Bank or Borrow - which is better???

[johnsbelt]

Still looking at needs/wants and the finances .

The general thought of my DW and I is that we want to travel every other year to the World and would do it through borrowing or banking or a little of both. In general, what is the best position to be in, banking for the next trip or borrowing for the next trip (assuming that it would be 2 years worth of points with one of them being the current year)?

I know I'll get some really good replies.

Thanks in advance,

John

 

[Granny]

Some people like to be always borrowing points. They say that the benefit is that they never miss a banking deadline!

We tend to have banked points each year since we are using smaller accommodations (1BR) than we used to (2BR). But I don't know that there's really a right or wrong answer to the question. You just use the points when you need them and the banking/borrowing allow you to do that.

Banking/borrowing aren't goals, they are means to a goal (vacation). I tend to bank and borrow every year (2 different contracts).

 

[Sandisw]

I think that either one is fine. However, with a EOY plan, be sure you think about UY so that you choose one in which you are mostly traveling during the first 8 months so that if there is an issue, you will still be able to bank current UY points.

If you travel toward the end and have to cancel or change, you could put those in jeopardy. The banked or borrowed points expire at the end of the UY anyway, but if you travel during your banking window, at least you would be able to salvage those current UY points.

For example, say you own a June UY and travel in October on 75 banked and 75 current UY points. Something happens and you have to cancel the trip and don't know if you will be back. The 75 banked would still expire May 31st--however, the 75 current UY points could still be banked--worst case you lose 75. However, if you owned a Dec UY and traveled in October on 75 banked and 75 current UY points and canceled, all 150 would be lost if you couldn't use them by November 30th.

 

[KAT4DISNEY]

If you use banking then if you end up adding another trip or needing another room or larger accommodations you would be able to do it by also borrowing. If you borrow then that may not be an option. But otherwise not really much of a difference. In both cases you are moving points to a different UY and they have to be used in that UY or expire.

 

[mopee3]

Humm We found out that after a trip or 2 we were always borrowing because we didn't start out with enough points. Because just like now we can hardly wait to get back and drink, eat, experince the Kool-aid.

A couple of questions for you to think about: 1. How many times have you been there(Disneyworld-land), 2. How many times have you stayed in DVC accomodations?

Answer these questions grasshopper and there-in will be the answer to your question, to bank or borrow.

Don't ya just love those little icons!?

Moe

 

[KAT4DISNEY]

Humm We found out that after a trip or 2 we were always borrowing because we didn't start out with enough points. Because just like now we can hardly wait to get back and drink, eat, experince the Kool-aid.

Same for us. When we bought I had it all figured out and were going to be doing some banking every year. HA!

 

[Sammie]

I would not worry about it either way. We have done both over the years, mainly depending on when we could get away to go.

 

[Greysword]

As a general rule, if my 4-month window is fast approaching (a week or so out) and I didn't use the points for that year, I bank them. If I'm making a reservation and need more points, I borrow them. Otherwise, the points just sit there begging for attention...

 

[DenLo]

My DH and I are for banking the points versus borrowing. And we added more points to be sure we stay in that mode. We would just find it depressing if we had already borrowed and used all of next years points. We are savers always have been always will be.

 

[Orsino]

In order to visit every other year without wasting points (or buying the 15 dollar extra points) you will need to both borrow AND bank. If you try and only borrow, or only bank, then you will likely have extra points that you would not be able to move to your next vacation.

Don't:
Y1: Bank (no trip)
Y2 - you would need to use all points EXACTLY or else you will waste them. Any Y2 points left over can only be banked into Y3, which is your 'off' year. You can't get them to Y4.

Do:
Y1: Borrow from Y2 (trip using all Y1 points and some Y2 points)
Y2: BANK what you didn't use
Y3: use left over Y2 points, all Y3 points, and borrow Y4 points needed to finish reservation
Y4: BANK

etc.

Every other year trips require both banking and borrowing to be efficient.

 

[lebeau]

In order to visit every other year without wasting points (or buying the 15 dollar extra points) you will need to both borrow AND bank. If you try and only borrow, or only bank, then you will likely have extra points that you would not be able to move to your next vacation.

Don't:
Y1: Bank (no trip)
Y2 - you would need to use all points EXACTLY or else you will waste them. Any Y2 points left over can only be banked into Y3, which is your 'off' year. You can't get them to Y4.

Do:
Y1: Borrow from Y2 (trip using all Y1 points and some Y2 points)
Y2: BANK what you didn't use
Y3: use left over Y2 points, all Y3 points, and borrow Y4 points needed to finish reservation
Y4: BANK

etc.

Every other year trips require both banking and borrowing to be efficient.

This is exactly what I was looking for.

 

[DisneyStarWisher]

In order to visit every other year without wasting points (or buying the 15 dollar extra points) you will need to both borrow AND bank. If you try and only borrow, or only bank, then you will likely have extra points that you would not be able to move to your next vacation.

Don't:
Y1: Bank (no trip)
Y2 - you would need to use all points EXACTLY or else you will waste them. Any Y2 points left over can only be banked into Y3, which is your 'off' year. You can't get them to Y4.

Do:
Y1: Borrow from Y2 (trip using all Y1 points and some Y2 points)
Y2: BANK what you didn't use
Y3: use left over Y2 points, all Y3 points, and borrow Y4 points needed to finish reservation
Y4: BANK

etc.

Every other year trips require both banking and borrowing to be efficient.

This is great advice! Someone gave me this advice a few months ago when I was trying to figure out the EOY situation and how to not waste a single point. This is exactly what I am doing!

 

[johnsbelt]

I

Don't:
Y1: Bank (no trip)
Y2 - you would need to use all points EXACTLY or else you will waste them. Any Y2 points left over can only be banked into Y3, which is your 'off' year. You can't get them to Y4.

Do:
Y1: Borrow from Y2 (trip using all Y1 points and some Y2 points)
Y2: BANK what you didn't use
Y3: use left over Y2 points, all Y3 points, and borrow Y4 points needed to finish reservation
Y4: BANK

etc.

This was my thinking as well.

I would also like to thank everyone who also brought in the UY info. I had thought about UY but was mainly trying to see what others had to say about banking and borrowing. I know I would get more different viewpoints than I could think of.

Although I'm mainly a saver, I'd probably be more of a borrower. I would really hate to lose any points!

And yes, I love all of the icons.

John

 

[crisi]

In order to visit every other year without wasting points (or buying the 15 dollar extra points) you will need to both borrow AND bank. If you try and only borrow, or only bank, then you will likely have extra points that you would not be able to move to your next vacation.

Don't:
Y1: Bank (no trip)
Y2 - you would need to use all points EXACTLY or else you will waste them. Any Y2 points left over can only be banked into Y3, which is your 'off' year. You can't get them to Y4.

Do:
Y1: Borrow from Y2 (trip using all Y1 points and some Y2 points)
Y2: BANK what you didn't use
Y3: use left over Y2 points, all Y3 points, and borrow Y4 points needed to finish reservation
Y4: BANK

etc.

Every other year trips require both banking and borrowing to be efficient.

I've been doing this for ten years and it works fine. It has the advantage that I can spend more or less points in the vacation requires it. If I take my "normal" trip, every ten years or so I end up with so many points that I have to add a few days - or we took my family.