Banking and Borrowing

[ellataylor]

I am contemplating my first DVC purchase through resale (and stressing about the decision!). We are from the UK and like to visit for 2/3 weeks every 2/3 years. I understand you can bank all your points from the previous use year and currently you can borrow 50% from the next year. Prior to Covid could you borrow 100% from the next year and have there been any talk of the 50% being only temporary?

Also can anyone think of a disadvantage of consistently using this method?

Many thanks in advance!

 

[Marionnette]

I am contemplating my first DVC purchase through resale (and stressing about the decision!). We are from the UK and like to visit for 2/3 weeks every 2/3 years. I understand you can bank all your points from the previous use year and currently you can borrow 50% from the next year. Prior to Covid could you borrow 100% from the next year and have there been any talk of the 50% being only temporary?

Also can anyone think of a disadvantage of consistently using this method?

Many thanks in advance!

Prior to the pandemic you could borrow 100% of your next use year's points. The current restriction was said to be temporary but there has been no indication as to when it will ever be lifted.

The bank/borrow method is great for an every-2-year visit. It becomes a risk when you stretch that to 3 years. A cancellation of a 3-year rotation could result in losing a lot of banked and borrowed points. I would avoid doing it.

 

[ellataylor]

Thanks for for insight. I can see it would be taking a greater risk. But if you banked and borrowed early in the Use Year am I right in thinking you could cancel and rebook as long as its within the first 8 months?

 

[chalee94]

Thanks for for insight. I can see it would be taking a greater risk. But if you banked and borrowed early in the Use Year am I right in thinking you could cancel and rebook as long as its within the first 8 months?

If I have an Oct UY and I book a Nov 2021 stay with banked and borrowed pts...and then cancel more than 30 days out, then all of those point drop back into my 2021 UY. I can still book any stay with those pts through Sept 30, 2022, subject to availability. But the banked and borrowed pts used for that reservation cannot be moved out of my 2021 UY - if I don't use them to complete a stay prior to Sept 30, 2022, then the pts disappear into the void for no value.

I could still choose to bank forward (one UY) any current UY pts from my 2021 UY. Those banked points would then need to be used to complete a stay prior to the end of my 2022 UY.

The rule of 4 does not apply for DVC resort reservations.

 

[Marionnette]

Thanks for for insight. I can see it would be taking a greater risk. But if you banked and borrowed early in the Use Year am I right in thinking you could cancel and rebook as long as its within the first 8 months?

You can cancel 31 days or more prior to the first day of the reservation and the points will not go into holding.

If the reservation is at the start of your UY, you could cancel by 31 days out and you would still have until the end of your UY to use all of those points. You have until your banking deadline to bank your current allocation of points. Banking deadlines are 8 months after the start of your UY. However, banked and borrowed points would be lost if not used by the end of the UY. You cannot reverse borrowing and you can't bank points that have already been banked once.

 

[rubybutt]

You can cancel 31 days or more prior to the first day of the reservation and the points will not go into holding.

If the reservation is at the start of your UY, you could cancel by 31 days out and you would still have until the end of your UY to use all of those points. You have until your banking deadline to bank your current allocation of points. Banking deadlines are 8 months after the start of your UY. However, banked and borrowed points would be lost if not used by the end of the UY. You cannot reverse borrowing and you can't bank points that have already been banked once.

so you can't bank borrowed points? If you bank 2022 points and borrow 2024 points for a 2023 trip and you cancel within the 31 day and 8 month windows, your 2024 points then act like 2022 points?

 

[Sandisw]

so you can't bank borrowed points? If you bank 2022 points and borrow 2024 points for a 2023 trip and you cancel within the 31 day and 8 month windows, your 2024 points then act like 2022 points?

Banking and borrowing are final transactions. So, once you do it, those points can not be moved again.

So, if you are booking a trip in your 2023 UY, and have banked 2022 ans borrowed 2024 for that trip and cancel it, at least 31 days out, then those points are eligible for another booking in your 2023 UY.

Those 2024 points, once moved, can not to back, You can only bank points that are current for that UY.

The holding restriction, that happens when you cancel less than 31 days, restricts all points to expiring at the end of the UY but also restricts them to bookings 60 days or less from checkin.

 

[rubybutt]

Banking and borrowing are final transactions. So, once you do it, those points can not be moved again.

So, if you are booking a trip in your 2023 UY, and have banked 2022 ans borrowed 2024 for that trip and cancel it, at least 31 days out, then those points are eligible for another booking in your 2023 UY.

Those 2024 points, once moved, can not to back, You can only bank points that are current for that UY.

The holding restriction, that happens when you cancel less than 31 days, restricts all points to expiring at the end of the UY but also restricts them to bookings 60 days or less from checkin.

Thanks for that. I am still trying to figure it all out. What happens to the points if you transfer the banked (and borrowed for that matter) points? Do they revert back to original status or they stay the same just in a different account?

 

[chalee94]

Thanks for that. I am still trying to figure it all out. What happens to the points if you transfer the banked (and borrowed for that matter) points? Do they revert back to original status or they stay the same just in a different account?

You cannot transfer banked or borrowed pts.

You can only transfer current pts.

Once points are transferred, the recipient can bank them if they choose (but cannot borrow transferred pts - so can't use them very easily for an "every third year" scenario.)

 

[ellataylor]

Thanks all for your help!

Think I‘ve got it with banking and borrowing. Well I have for the 100% pre Covid scenario, but been sitting here with UYs on paper trying to work out if 3 yearly trips are viable with 50% borrowing and how many points I would need to purchase!

Sorry to be so clueless but what is transferring of points between accounts? Is that to do with multiple contracts?

 

[Sandisw]

Thanks all for your help!

Think I‘ve got it with banking and borrowing. Well I have for the 100% pre Covid scenario, but been sitting here with UYs on paper trying to work out if 3 yearly trips are viable with 50% borrowing and how many points I would need to purchase!

Sorry to be so clueless but what is transferring of points between accounts? Is that to do with multiple contracts?

Transfers is when one owner transfers points to another owner. Or, if an owner has two memberships…different UY…they transfer points from one to the other so then can book a single reservation,

Owing multiple contracts in the same UY does not require transfers. If they are the same resort, you can use all contracts together at 11 months. If they are different resorts, then you can use them together at 7 months. Prior to that, they can only be used at their own resorts.

 

[chalee94]

Thanks all for your help!

Think I‘ve got it with banking and borrowing. Well I have for the 100% pre Covid scenario, but been sitting here with UYs on paper trying to work out if 3 yearly trips are viable with 50% borrowing and how many points I would need to purchase!

Sorry to be so clueless but what is transferring of points between accounts? Is that to do with multiple contracts?

If you purchase a master contract and an add-on - where both contracts are titled the same and have the same UY - then you might have a 50 pt AKV contract and a 100 pt AKV add-on but it will essentially function as one contract for booking stays. Easy. No need for transfers.

But if you purchase contracts with different UYs (for example), then each contract would be treated as separate memberships. They would be more complicated to use together. One way to book a stay with separate memberships is transferring pts between contracts - in order to "pool" points together to book a single night's stay.

Alternatively, you could book 3 nights with one contract and book 4 nights with the other and ask MS to note that it is a continuing reservation. (But if you have 8 pts left on one contract and 9 pts left on the other contract and want to book a studio for one night that costs 15 pts per night, you can't do it without transferring pts.)