The Pros and Cons of Timeshare Loans

timeshare loans

Timeshare loans are one of the most popular financing options for new timeshare owners. They’re often provided on the spot at timeshare sales pitches by lenders who work with the developers. But they can be expensive, and you should weigh your options before getting one.

Most timeshares don’t come with actual ownership of the resort or property, and they typically depreciate in value over time. This makes it difficult for timeshare owners to sell them. That’s why many people choose to refinance their timeshare loans, which can save them money in the long run.

While the average cost of a timeshare is $20,170 and interest rates on these loans are typically a high 13.9 percent, there are several different ways to finance your purchase. For example, you can use a credit card to fund your timeshare purchase, but be aware that the interest rate may be higher than what you would pay with a personal loan.

You can also try to refinance your timeshare loan with a personal loan, which doesn’t require collateral and can often be easier for some people to qualify for. To see if you qualify, most lenders will review your credit score and income to determine how much you can borrow.

Alternatively, you can consider home equity loans. These loans can help you unlock equity in your primary residence and then use it to finance your timeshare purchase.

The downside of using a timeshare loan, however, is that these loans tend to have higher interest rates than other financing options, and they’re not always the best option in terms of repayment terms. This means you might be paying too much in interest, and you’ll have to pay it off quickly.

Another issue with timeshare loans is that they’re usually offered at extremely inflated prices. While they’re attractive in theory, they can be prohibitively expensive if you don’t have enough cash to cover your buy-in fees and annual maintenance costs.

In addition, if you don’t have excellent credit, these loans can be difficult to get and will often carry very high interest rates. For this reason, it’s important to research the interest rates and repayment terms of various financing alternatives before you meet with a timeshare seller.

Some people prefer to get a timeshare loan from the developer they’re buying from, but those aren’t always the best option for your situation. In fact, many timeshare sales teams have partner lenders that they recommend to their customers, but these lenders don’t typically offer the most competitive rates or terms.

Instead, you should work with a private personal loan lender that can provide you with the best loan terms and lowest interest rates for your particular situation. These private personal loans can be a good alternative to timeshare loans because they typically have lower interest rates and flexible repayment terms.

If you’re ready to get started, simply scroll down to the “Estimated Timeshare Finance Calculator” section of any timeshare listing page. Enter in all the details of your potential financing and click on the “Calculate Now” button to find out how much you’ll need to borrow.

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