Borrowing of points?

[ctc917]

I am in looking into purchasing DVC points and I understand most of how DVC works except I'm a little confused on the "borrowing" of points. Could someone explain this to me?

Thanks for the help

ctc917

 

[RobDoc]

If you don't have enough points in your current Use Year to make a reservation, MS will allow you to "borrow" points from the following Use Year to make the reservation. If that reservation is later cancelled, the borrowed pointss cannot be returned to the original Use Year and will remain in the Use Year intot which they were borrowed to be used for another reservation or expire at the end of that Use Year.

If you have a June Use Year with 100 remaining points from the 2009 use Year and want to make a reservation for March, 2010 needing 135 points - you could use the 100 current points and borrow the other 35 points from your 2010 Use Year. If you later decide to cancel that reservation all 135 points would be returned to the 2009 Use Year. The 100 current points could be banked (by January 31, 2010) but the 35 points borrowed from the 2010 Use Year would have to be used or they would expire on May 31, 2010 since they could not be banked.

Points may only be borrowed while actually making a reservation. Borrowed points cannot be transferred and cannot be banked.

 

[ctc917]

I think I get it. Can you only borrow from one year ahead? Also how long can points be banked for? I think I missed that info too.

ctc917

 

[backyardponder]

You can only borrow from the next use year. For example, if you have a June 2010 use year, you can borrow the points you get credited in June 2011 into the June 2010 use year. Thus, the borrowed points can be used for a reservation starting June 1 2010 until May 31 2011. If the borrowed points aren't used for a stay before May 31, 2011 you loose them.

Banking is similar. You can bank points into the next use year. You must use them in that use year.

 

[DebbieB]

One important point - the points are from the use year that the stay takes place, not when you make the reservation. For example, if you have a June use year and want to make a reservation now for July 2010, 2010 would be current year points for that reservation. You could also used banked 2009 and borrowed 2011. Also, points are in your account for all future use years, so there's no waited for them to "deposit".

 

[dianeschlicht]

So all of the above information means that you COULD have access to 3 years of points at once by banking one year into the next, and in that next year using the banked points, the current points, and borrowed points from the following year. That's how some of us manage small contracts at specific resorts. For example: we have only 69 points at AKV, but by banking and borrowing, we can have access to 207 points to use at the 11 month booking window by making the reservation for the middle year.

 

[RobDoc]

While not practical for most members, it is even possible to use up to 4 years of points for a single reservation that would cross two Use Years.

With a 150 point contract and a June Use Year, a member could bank their 2009 points and then use their 2010, borrow 2011 and even borrow 2012 points for a single reservation for a stay from May, 2011 into June, 2011.

The banked 2009, current 2010 points and points borrowed from 2011 could be used for the dates in May, 2010 and points borrowed from 2012 (along with points from the 2011 use Year) could be used for the dates in June, 2011.

For that example, a member could have access to 600 points for a single reservation.

 

[backyardponder]

Hey Doc, Great point. I hadn't thought about that one!