Compare timeshare financing options in 2018 | finder.com
time share on the beach

How to finance a new timeshare

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Get the best deal for your new vacation share with our tips.

Buying a vacation home can be hard to justify, especially if you don’t have more than a few weeks each year to relax in it. But a timeshare is one way to take advantage of the perks of property away without covering the whole cost yourself.

Also called interval, fractional share-owned or vacation properties, timeshares may be synonymous for high-pressure sales pitches and hard sells. But the American Resort Development Association says they’re making a comeback.

Get in on the rebound with what you can expect to pay — and how you can finance one — before taking up a timeshare.

Credible Personal Loans

Our top pick: Credible

Quickly get personal loan offers from top online lenders.

  • Minimum Loan Amount: $1,000
  • Maximum Loan Amount: $100,000
  • Loan Terms: 2–7 years
  • One simple form
  • Must have good to excellent credit

    How can I pay for a new timeshare?

    Many timeshare companies offer on-site financing with their sales pitch. But it’s not your only option — and it’s often not your most competitive. The average timeshare loan comes with an interest rate of 14% over a 10-year term, but these rates can soar as high as 20% with some clubs.

    Before you let a rep convince you to sign up for a new loan, consider these savvy alternatives that can save you a bundle in the long run.

    Unsecured personal loan

    If you have strong credit, consider taking out a personal loan to pay for your timeshare. These loans don’t require collateral, and interest rates typically range from around 4% to 36%. Usually, you can borrow from $2,000 and $50,000, which covers many timeshares, though some lenders offer unsecured personal loans as high as $100,000.

    Look for a personal loan from your bank, credit union or online lenders. Banks and credit unions might offer even lower rates than those you’ll find online. But they can take time to process your application, and often with stricter eligibility requirements.

    Home equity loans

    For borrowers who already own a home — or a good part of a home — the equity you’ve built up becomes a borrowing option. Through a home equity loan, you can typically borrow between 80% and 95% of your home’s value.

    Because this loan uses your home as collateral, it’s often easier to qualify for than an unsecured personal loan. It also can come with more competitive rates. However, you run the serious risk of losing your home if you default.

    401(k) loan

    Borrowing from your retirement plan can be risky. If you can’t pay it back or you lose your job, you’ll pay hefty penalties for withdrawing from your retirement account before it’s due.

    But if you’re certain you won’t leave your job before you repay the loan, borrowing from your 401(k) could be an inexpensive financing option. With most 401(k) plans, you can borrow up to $50,000 and pay it back over five years with a variable interest rate of prime plus 1%. All interest you pay goes back into your 401(k) — though you won’t earn investment returns while you repay your loan.

    Credit cards

    Using a credit card might make sense if your timeshare is only a few hundred or thousand dollars. Credit cards also be useful for those annual maintenance and membership fees. If you think it’ll take you more than a few months to pay off, consider applying for a new credit card with a promotional 0% APR for the first six to 18 months. That way you won’t pay interest on your balance until the promotional period is up.

    Compare personal loan providers

    Rates last updated November 17th, 2018

    Reveal your potential loan offers and rates

    Answer two quick questions to filter the loan offers and get the best one for you.

    Select your credit score range

    I don't know my credit score

    Finally, select where you live.

    To get your credit score:

    Experian logo

    Experian is a leading provider of personal and business credit reporting. Find out your FICO score now for less than the cost of a cup of coffee.

    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Min. Credit Score Max. Loan Amount APR
    Monevo Personal Loans
    Quickly compare multiple online lenders with competitive rates depending on your credit score.
    550
    $100,000
    3.34% to 35.99%. (fixed)
    Credible Personal Loans
    Get personalized rates in minutes and then choose a loan offer from several top online lenders.
    Good to excellent credit
    $100,000
    4.99%–36% (fixed)
    LendingClub Personal Loan
    A peer-to-peer lender offering fair rates based on your credit score.
    660
    $40,000
    6.95% to 35.89% (fixed)
    SoFi Personal Loan Fixed Rate (with Autopay)
    No fees. Multiple member perks such as community events and career coaching.
    680
    $100,000
    6.99% to 14.87% (fixed)
    NetCredit Personal Loan
    Check eligibility in minutes and get a personalized quote without affecting your credit score.
    550
    $10,000
    34%–155% (Varies by state) (fixed)
    Marcus by Goldman Sachs Personal Loans
    Consolidate your debt or pay off large expenses with competitive rates and no fees.
    Good to excellent credit
    $40,000
    6.99% to 24.99% (fixed)
    Even Financial Personal Loans
    Get connected to competitive loan offers instantly from top online consumer lenders.
    580
    $100,000
    4.99%–35.99% (fixed)
    Avant
    Conveniently check your loan options without affecting your credit score.
    580
    $35,000
    9.95%–35.99% (fixed)
    OneMain Financial Personal and Auto Loans
    An established online and in-store lender with quick turnaround times. Poor credit is OK.
    Varies
    $30,000
    16.05%–35.99%* (fixed)

    Compare up to 4 providers

    How much does a timeshare cost?

    When it comes to timeshares, you often have three costs to consider: the purchase cost, the maintenance fee and the membership fee.

    Purchase cost

    This is the main expense when it comes to buying a new timeshare. Purchase costs can range anywhere from $500 to $40,000, though the average is around $10,000. How much you pay depends on factors like the type of building and its location and the time of year you’re purchasing to use it. Studio apartments in an inconvenient neighborhood probably won’t cost you as much as a resort timeshare, for example.

    The most popular weeks like Christmas or the Fourth of July — called “red weeks”— tend to be the most expensive. Weeks without as much demand — called “blue weeks” — are less expensive.

    Maintenance fee

    Most timeshares come with an annual maintenance fee that can range from $200 to more than $700 each year. This fee covers costs like housekeeping, utilities, weather-related repairs and other upkeep of a vacation home.

    Like with the purchase cost, maintenance fees are typically higher with larger timeshares, especially if it’s part of a resort.

    Membership fee

    Many of the major timeshare companies like Interval International charge an annual membership fee of around $90. If you need help exchanging your timeshare for something different, this fee can go up to $125 for that year.

    Don't forget the cost of going on vacation.

    Vacations can be expensive, even if you have an affordable place to stay. Americans spend an average $2,026 during their timeshare vacations — or about $592 per person — according a 2018 American Resort Development Association report.

    The top expenses? Eating out and flying in. To cut back on costs, consider a timeshare near your home, and plan on cooking a few meals in.

    5 tips for getting a good deal on a timeshare

    By knowing what to expect with a timeshare, you can find a legitimate property that works for you and your family.

    1. Don’t take the first offer. Even if it sounds like a good deal, there’s a chance an even better price is out there. Try to get a few offers before settling on one.
    2. Read customer reviews. A company might brag about its Better Business Bureau rating, but it won’t always reflect customer experiences. A few negative reviews isn’t necessarily a red flag, but if you notice patterns on the BBB, on Trustpilot and in forums, you might not want to work with that company.
    3. Know your state’s right-of-refusal law. Many states have laws that allow customers to back out of a timeshare within a stated time after making a purchase. Look out for companies that ask you to sign your contract in a different state than where your timeshare is located — they might be trying to get around state regulations.
    4. Read the contract and the fine print. What’s in your contract can shed light on you’re getting into far better than a sales pitch. A legal expert can help suss out red flags and answer questions about specific clauses.
    5. Check for scam alerts. The American Resort Development Association publishes a running list of timeshare scams to avoid online. The BBB and Consumer Financial Protection Bureau also issues warnings against scams. If you’re suspicious of an offer you’ve received, make sure it’s not on any lists.

    Bottom line

    It might be tempting to go for the timeshare loan that’s offered in your sales pitch. But you find more competitive rates and terms elsewhere, not to mention options that don’t involve financing at all.

    To get the strongest deal you’re eligible for, compare all options available to you against your costs. Learn more about personal borrowing in our comprehensive guide to personal loans.

    Frequently asked questions

    Image source: Shutterstock

    Anna Serio

    Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

    Was this content helpful to you? No  Yes

    US Personal Loans Offers

    Important Information*
    Credible Personal Loans

    Get personalized rates in minutes and then choose a loan offer from several top online lenders.

    Monevo Personal Loans

    Quickly compare multiple online lenders with competitive rates depending on your credit score.

    LendingClub Personal Loan

    A peer-to-peer lender offering fair rates based on your credit score.

    SoFi Personal Loan Fixed Rate (with Autopay)

    No fees. Multiple member perks such as community events and career coaching.

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy and Cookies Policy and Terms of Use.

    US Personal Loans Offers

    Important Information*
    Credible Personal Loans

    Get personalized rates in minutes and then choose a loan offer from several top online lenders.

    Monevo Personal Loans

    Quickly compare multiple online lenders with competitive rates depending on your credit score.

    LendingClub Personal Loan

    A peer-to-peer lender offering fair rates based on your credit score.

    SoFi Personal Loan Fixed Rate (with Autopay)

    No fees. Multiple member perks such as community events and career coaching.

    Go to site