Changes in credit scores?

[tvwalsh]

It may be of interest to buyers of DVC (and anything else) that credit scores are being re-evaluated.

My excellent credit score (on equifax) went down from 790 to 785. That is, of course, not significant. What is significant is that my 790 was only better than 90% of all entries, while my 785 is now better than 96% of all entries.

Unless everyone's credit worthiness has suddenly dropped in the last two months, since I last checked my score, that means there has been a change (a raising of the standards).

I would suggest you check your credit score, especially if you are financing a DVC purchase.

 

[tvwalsh]

At the risk of being flamed, I am going to state clearly that if you accept the 15.25% interest financing from Disney because this is the best financing you can arrange, YOU CANNOT AFFORD TO BUY DVC!

This interest rate was mentioned in the purchase info about the re-opening of SSR sales.

Remember, the Federal Reserve has pretty much reduced the fed funds rate to zero!

 

[Mattsmommy]

At the risk of being flamed, I am going to state clearly that if you accept the 15.25% interest financing from Disney because this is the best financing you can arrange, YOU CANNOT AFFORD TO BUY DVC!

This interest rate was mentioned in the purchase info about the re-opening of SSR sales.

Remember, the Federal Reserve has pretty much reduced the fed funds rate to zero!

Well, congrats on your 785 credit score, but just because you choose to finance DVC does NOT mean that you can't afford it.

 

[JW9DVC]

Yes, just because you finance anything, doesn't mean that you can't afford.

Credit scores vary for many reasons. 15.25% may be high to some. When you make $8,000 a month, what does it matter?

Preferred or standard. I wouldn't worry about it. Money is not grown on trees, its grown on plastic.

 

[Disneypirate85]

one of the reasons we went resell was cause of Disney's rate. Was 2 points higher then just going thru our bank. I didn't have $12,000 laying around and DID NOT wish to pull any out of my house so we financed thru bank for 3 years.
If you can just pay cash GREAT for you, but for Heather and I and our 7 children we'll just go with the bank.
But to OP's original point we also watch our score and credit report VERY VERY closly my score has not moved downward but keeps bouncing up then back to original score confused yes but as long as I do not go below original score i'm ok.

 

[Dean]

Well, congrats on your 785 credit score, but just because you choose to finance DVC does NOT mean that you can't afford it.

What would you say about someone who simply chose to finance something at over 15% when they could get a home loan for 5% and a HELOC for 8% or less? Personally I don't think people should buy such a luxury purchase by financing but at least look for something lower in todays market.

 

[hellerjw]

I think the main reason is that if you don't want to or can't get a 2nd mortgage (which is almost impossible to get these days) either in the form of a HELOC or loan, then financing through DVC has the same tax advantages. This tax advantage is something no other type of loan can offer, regardless of the interest rate they give you.

 

[Dean]

I think the main reason is that if you don't want to or can't get a 2nd mortgage (which is almost impossible to get these days) either in the form of a HELOC or loan, then financing through DVC has the same tax advantages. This tax advantage is something no other type of loan can offer, regardless of the interest rate they give you.

15% plus for the right to save a maybe 2-3% of the interest amount off your taxes, doesn't make sense to me.

 

[nzdisneymom]

At the risk of being flamed, I am going to state clearly that if you accept the 15.25% interest financing from Disney because this is the best financing you can arrange, YOU CANNOT AFFORD TO BUY DVC!

This interest rate was mentioned in the purchase info about the re-opening of SSR sales.

Are you serious? 15+% financing through DVC? Holy Cow. When we first bought in 2006, it was under 10% and they were at 10.75% when we added on in 2007 and we thought that was seriously high (we "financed" through them and then paid it off nearly immediately).

 

[janni518]

At the risk of being flamed, I am going to state clearly that if you accept the 15.25% interest financing from Disney because this is the best financing you can arrange, YOU CANNOT AFFORD TO BUY DVC!

This interest rate was mentioned in the purchase info about the re-opening of SSR sales.

Remember, the Federal Reserve has pretty much reduced the fed funds rate to zero!

No flames from me, just confusion as to what motivated that partuicular post.

 

[hellerjw]

15% plus for the right to save a maybe 2-3% of the interest amount off your taxes, doesn't make sense to me.

The interest is fully deductible just like a home mortgage, its considered a 2nd home for tax purposes. Granted, existing assets or the tax bracket you are in can negate this benefit and it is diminished further if the interest rate is truly 15% right now. When it was still 10.75% that was a comparable rate to what most personal loans were at, you can definitely do better than 15%.

I'm not saying your point is incorrect, I'm just offering a possible reason why financing through DVC might be a better option than other loan types for some people.

 

[tvwalsh]

My motivation was to save people from being cheated and/or impoverished by our beloved DVC.

 

[gkrykewy]

The interest is fully deductible just like a home mortgage, its considered a 2nd home for tax purposes. Granted, existing assets or the tax bracket you are in can negate this benefit and it is diminished further if the interest rate is truly 15% right now. When it was still 10.75% that was a comparable rate to what most personal loans were at, you can definitely do better than 15%.

I'm not saying your point is incorrect, I'm just offering a possible reason why financing through DVC might be a better option than other loan types for some people.

A deduction is not a credit. So many people don't do the math on such things. 15+%! What a terrible deal. That really should have been a separate thread from "changes in credit scores", however

 

[keishashadow]

There is a shift afoot to new credit score method of rating VantageScore, think letter grade...what was excellent before isn't now or ur A has now dropped to a high C (never did like the curve grading method? )

cliff note version

How does VantageScore compare with FICO credit scores
Your credit score—and the scoring method—is important because it is a big factor in determining if you will get credit and the interest rate you get on that credit.
Currently each of the CRAs produce a credit score using different methods, but generally based on the FICO model. Current credit scores range from 300 to 900.
VantageScore will use a score range from 501-990 and give each level a letter grade as shown below.
A: 901 - 990
B: 801 - 900
C: 701 - 800
D: 601 - 700
F: 501 - 600

 

[hellerjw]

A deduction is not a credit. So many people don't do the math on such things. 15+%! What a terrible deal. That really should have been a separate thread from "changes in credit scores", however

No, its not a credit. However, it is deductible for most people which can't be said for any other loan type except a second mortgage (HELOC or loan). For many folks that's the only real deduction they get each year. I'm not saying its a good deal but if that deduction is important to you then it is something favorable that the DVC financing offers.

I agree that 15% is outrageous but with the almost non-existent credit market these days that may be all many can get. I'm just playing devil's advocate here and agree that if 15% is the best you can do then you shouldn't be financing your purchase. I'm just trying to let newbies know the one advantage DVC financing might have over other conventional loans.

 

[jcf]

10.75 for add-on for me.

 

[patsal]

Yes, just because you finance anything, doesn't mean that you can't afford.

Credit scores vary for many reasons. 15.25% may be high to some. When you make $8,000 a month, what does it matter?

Preferred or standard. I wouldn't worry about it. Money is not grown on trees, its grown on plastic.

Well, $8000 per month isn't all that much and it can be stretched even further with wise financing decisions. Why would you pay more for anything just because you have the $$. Would you buy the same tv for $400 more just because you have the money?

Just because buying 30 points at a time on my credit card for 0% works well for me buying more points and paying interest works for others. But to say something like if you have $8000 in income interest rates don't matter just doesn't make economical sense to me.

 

[robandkelly13]

I have been reading all these posts and it makes me want to log off of Disboards, and never visit this site again. Who are you people to tell someone that if they can't pay cash upfront, then they should not be members. How does it affect you if someone else is paying 15% interest? Ours was no where near that, but who cares. Everyone on here knew what they were doing when they signed the contract. I am happy that your credit score is 785, but what does have to with me and why do I need to know that. I guess I am just venting but I come to this site to learn more about the parks resorts, or whatever, not to read about what we did wrong, and we should not be here. I am 100% disabled from Iraq and spend the better part of my time on this site, and I usually do not reply to posts, but this is getting depressing, 50 threads of the same thing.

 

[Laurabearz]

Anyone else falling into the catagory....

I dont care if anyone financed their DVC and I dont give a hoot what anyone thinks if someone does?

 

[Disneypirate85]

I think the original OP's thread has been taken a little off topic. It was purely to point out that Disney's Interest rate has been increased and somewhere it went down hill from there. It certainly is not a reason to stop visiting the Disboards its just in this day and age with all that is going on in the economy it helps to lash out a little. HOWEVER complaining about someone financing there purchase, which Heather an i did, is a little extreme. I would be willing to bet that way more then half of DVC is financed probably alot thru DVC, but others like me went thru there own bank and got a MUCH better rate.

By the way and most importantly, RobandKelly13 Sorry to hear bout your Iraq injury and disability, but THANK YOU for being there so I can be here. and remember you were there so those here could complain about the interests rates. Thank you again for your service to this beautifull country, from our Family to yours.