Anyone with So-so credit get approved for financing?

[mamawanavacation]

I know it's a sensitive question, but I'm wondering if with 10% down we'd even get approved through Disney. How tough are they? If you care to respond, I appreciate it.

Thanks,
Jan

 

[poggs]

I know it's a sensitive question, but I'm wondering if with 10% down we'd even get approved through Disney. How tough are they? If you care to respond, I appreciate it.

Thanks,
Jan

They are about as easy as it gets. Half the time they dont even do a credit check. I believe this is because if you get behind by even one payment, your account is suspended until you are up to date. And if you get really delinquent, they just re-possess. There really is next to no risk for disney in financing.

 

[Amy&Dan]

Agreed, its pretty low risk as in no risk for Dinsey. I always get really nervous when I apply for credit always assuming I'll be declined (which has yet to happen but I have to worry about something). Our rep told me that its a very secure loan for Disney and that only a bankrupcy can really ruin your chances. It also does not show up on your credit. So if you do this and then apply for something else like a car it won't be on there to mess that up. Not sure about a mortgage though where they ask for bank statements that would show that payment being taken out every month. I am sure you'll be fine, I understand how nerve wracking the process is. But its worth it!

 

[Anal Annie]

I can't answer to the so-so credit thing but just wanted to suggest if you have a Home Equity line or something it's probably a lot lower interest rate than the Disney financing and of course you can deduct the interest.... Just a thought....Good luck!!

 

[mamawanavacation]

Thanks so much for your reply's. I really appreciate. You definately set my mind at ease.

 

[Amy&Dan]

I can't answer to the so-so credit thing but just wanted to suggest if you have a Home Equity line or something it's probably a lot lower interest rate than the Disney financing and of course you can deduct the interest.... Just a thought....Good luck!!

You can also deduct the interest with Disney financing. Our rate with Disney is 9.5% which I thought was very good. I think a home equity loan is great but only if you still have plenty of equity left over after you finance your DVC. I found out the hard way years ago, your home is your biggest and most important asset and its not always good to tie it up financing cars and the like. You never know what the real estate market will do and its good to have plenty of flexibility with what you owe if you need to move suddenly. And that will show up on your credit whereas financing thorugh Disney won't. They are both good options depending on the situation.

 

[Caskbill]

I have heard that in the past, if someone really had bad credit, then DVC wanted something like 20% downpayment instead of just the regular 10%.

 

[Anal Annie]

You can also deduct the interest with Disney financing. Our rate with Disney is 9.5% which I thought was very good. I think a home equity loan is great but only if you still have plenty of equity left over after you finance your DVC. I found out the hard way years ago, your home is your biggest and most important asset and its not always good to tie it up financing cars and the like. You never know what the real estate market will do and its good to have plenty of flexibility with what you owe if you need to move suddenly. And that will show up on your credit whereas financing thorugh Disney won't. They are both good options depending on the situation.

I'm not sure why Disney wouldn't report delinquent accounts to a credit bureau?! And of course I'm not suggesting to do something that would max out an equity line - but if one has some credit issues it might be better not to open another account if there's ample credit available on an equity line. For example, ours runs 1/4% below prime and when we bought our DVC membership last Dec. the "Preferred" Disney financing was running 10.75% for 5 -10 yr. terms which was a significantly higher interest rate. There was another finance sheet in the package that offered "Standard" financing and it was 14.25%. So as Caskbill indicated, they DO have different rate options depending on what you qualify for....both plans were still just 10% down tho. Now that the Fed has backed off prime a bit maybe Disney will drop their rates a little too.

Anyway, I wasn't trying to stir up anything, I was just trying to offer another idea to the OP as I saw on another thread where she has a pretty expensive trip already booked - those funds would go a long way toward a downpayment on a DVC membership!!

 

[covereddish]

Hey, Jan. I sent you a PM.

Also, I think you will be fine. The guide that helped us........we were asking about my sister possibly joining and he said that the credit thing is really not an issue, because they stay on top of it, and it's not a "possession" that you hold.

If you don't pay, you don't stay! Easy!

 

[Amy&Dan]

I'm not sure why Disney wouldn't report delinquent accounts to a credit bureau?! And of course I'm not suggesting to do something that would max out an equity line - but if one has some credit issues it might be better not to open another account if there's ample credit available on an equity line. For example, ours runs 1/4% below prime and when we bought our DVC membership last Dec. the "Preferred" Disney financing was running 10.75% for 5 -10 yr. terms which was a significantly higher interest rate. There was another finance sheet in the package that offered "Standard" financing and it was 14.25%. So as Caskbill indicated, they DO have different rate options depending on what you qualify for....both plans were still just 10% down tho. Now that the Fed has backed off prime a bit maybe Disney will drop their rates a little too.

Anyway, I wasn't trying to stir up anything, I was just trying to offer another idea to the OP as I saw on another thread where she has a pretty expensive trip already booked - those funds would go a long way toward a downpayment on a DVC membership!!

I am not trying to stir up anything either and I am not sure why you thought I think you are! I just wanted to point out that the interest is tax deductible when you finance thru Disney. And I am sure Disney does report delinquent accounts. However, if your account is in good standing it does not show up on your credit report. Not that this is necessarily a good thing, my rep told me that, it didn't matter to me since I am not over extended with or without my DVC. However, sure enough when I checked my credit score after the fact, it didn't show up.

I just mentioned not maxing out home equity since if someone is worried about not qualifying I just sort of wanted to bring that up.

I always worry about qualifying for anything, not because I don't have great credit but because I am Anal Amy!

 

[mamawanavacation]

Thanks everyone for your reply's! I have an appointment set up to take a tour for next week, please wish me luck!

Jan

 

[covereddish]

Good Luck, Jan!

I hope all goes well for you.

If you think of any questions before then, just ask!!

 

[JodyTG]

I have heard that in the past, if someone really had bad credit, then DVC wanted something like 20% downpayment instead of just the regular 10%.

We knew a couple with really bad credit and they got approved with a 20% down payment PLUS their contract was financed over 5 years instead of 10. If THEY can get approved then anyone can get approved. They were told that bad credit is better than no credit.

 

[acourtwdw]

We were with my cousing last month at SSR doing the tour (again). The guide said the only thing that will keep you from getting financed with Disney for DVC is bankruptcy.

 

[TLCDisney]

Our DVC loan has never shown up on our credit report. Also, when my ex defaulted on his loan for DVC it never showed up either. Strange but true.

 

[JodyTG]

We were with my cousing last month at SSR doing the tour (again). The guide said the only thing that will keep you from getting financed with Disney for DVC is bankruptcy.

Well...it depends how far out of bankruptcy someone is, I guess. The couple we know where only about a year (less than 2 anyway) out of bankruptcy. They had a larger down payment and their monthly payments where larger since the loan was spread out over 5 years.

So, I say if this is what your want then it never hurts to try.

 

[cymomtx]

Our bankruptcy didn't stop us, they just asked for a bigger down payment.

 

[Mattsmommy]

bumping