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 other financing options. Here’s a look at some of the ways you can finance the purchase of a timeshare.
Given how common timeshare scams are, we urge you to explore other ways to access your dream property instead of a timeshare. For example, explore purchasing a tiny home as an affordable way to have a second (or mobile) dwelling for getaways.
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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.
Credible
Why we recommend a Credible timeshare loan
Credible1 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 affect your credit score.
Since Credible partners with multiple lenders, it can find matches for borrowers with a variety of credit scores.
- Large network of lenders
- Streamlined prequalification process
- Flexible credit score requirements
- Origination fee of up to 12%
- No option to apply for joint loans
| Rates (APR) | 6.99% – 35.99% |
| Loan amounts | $1,000 – $200,000 |
| Repayment terms | 1 – 10 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: 580
- Minimum income: Not disclosed
- States: Loan partners may not be available in all states
Repayment terms
Credible loans have repayment terms ranging from one to 10 years. Some lenders may charge a prepayment penalty if you pay your loan off early.
Upgrade
Why we recommend an Upgrade timeshare loan
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 a less-than-perfect credit history.
However, you will be subject to an origination fee that ranges from 1.85% to 9.99% of your loan amount.
- Choose your monthly payment and loan term
- Joint applications accepted
- Loan funds may be available in as little as 1 day
- Smaller loan maximum limit
- 1.85% to 9.99% origination fee
| Rates (APR) | 8.49% – 35.99% |
| Loan amounts | $1,000 – $50,000 |
| Repayment terms | 2 – 7 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: 580
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
Upgrade loans have repayment terms from two to seven years, and your monthly due date is adjustable to fit your budget. A short-term financial hardship program is available if you’re temporarily unable to manage payments.
SoFi
Why we recommend a SoFi timeshare loan
SoFi caters to borrowers with good credit and generally requires a credit score of 680 or higher. You can check your rates online through prequalification and get your loan funds as soon as the same day.
SoFi personal loans don’t require an origination fee, though you can opt to pay up to 7% in exchange for a lower interest rate.
- No origination fees, late payment fees, or prepayment penalties
- Check rates in as little as 60 seconds
- Some borrowers may qualify for same-day funding
- Higher minimum loan amount
- Autopay discount is lower than what some lenders offer
| Fixed rates (APR) | 8.99% – 29.99% with all discounts |
| Loan amounts | $5,000 – $100,000 |
| Repayment terms | 2 – 7 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: 660
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
SoFi personal loans feature terms from two to seven years. If you enroll in autopay, you’ll get a 0.25% rate discount. There’s no penalty if you decide to pay your loan off early.
LightStream
Why we recommend a LightStream timeshare loan
LightStream offers timeshare loans to customers with good-to-excellent credit scores. Creditworthy borrowers can take advantage of its low rates and a program that lets you beat a competitor’s rate by 0.10 percentage points.
LightStream also doesn’t charge an origination fee and offers a 0.50% interest rate discount for using autopay.
- Rate match guarantee ensures that you get the best rate possible
- Same-day funding may be available
- Take advantage of a longer repayment term if you need lower payments
- No option to prequalify or check rates with a soft credit pull
- Minimum loan amount is $5,000
| Rates (APR) | 7.49% – 25.49% |
| Loan amounts | $5,000 – $100,000 |
| Repayment terms | 2 – 12 years |
Eligibility requirements
- Soft credit check? No
- Minimum credit score: 660
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
LightStream offers some of the longest repayment terms of any lender, giving you up to 12 years to repay your loan. You can pay your loan off early, without a prepayment penalty and rate discounts can help bring the cost of your loan down.
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, like 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.
Should I use timeshare financing?
According to the American Resort Development Association, the average cost of a timeshare is $24,170.
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 likely 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 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 |
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.
Recap of the best timeshare loans
About our contributors
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Written by Rebecca SafierRebecca Safier is a personal finance writer with years of experience writing about student loans, personal loans, budgeting, and related topics. She is certified as a student loan counselor through the National Association of Certified Credit Counselors.
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Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.
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Reviewed by Gail Urban, CFP®Gail Urban, CFP®, AAMS®, has been a licensed financial advisor since 2009, specializing in helping individuals. Before personal financial advising, she worked as a business financial manager in several industries for about 25 years.