View Full Version : Financing question
03-16-2002, 09:53 AM
Do you know or have you ever --
Financed a resale using a credit card? How about using the CC for purchase through DVC? There are some good cc rates out there, much less than TS financing.
What would you say is the advantage or disadvantage of this route?
03-16-2002, 09:57 AM
The only disadvantage is that the interest on the cc would not be tax deductible, as it would be with a mortgage loan thru DVC and the cc rate is not likely a fixed rate for the life of the loan.
You can certainly get some great rates now and even get FF miles with many cards.
03-16-2002, 10:05 AM
I got a CC offer recently with this rate. Isn't the DVC rate about 10.5%?
03-16-2002, 11:28 AM
I'm not an expert on financial matters but I believe that the interest calculation is different between a DVC loan and a credit card loan. Simple interest vs. interest compounded daily perhaps. Maybe someone could expand on this . . . it might make the DVC loan more attractive.
03-16-2002, 11:31 AM
Careful with credit card rates and read the fine print. Often the rate is good a few months as long as you pay your bill promptly and on time - and I've gotten three unexpected checks in the past few years from lawsuits where the rates were jacked up because the company was making sure they didn't cash the check on time. So the first month you pay the low rate, and the second time they jack it up to 19% and tell you that you were late with your payment. Also, make sure you get the bill paid off before the rate skyrockets - that's how these companies make their money.
But if you stay on top of it, pay it off promptly, and watch for (and call them on) and unexpected raise in the interest rate - they are practically free money - I have offers around here for 0% for six months.
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