Could someone please explain how banking and borrowing works?

[lovepooh]

Hi, I was wondering if someone could explain the ins and outs of banking and borrowing points. Thanks!

 

[bczang]

It is pretty simple.

Lets say you own 100 points and use 2008, 2009, and 2010 as the example.

In 2008 you get 100 points. You can use them or bank them. You must bank points 4 months prior to the end of your use year and you can not bank any points in your holding account.

You can bank points into the next use year and you can also borrow points from the next use year. Ex. You can bank 2008 points into 2009 and borrow from 2010 points to use them in 2009 (that is how you can turn your 100 points into 300). This is a pretty simple explanation but it is pretty simple to bank/borrow.

 

[tryntje]

Excellent explanation. I'll take it one step further.

We have 160 points each year. In 2006 we banked our points. In 2007 we received our next 160 points. Now we had 320 points. We used 178 points for a weekend stay in NYC. That left us 150 2007 points, which we banked. In 2008 we took our 150 banked 2007 points, our 160 2008 points and borrowed our 160 2009 points (total 470 points) and booked a DVC 2 BR for 3 days at AKL and a 4 day Disney Cruise (points used for two of us and paid for 2). Zero points left until 2010, but points well spent.

 

[lovepooh]

Thank you so much for your responses. What happens if you bank your 2008 points but then decide to go in 2008? Do you just borrow your 2009 points for 2008 and then use your banked 2008 points in 2009?

 

[Deb & Bill]

Thank you so much for your responses. What happens if you bank your 2008 points but then decide to go in 2008? Do you just borrow your 2009 points for 2008 and then use your banked 2008 points in 2009?

Exactly. That's what you need to do since you can't unbank your points.

 

[karebear06]

So, pretty much you are just reallocating your points right? For instance, We are booked for a 1 bedroom in October at Saratoga Springs, and a studio at the Beach Club in Feb. Because they only had availability at the 1 bedroom, we had to borrow points. But, we are on a waitlist for a studio. So, if the studio comes thru, I can bank points right?

 

[Chuck S]

So, pretty much you are just reallocating your points right? For instance, We are booked for a 1 bedroom in October at Saratoga Springs, and a studio at the Beach Club in Feb. Because they only had availability at the 1 bedroom, we had to borrow points. But, we are on a waitlist for a studio. So, if the studio comes thru, I can bank points right?

It depends. If the studio comes through, and you are still within your banking window, Member Services should be able to use your borrowed points for the reservation, that woud free up your current ponts to allow them to be banked.

If the studio comes through during the last 4 months of your use year, you'll be stuck with extra points to use or lose.

 

[karebear06]

It depends. If the studio comes through, and you are still within your banking window, Member Services should be able to use your borrowed points for the reservation, that woud free up your current ponts to allow them to be banked.

If the studio comes through during the last 4 months of your use year, you'll be stuck with extra points to use or lose.

Our use year is April, so I think we will be fine.

 

[moredisneyplease]

just do be careful with that situation in case your waitlist for the studio does come through. It might come through during those last 4 months and then you'd have to use those points before the end of the use year.

Last year that happened to us so I had about 29 points I had to use by the end of my YU. Luckily I'm only an hour from DL so we booked a night down at the GC and turned it in to a local get away!

 

[lovepooh]

So if you have a reservation and for some reason need to cancel, you need to due so 4 months before your reservation? We will have a December UY. Also, when do your points get put into your account? Would it be December 1st?

 

[bookswin]

We will have a December UY. Also, when do your points get put into your account? Would it be December 1st?

Yes, essentially.

You can reserve a stay for that Dec. 1 as far out as 11 months. In other words, you don't have to have the points already granted to use them out in the future; you just have to borrow them now and have them in your account when you arrive.

I am out of 2009 points, but I can borrow my 2010 March Use Year points today to make an-up-to-7-day reservation at my home resort starting June 16, 2009 (11 months from today)

On occasion a supervisor at MS has to perform some kind of magic that regular MS people can't for this to work, or at least that has been my experience.

 

[Cmbar]

I am really confused

I hear alot about how USE YEAR is important. So we are trying to determine if we want to buy at AKV with a December USE year or do a resale for another use year time. We like to go all times of the year but feel now that the kids are getting into middle school that we will need to go when the school breaks occur. So if we want to go Christmas or Spring Break would it even matter what our USE year is.

Can someone please explain what happens if you have to cancel a trip within 30 days of your trip? It used to be that you could book anything and get your points back before the 30 day mark. Is that still true or has that changed.

Also what is the 4 month window rule for banking? Lets say I have a December use year and I have available 160 points as of Dec 1 2008. When do I need to bank those points to use in 2009?

Thanks sorry I am so confused. Just really want to make sure before we buy I understand how Use Year affects you.

 

[chalee94]

I hear alot about how USE YEAR is important.

most DVC members will tell you that use year is not that important. but if you have to cancel a reservation, it can become an issue, so it's worth considering...

So we are trying to determine if we want to buy at AKV with a December USE year or do a resale for another use year time. We like to go all times of the year but feel now that the kids are getting into middle school that we will need to go when the school breaks occur. So if we want to go Christmas or Spring Break would it even matter what our USE year is.

Can someone please explain what happens if you have to cancel a trip within 30 days of your trip? It used to be that you could book anything and get your points back before the 30 day mark. Is that still true or has that changed.

if you cancel a trip more than a month out, there is no penalty...except...well, see below...

Also what is the 4 month window rule for banking? Lets say I have a December use year and I have available 160 points as of Dec 1 2008. When do I need to bank those points to use in 2009?

if you book a december vacation or a spring break vacation or a summer vacation, it doesn't matter at all. BUT if you decide to go to wdw for thanksgiving weekend, for example, and wind up having to cancel in sept or october, you will find that you are past your banking window (8 months from dec 1 is aug 1, so you'd need to bank by the end of july) and have to rent or use those pts before they expire on nov 30. there is no "penalty" for cancelling but you cannot bank those pts and may not be able to use them on short notice...

 

[Cmbar]

Thank you Chalee94!

So I would feel more comfortable with a Sept or October Use year because if we had to cancel within the last four months of our Use Year, It would be easier for me to reschedule our trip within the summer months. I think

So if my use year ends lets say August 31 (because I have a Sept Use year). If I had to cancel my trip for Thanksgiving 2008 or Christmas 2008 or Spring Break 2009 I should be able to use my points for the 2008 use year prior to Sept 1st 2009. Being that we should be able to reschedule easy enough with the kids through the summer that would make me feel that we could always use our points in the summer by getting in the car and driving down. Does that make sense?

 

[chalee94]

So I would feel more comfortable with a Sept or October Use year because if we had to cancel within the last four months of our Use Year, It would be easier for me to reschedule our trip within the summer months. I think

IMO, if you have to reschedule on short notice at any point, you risk having a lot of difficulty in finding availability. summer is a relatively low demand season for DVC but when you're talking about making a reservation a month or 2 in advance, you do risk being shut out...

i would think a sept or oct UY would be worse if you planned more trips in the summer than in sept-to-nov when the kids are in school. a sept UY banking window cuts off at the end of april...so calling in may to change plans in late june or july could still leave you in a pickle.

in general, UY is not a big deal because it only affects what happens if you have to cancel, so unless you have to cancel and rebook a few years in a row, you'll never think much about your UY month... if your travel dates to wdw change over the years, you're taking a chance whichever way you go.

IMO, a dec UY sounds better for you from what you said before. if you typically travel in the summer when kids are out of school, a UY from dec through april or june would generally be best.

even with a sept UY though, you would have some chance of rebooking in the summer or finding a renter on short notice...i wouldn't consider it a dealbreaker either way...

 

[lovepooh]

I have a few more questions. We are trying to purchase at BCV with a December UY. If we pass ROFR then we will have 7 current points and 300 coming in December of '08. This is where I need help. We want to vacation this October and HOPEFULLY there will be a 2BR available somewhere. If that happens we will need about 282 points. So does that mean I borrow from 2008 points even though we are in 2008? I guess that is what I don't understand. I hear everyone saying they are borrowing from 2009 but our '08 points aren't available yet. Are they? If I'm understanding this right am I still in my '07 year until the '08 UY comes up? Could someone please help me???

 

[photobob]

Atcually the 7 points are your 2008 points. Your points coming in Dec 08 will be your 2009 points. Your 300 points will be allocating in DEC 08 and are good through November of 2009.

So, yes you would be borrowing from the 2009 points for the October trip since there are only 7 points currently available.

 

[chalee94]

Atcually the 7 points are your 2008 points. Your points coming in Dec 08 will be your 2009 points. Your 300 points will be allocating in DEC 08 and are good through November of 2009.

So, yes you would be borrowing from the 2009 points for the October trip since there are only 7 points currently available.

i'm pretty sure this is mistaken - dec UYs are very confusing.

the 7 pts are 2007 and you need to borrow from 2008's pts to stay in oct 2008.

 

[Deb & Bill]

Atcually the 7 points are your 2008 points. Your points coming in Dec 08 will be your 2009 points. Your 300 points will be allocating in DEC 08 and are good through November of 2009.

So, yes you would be borrowing from the 2009 points for the October trip since there are only 7 points currently available.

Nope, Bob, if you have a Dec UY, the points you get that year are the same year as the points the members got in earlier in the year. So in 2008, you get 2008 points.

have a few more questions. We are trying to purchase at BCV with a December UY. If we pass ROFR then we will have 7 current points and 300 coming in December of '08. This is where I need help. We want to vacation this October and HOPEFULLY there will be a 2BR available somewhere. If that happens we will need about 282 points. So does that mean I borrow from 2008 points even though we are in 2008? I guess that is what I don't understand. I hear everyone saying they are borrowing from 2009 but our '08 points aren't available yet. Are they? If I'm understanding this right am I still in my '07 year until the '08 UY comes up? Could someone please help me???

I seriously doubt if you will find anything, let alone a two bedroom villa, available for October 08 once you pass ROFR and close on your resale. Those reservations were already booked before the 7 month mark.

BUT, if by a freak chance, something IS available in Oct 08, you would be using the Dec 07 points and borrowing from the Dec 08 points.