Timeshare Loans and Refinancing
Timeshares can be expensive so you may have to borrow money to buy one. Timeshare salespeople often pitch lenders you can borrow from, but you could potentially qualify for a better timeshare loan by comparing lenders online.
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Timeshares are a ubiquitous aspect of beach towns and v brunches. Many resorts will even offer you free perks if you listen to a timeshare pitch. Typically, these pitches involve a hard sale, during which you’re presented with a one-time opportunity to buy a time-share on the spot.
The problem is, timeshares aren’t cheap, and most would-be timeshare owners aren’t prepared to put down thousands of dollars at the end of a sales pitch. People selling timeshares often refer you to partner lenders to solve this problem, but these lenders don’t always offer good rates.
Fortunately, you don’t have to take out a timeshare loan from the lender the salesperson recommends. There are alternative ways to finance the purchase of a timeshare—or to refinance an existing timeshare loan—which we’ll explain in this guide.
In this guide:
- What is a Timeshare Loan?
- 3 Lenders That Offer Timeshare Loans
- Pros & Cons of Timeshare Loans
- Alternatives and Refinancing Options
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 from a third-party lender.
The loans provided by lenders that accompany timeshare sales teams often come with very high interest rates and long repayment terms.
Private loans, by contrast, can come with lower rates and more flexible terms—if you qualify. Personal loans can be used either to buy or refinance a timeshare.
So if you’ve decided you want to purchase a timeshare, you should research and compare a few personal loan lenders offering timeshare loans to make sure you don’t get stuck with a bad rate.
3 Lenders Offering Timeshare Loans & Refinancing
Virtually any personal loan can be used as a timeshare loan, making them a good option to consider. The following companies are all great choices for getting a loan for a timeshare.
LightStream
Rates (APR)
5.95% – 19.99%*
with AutoPay
Loan Amounts
$5,000 – $100,000
Credit Score
660+
LightStream offers timeshare loans and refinancing 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 in which they will beat the rate a competitor offers you by 0.10 percentage points.**
- Credit score category: Excellent, good
- Soft credit pull to check rates: Not available
- Deposit time: As soon as the same day
- Origination fee: 0%
- Late fee: None
- Discounts: 0.50% interest rate reduction for enrolling in autopay
- Repayment terms: 24 – 84 months***
Upgrade
Rates (APR)
7.99% – 35.97%
Loan Amounts
$1,000 – $35,000
Credit Score
620+
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.
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As soon as the next day
- Origination fee: 2.9% – 8%
- Late fee: $10
- Repayment terms: 36 or 60 months
Upstart
Rates (APR)
8.41% – 35.99%1
Loan Amounts
$1,000 – $50,0002
Credit Score
600+
Upstart is an online lending platform that partners with banks to provide personal loans that can be used for almost anything. Upstart’s lending model considers education, employment, and many other variables when determining eligibility.3 This model leads to 27% more approvals and 16% lower rates than traditional models.4
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As fast as one business day
- Origination fee: 0% – 8%
- Late fee: $15 or 5% of payment
- Repayment terms: 36 or 60 months
Pros & Cons of Timeshare Loans
Pros
- Timeshare salespeople work with lenders familiar with the timeshare purchase process who are willing to provide loans large enough to finance vacation ownership on the spot.
- You can apply for a timeshare loan directly from a lender associated with the sales team pitching the time share. This way, there’s no delay in securing timeshare financing and finalizing your purchase.
- A long repayment timeline generally means that monthly payments are affordable.
Cons
- Timeshare loans from the salesperson-preferred lender often have high interest rates.
- High interest rates and a long repayment timeline can cost you thousands of extra dollars over the life of the loan.
- Timeshares often aren’t the best investment—and they become even more costly if you take out an expensive loan.
Alternatives and Refinancing Options
Because timeshare loans can be very expensive, many people who want to buy timeshares would be better off looking for alternatives. Fortunately, there are a few financing options that may come with lower interest rates and fewer maintenance fees.
Personal loans and home equity loans are two good alternatives to a timeshare loan. If you already have an expensive timeshare loan, you can also refinance your timeshare loan to reduce your interest rate or monthly costs.
Unsecured Personal Loans
Unsecured personal loans do not require you to put down any collateral, so you aren’t putting any assets at risk. You do need to meet certain requirements in order to obtain an unsecured loan.
Loan requirements vary by lender, but typically you’ll need a credit score of at least 580 and will have a choice of many more lenders if your score is 640 or higher.
The amount you can borrow will also vary by lender, but is usually between around $5,000 and $40,000—although some allow you to borrow much more and others have lower minimums.
Check out our list of the best personal loan lenders to start comparing rates.
Home Equity Loans
Home equity loans are another alternative for buying or refinancing a timeshare. But you take a huge risk if you use a home equity loan since these loans are secured by a lien on your home. This lien helps you score lower rates, but you could lose your house if you can’t make payments.
Loan requirements for home equity loans also vary by lender, but you will usually need a credit score of at least 620. You can borrow larger amounts with home equity loans, with the maximum loan amount based on the value of your home.
Some lenders allow you to have combined loan balances with your first mortgage and home equity loan equaling 100% of your home’s value. Others have lower loan-to-value limits.
Check out our list of the best home equity loans to review your options or check out some other common uses of home equity loans.
Ready to apply for a timeshare loan? Check out our top-rated partner, LightStream.
Rates (APR)
5.95% – 19.99%*
with AutoPay
Loan Amounts
$5,000 – $100,000
Credit Score
660+
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
**LightStream will offer a rate .10 percentage points lower than the rate offered on any competing lender’s unsecured loan provided that you were approved for that lower rate (with the same loan terms offered by LightStream) no later than 2 p.m. Eastern time two business days prior to loan funding. The Rate Beat Program excludes secured or collateralized loan offers from any lender, and the competitive offer must be available to any customer with a similar credit profile. Terms are subject to change at any time.
If you believe you have been approved by another lender for a lower qualifying rate, contact LightStream customer service. We will work with you to determine your Rate Beat eligibility and obtain the necessary documentation.
***Payment example: Monthly payments for a $10,000 loan at 5.95% APR with a term of three years would result in 36 monthly payments of $303.99.
1The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
2Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.
3Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan.
4Approval numbers compare the 2020 loan approval rate by the Upstart model and a hypothetical traditional credit decision model. The APR calculation compares the two models based on the average APR offered to borrowers up to the same approval rate. The hypothetical traditional model used in Upstart’s analyses was developed in connection with the CFPB No Action Letter access-to-credit testing program, is trained on Upstart platform data, uses logistic regression and considers traditional application and credit file variables.
