Buying DVC with Less than Stellar Credit

[kjbstore]

We just got our info packet from DVC and plan to buy 200 points. We owned our own small business for almost 5 years and sold it and are just finishing paying everything off. The result is less than stellar credit but we are now nearly debt-free. How flexible and "forgiving" is Disney with financing or should be expect to find our own financing. We can put down 10-30%. Anyone else have less than perfect credit and if so, were you approved?

We are anxious to become DVC members and schedule our first trip home.

Kathryn

 

[goofy4tink]

You sound like me last fall. If you are able to put down up to 30% you should have no problems. Try not to worry. And good luck!!

 

[rocketriter]

Disney is reasonably flexible. Fear not.

 

[pumpkinboy]

Well, I have fortunately not suffered from credit problems myslef, my training is as a credit analyst, so have (I would hope) some insight into the process.

Goofy4Tink has it right I think; with enough down (I'd say 20%-30% would be good) and if you go with the direct debit plans so they never have to wait for payment (assuming there's $$ in the account of course), DVC Mgmt has very little to lose by extending you credit for the other 70%-80%. Another thing that might improve your prospects would be to take a shorter term DVC loan, as lenders are more willing to lend for shorter periods if they have any kind of doubt about repayment.

This is a highly collateralized transaction, and the organization is sales-driven, so I expect you should have few problems if your term is under 5 yrs and you put down a decent chunk. Good Luck!

 

[OneMoreTry]

Maybe it's not time to buy. Stay cheaper for a couple years. It takes a while for them to sell out AND there will always be resale.

 

[floridafam]

I asked when we bought in. We have a lot of student loans. We had no problem but the woman in credit said that sometimes they ask you to put 50% down and then pay the rest off within a year if you have terrible credit. Of course, you can opt to do this on your own if you want a lower interest rate.

I think they look at your debt to income ratio.


Good luck.

 

[studog]

Does DVC absolutely require a down payment?

 

[brandip22]

Stu- Yes, they absolutely require a down payment of at least 10%. Y'all have me worried now. Before I started looking to buy into DVC, I asked on these boards the credit question and got completely different answers. I have a BK from a business. We are in the process of getting all of the money back from the people we bought it from since they falsified all of their financials, but we still have that on our record. (Long Story) Anyway, we don't have much debt and have good income. When I asked on here before, I was told that nobody had ever heard of anyone getting turned down before. We are putting 10% down and just sent the paperwork today, but I will let you know when we hear if it was approved. I sure hope so! I can't put down 30% now. I could have, but have since used cash reserves to buy DH a new truck. Hopefully, that won't keep us from being able to get approved since we could've always financed the truck(it was approved). We'll see. But I'll be biting my nails until I hear.

 

[Deemarch]

We don't have a credit problem either but opted to use an equity loan at 4% to pay for our DVC. That would solve all questions concerning payment to Disney.

 

[Xtine76]

Don't worry-they financed me! DVC was great with financing, my credit is horrible thanks to my exhusband and they financed me with 30 percent down and a five year term. Not bad really only about 250 a month including the dues for 150 points for five years and then it's just dues after that. I believe my interest rate is 10% it might be 9.75 I can't remember. If you want to see how you would fare you can have them do a prequalification, that is what I did-I wanted to be approved before I even tried to think about it. Go for it!

 

[Cruelladeville]

My DD also got approved with terrible credit, thanks to a not-DH who skipped out after maxing every credit card they owned, and hiding the bills to keep the deed quiet. They asked her to put down 30%, but approved her. Once you are approved, they do not report the loan to the credit bureau, as long as you stay current on the payments.

 

[Reginak]

Our credit isn't perfect either. We are only 10 points away from "good" on our credit score. We had no problems at all, but I still bit every nail to the quick waiting.
I comforted myself with some practical knowledge. They will approve almost everyone. My guide said that he had never heard of anyone refused;and, if you are not making your payments, they won't let you come.
Also, our purchase included 150 pts, which expired one week after we told our guide yes and made a down-payment over the phone (two days before our annual passes expired.) We were told that we could use the points that week, before approval, as long as the cash equivalent of our stay was not greater than our downpayment.
Really they have nothing to lose: your downpayment should cover your first years use of points and they won't let you return on points unless your payments are current. Plus, they have no expense lost in repossession.
If you have little debt, they probably won't turn you away and if they ask for a larger downpayment use the magical beginnings offer.
Either way you should hear from them approximately one week after the received your signed contract.
Good luck and lots of pixie dust. Relax, it will work out.
Regina