Can someone explain borrowed/banked points?

[amee]

Thanks for all the help on my last series of questions. This set involves banking/borrowing. Again, because i am in Washington, Disney can't answer any of my questions! Thanks in advance.

1) Are banked points good until the end of the following use year? For example, if my use year was October, and i banked 100 2002 points, would they be good until October 2003?

2)Can banked points be used just like any other points.....until they expire.......DVC, trade, rent?

3)How about borrowed points? If i don't have enough points for a trip in use year one, am i borrowing ahead to the next use year? So, when that years points are re-uped i will be short however many i borrowed?

4)Most of these questions revolve around looking at resales available....most have some kind of borrowed/banked point situation......just trying to find out what might be happening that i don't quite understandyet.....any other tips would be great!

thanks!

Amee

 

[pwwhitehead]

If your use year is October 2002. Then you can bank these points.At any one time you can have a total of three years point available to you.

Example: 200 per year October 2002 use year.You can bank these points and elect to have a vacation in the 2003 use year.That will give you a total of 400 available points.

You could also elect to borrow from the 2004 use year which will give you 600 available points. You cannot however carry over borrowed points into the following two use years.

Any points banked in the 2002 use year will have to be used in the 2003 use year or they will be lost.

 

[dianeschlicht]

Your question actually shows that you do understand the banking and borrowing.
1. Yes, banked points become part of the next use year, and expire with the next use year's points. You have to be sure you use at least as many points as you bank that next year.

2. Yes, points are points are points. Once they are banked, they are just like any other points in that use year.

3. Yep, you got it right.

When looking at contracts with banked and borrowed points, be aware of the use year. If a contract has points in "reservation status" that means those points would have to be used in the last 60 days of the use year. Kind of confusing, and I am not sure I understand that one either, because I have never had to do it.

 

[CarolMN]

Originally posted by amee

1) Are banked points good until the end of the following use year? For example, if my use year was October, and i banked 100 2002 points, would they be good until October 2003?

Amee

Actually, if you have an October use year and banked your 2002 points, the banked points would expire on September 30, 2004

Assuming an October use year:

Your 2002 use year would run from 10/1/2002 through 9/30/2003.
Your 2003 use year would run from 10/1/2003 through 9/30/2004.
Your 2004 use year would run from 10/1/2004 through 9/30/2005.
etc.

So if you banked points from a 2002 use year to a 2003 use year, they would be good for stays between 10/1/2003 and 9/30/2004.

If you borrowed points from a 2003 use year, they would be good for stays between 10/1/2002 and 9/30/2003. The borrowed points (and 2002 current use year points) will expire on 9/30/2003 if not used.

When you are analyzing resale contracts, it will help to make yourself a chart similar to the one above. It's particularly helpful with use years that fall later in the year. Use years are NOT the same as calendar years and it is easy to become confused.

Have fun researching!

 

[PamOKW]

2)Can banked points be used just like any other points.....until they expire.......DVC, trade, rent?

Yes and no. There is one little nuance for using points for non-DVC resorts.

You can use your points (current, banked or borrowed) to "pay" for a non-DVC trip right up until the end of your Use Year. However, the reservation for a trip taken during the last two months must be made prior to the last 60 days of your Use Year. Using the October Use Year example, you could take a trip to the Plaza in NYC during September but you would have to make the reservation in July or earlier.

Here's the reason for this policy taken from the Member Guidebook.

DVC converts your Vacation Points into rental inventory to pay for your Member Getaways vacation. We have learned that inventory submitted within the last 60 days of a Use Year is difficult to fill, so we have no guarantee of recouping the costs.

You can travel in the last 60 days of your Use Year, as long as you've booked your stay more than 60 days before the end of your Use Year.