a third-party lender.

While timeshare sales teams often promote specific loans, these options can have high interest rates—17.9% to 20% or higher—and long repayment terms.

Personal loans, by contrast, can come with rates starting around 7% or 8% and repayment terms from one to seven years or longer. If you have strong credit or a creditworthy cosigner, you could access a lender’s best rates and avoid loan fees, such as an origination fee. 

If you decide to purchase a timeshare, research and compare a few personal loan lenders to ensure you get the best rate possible.

Best timeshare loans

Your timeshare salesperson may offer simple financing options on the spot, which can be enticing because of the convenience. Rather than shopping around or delaying your purchase, you can complete the transaction and lock in any incentives that are on the table. 

However, these lenders may not be your most affordable option, so it’s worth comparing them with alternatives. Here are our four top options for personal loans you can use to buy a timeshare. 

Lender	Best for
Credible1	Marketplace
LightStream	Excellent credit
SoFi	Good credit
Upgrade	Fair credit

Credible: Best marketplace

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LendEDU rating: 5 out of 5

• Large network of lenders 
• Streamlined prequalification process 
• Flexible credit score requirements 

Credible is an online loan marketplace that makes it easy to compare personal loan offers from multiple lenders at once. It lets you check your rates through prequalification, which doesn’t obligate you to a specific lender or impact your credit score. 

Since Credible partners with multiple lenders, it can find matches for borrowers with a variety of credit scores. You can find personal loans from as little as $1,000 to as much as $200,000 with rates from 7.49% to 35.99% APR. 

LightStream: Best for excellent credit

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LendEDU rating: 4.8 out of 5

• Rates between 7.49% and 25.49% APR
• Funds are available as soon as the same day
• Must have a good-to-excellent credit score

LightStream offers timeshare loans to customers with good-to-excellent credit scores. Ranked as LendEDU’s best overall personal loan partner, the company offers low rates and a program to beat the rate a competitor offers you by 0.10 percentage points.

You can borrow between $5,000 and $100,000 and pay off your loan over two to seven years. Lighstream also doesn’t charge an origination fee and offers a 0.50% discount on your interest rate for using autopay.

On the downside, Lightstream doesn’t offer the option of prequalifying for a personal loan online. You’ll have to submit a full application to see your loan options. 

SoFi: Best for good credit

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LendEDU rating: 5 out of 5

• High loan amounts up to $100,000
• No loan origination fees 
• Unique member benefits, such as financial planning 

SoFi funds personal loans from $5,000 to $100,000 with repayment terms from two to seven years. It doesn’t charge origination fees, though you can opt to pay one up to 7% in exchange for a lower interest rate. 

SoFi caters to good-credit borrowers and generally looks for a credit score of 680 or higher. You can check your rates online through prequalification and get your loan funds as quickly as the same day. 

Upgrade: Best for fair credit

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LendEDU rating: 4.9 out of 5

• Rates between 8.49% and 35.99% APR
• No prepayment penalties
• Check your rate without affecting your credit

Upgrade offers personal loans that can be used to pay for timeshares. The credit minimums are lower than those of many other lenders, making Upgrade a good option for borrowers with poor credit history.

However, you will be subject to an origination fee that ranges from 1.85% to 9.99% of your loan amount. Upgrade offers personal loans between $1,000 and $50,000 with repayment terms from two to seven years. 

Should I use timeshare financing? 

According to the American Resort Development Association, the average cost of a timeshare is $23,940. Given this high price tag, you may be wondering whether you should use timeshare financing. 

You have two main options for timeshare loans: a recommended loan from the salesperson or a personal loan from a lender of your choice. The loan a salesperson offers may be convenient, but it probably isn’t the cheapest. Shopping around is always a wise move, even if it takes a bit longer.

Here are some scenarios where timeshare financing could make sense, along with some circumstances where a timeshare loan might not be right for you. 

Consider timeshare financing if …	Don’t consider timeshare financing if …
✅ You have fair or good credit	❌ You’re stuck with an unaffordable interest rate
✅ You’ve shopped around and compared your options	❌ You’re dealing with high-pressure sales tactics
✅ You have a solid plan for repayment	❌ You have unstable or unpredictable income
✅ You can afford additional timeshare costs	❌ You haven’t budgeted for additional fees
✅ You’ve done your research	❌ You haven’t read the fine print

Here are some instances when timeshare financing could be a good fit.

✅ You have fair or good credit 

Having strong credit will make it easier to find an affordable loan with a low interest rate and few fees. Most personal loan providers require that you have fair credit or better for loan approval. 

✅ You’ve shopped around and compared your options

Shopping around with multiple lenders can help you find the most affordable loan. By putting in this legwork upfront, you could pay less in interest and fees over the life of your timeshare loan. 

✅ You have a solid plan for repayment

Before taking on any kind of debt, make sure you’re confident about your ability to pay back the loan. Use a calculator to estimate your monthly payments, and review your budget to see whether you need to make any adjustments. 

✅ You can afford additional timeshare costs

Along with purchasing the timeshare, you may need to pay annual fees and maintenance expenses. Make sure you’re prepared to cover these extra costs before taking out a timeshare loan. 

✅ You’ve done your research 

Finally, timeshare financing could make sense if you have a clear understanding of your loan’s rates, fees, and repayment schedule. Make sure you’ve also done your research on the terms of your loan and your timeshare. 

Conversely here are some scenarios where timeshare financing might not make sense for you.

❌ You’re stuck with an unaffordable interest rate 

Personal loan rates can go as high as 36% APR for bad credit borrowers, as well as come with loan origination fees up to 10% or so. If you’re facing high rates and fees, a timeshare loan may not be worth the cost. 

❌ You’re dealing with high-pressure sales tactics 

When traveling, you might get enticed to attend a timeshare sales presentation in exchange for free perks. The salesperson may try to push a loan on you at the end of their pitch, but you should never rush into taking on debt. 

Taking the time to shop around and find the best loan offer could save you a significant sum on your timeshare loan. 

❌ You have unstable or unpredictable income

An unstable income can make it difficult to afford the regular payments that come with a timeshare loan. Missing payments can rack up late fees and damage your credit. The timeshare association could also foreclose on your share of the property. 

❌ You haven’t budgeted for additional fees

As mentioned, the initial cost of the timeshare may not be your only expense. Your timeshare could become a major financial burden if you’re caught unawares by additional maintenance costs and other fees. 

❌ You haven’t read the fine print 

If you’re unclear on how the timeshare works or what loan repayment requires, take some time to do your research before you borrow. Timeshares can be a complicated arrangement, so you want to be crystal clear on what you’re purchasing, as well as the loan you’re using, before signing any paperwork. 

Alternatives to timeshare loans

Timeshare loans seem like an accessible way to own a dream vacation property, but it’s wise to consider alternative financial products. These alternatives can offer significant advantages, including lower costs and increased flexibility. They might serve as a better avenue to finance your ideal vacation.

Savings

Relying on savings can provide you with a sense of financial freedom. Unlike timeshare loans, which come with interest, savings do not incur additional costs over time. Using savings often means spending less, but it requires disciplined budgeting and might take years before you can afford your vacation property.

Home equity loan or line of credit 

By leveraging the equity in your home, you can secure funds to finance your timeshare. This option can offer lower interest rates than timeshare loans. But if you default on payments, the lender could seize your home. It may also involve setup costs and rigorous credit checks.

Timeshare rental

If you don’t vacation too often, a timeshare rental may suit you better. It can be more budget-friendly and lacks the long-term financial commitment of a timeshare loan. Of course, availability may not always align with your vacation plans.

Pool resources with friends or family 

Pooling resources with friends or family offers a shared ownership approach, reducing individual costs and commitment compared to a timeshare loan. However, it demands mutual understanding and contractual clarity to avoid future disputes.

Can you refinance a timeshare loan?

Refinancing a timeshare loan is possible. When you refinance a loan, you take out a new loan in its place, ideally with a better interest rate. A couple ways to refinance a timeshare loan are: 

• Personal loan: Many lenders provide personal loans for debt refinancing and consolidation. Some lenders will pay off your creditors directly, while others will send the funds to you to pay off your loan. Once you’ve paid off your original timeshare loan, you can focus on paying back your new personal loan. That said, you’ll need to check with the specific lender to see if refinancing a timeshare loan is an acceptable use of your personal loan. 
• Home equity loan or line of credit: Another option is tapping into your home’s equity with a home equity loan or HELOC. You can use the amount you withdraw to pay off your timeshare loan. Since your home secures home equity loans and lines of credit, they may come with competitive interest rates. However, you risk losing your home if you over-borrow and can’t pay back the debt. 

Before refinancing your timeshare loan, make sure to compare your new loan’s terms with your current one. Using a loan calculator can help you estimate your monthly payments and long-term interest costs. 

If you can qualify for a better interest rate, you could save on interest and potentially make your monthly payments more affordable. However, tapping into your home equity could put your property at risk if you can’t afford repayment. 

You may also have to pay loan origination fees or closing costs, which would eat into your savings. If you can afford it, you might consider paying off your timeshare loan early to save on interest and get out of debt faster.