Credit checks to purchase

[dawz1026]

Do they do credit checks on you if you have an interest in DVC...I was blabbing how great it sounds to my sil and forgot she had a bancruptcy last year

 

[ssmerdel]

Yes, they do credit checks if you are financing. If you plan on buying outright, I would think not, since it is being paid in full.

 

[maryloubsw]

Do they do credit checks on you if you have an interest in DVC...I was blabbing how great it sounds to my sil and forgot she had a bancruptcy last year

Yes they check it, but they told me they only look for outstanding foreclosures and bankruptcies, so I'm not sure if that means only if you are in the PROCESS of one or if you've had one in the past.

 

[brandip22]

It's been 5 years since we financed, but we had a BK at the time that was 2 years old. We just had to put more down, but that was OK with us. Now we only have 2 months left- add on time!!

 

[ut*disney]

So your credit score doesn't really matter? I mean, if you have *poor* credit they would finance you?

 

[DVCGeek]

So your credit score doesn't really matter? I mean, if you have *poor* credit they would finance you?

Probably, just at the higher 14.75% (or something like that) interest rate. They also might not let you use certain promotions until after you've paid at least that enough principle on the loan to cover the value (like a free cruise for example).

 

[bumbershoot]

They also might not let you use certain promotions until after you've paid at least that enough principle on the loan to cover the value (like a free cruise for example).

But that's for everyone.



OP, I have yet to read about someone being denied. Not sure if they'd come back and say so, but it's possible. I mean, we all do chat about quite a bit!

 

[letitsnow]

If you were to get denied would it be right away or during escrow?

 

[CrazyDuck]

I doubt they deny anyone.... Whats the worst that could happen if you default on your loan? Disney takes the money you already paid and puts it in their pocket, then they take your points and put it back in their inventory! Win... Win... for them!

 

[Ericandjenng]

They do on occasion turn down financing for someone. It happened to my niece and her husband.

Sorry-mini hijack--I more curious about the financing for add-ons....any ideas?

 

[maryloubsw]

So your credit score doesn't really matter? I mean, if you have *poor* credit they would finance you?

Basically our guide told us, this is private financing, we do a credit check but only looking for OUTSTANDING bankruptcies or current tax liens (pretty much if someone would be able to seize your assets). Otherwise they don'tcare because if you default, they don't really lose much, they just resell your contract, its not like they have to evict you or anything. I have less than perfect credit because I have some student loans and short credit history since I'm younger and I got financed, but at the higher rate. Like others have said, I will be paying it off early though.

 

[Sandisw]

They do on occasion turn down financing for someone. It happened to my niece and her husband.

Sorry-mini hijack--I more curious about the financing for add-ons....any ideas?

You can finance contracts of 50 points or more. I believe they also have a 1 year loan that allows about 5% interest with 50% down. If you have a Disney Visa, you can put it on that and get 6 months, 0% interest on up to $5,000.

 

[Crystal_27]

They do on occasion turn down financing for someone. It happened to my niece and her husband.

Sorry-mini hijack--I more curious about the financing for add-ons....any ideas?

I'm sorry, but I'm very intrigued about the deal with your niece and husband. You don't have to answer if you don't want to, but HOW in the world did they get turned down? I didn't think that ever happened.

As to financing add-ons, I believe I've read that you automatically qualify for the preferred 10.75% rate when you finance add-ons.

 

[Ericandjenng]

Honestly I don't know specifically, but if I had to guess, he had only been in his job about a year and I would suspect they have a very high debt-to-income ratio. A PP said they don't look at much but I would guess they have to give some weight to normal credit things like the ratio and time on job.

I also don't know how well they keep their finances. My sister and her late husband were horrible with money so my niece did not learn financial resposibility at home. I have no idea what her DH's parents taught (or not) him. Unfortunately I spent more time around her when she was younger and less time when she was a teen which is when she really needed to see real world finances. (Don't get me wrong--I'm not perfect and have made poor choices but I do try and learn from my mistakes and make an effort)

 

[ut*disney]

Is there a particular finance company better than others? We were going to pay cash, but if we could pay half and finance half, that would be better.

 

[ut*disney]

I just found out timesharelending.net requires you to have a minimum FICO credit score of 680, no late pays, no bankruptcy, no liens or foreclosures.

 

[DVCGeek]

I believe they also have a 1 year loan that allows about 5% interest with 50% down.

Really? I never heard of that one! Of course, since I always said "I'll be paying cash" when my guide mentioned financing for my add ons, I probably never let her get that far...

 

[bumbershoot]

The credit check was done while DH was on the phone. It was instantaneous, and the guide knew what interest rate it would be at that moment too.

Yes there are forms to fill out, but the guide said that those were just for the files; they weren't doing any further checks.

I doubt they deny anyone.... Whats the worst that could happen if you default on your loan? Disney takes the money you already paid and puts it in their pocket, then they take your points and put it back in their inventory! Win... Win... for them!

That's what I figured, too.

They do on occasion turn down financing for someone. It happened to my niece and her husband.

By Disney directly? Or from another company?

Our guide and his boss said "Disney IS the bank for this", so they make the decisions about who is financed, and as CD said, the worst that happens is that Disney takes the points back if you don't pay.

Is there a particular finance company better than others? We were going to pay cash, but if we could pay half and finance half, that would be better.

If you don't mind 10+% interest, I'd just buy directly from Disney and do it that way.

If you do mind that (and it's all up to what your own personal financial background is, whether you feel that 10% is the worst thing that could happen to a loan, or much more generous than another lender was, LOL), contact the resales companies and see who they use. Or if you're in fabulous position, perhaps you could get a personal loan.

 

[DVCGeek]

For people considering Mouse based vs. other financing-

Don't forget that Disney's 10+% interest is normally deductible on your federal taxes (if you itemize; but consult a tax professional- I'm not one, yada yada yada) because they right it up as a Mortgage.

If you have an offer for a loan from someone else that is only a LITTLE lower, you may actually save money "paying" the higher interest to the mouse and getting the deduction for your "second home".

Also, I was told that (as long as you pay of course!) Disney does NOT report the DVC loan to the credit boroughs (since it is privately held or something like that), so that may be important for some people worrying about debt to income ratio or planning on financing a new car or house in the near future and therefore not wanting a recent sizable loan showing up...

 

[Ericandjenng]

By Disney directly? Or from another company?

Our guide and his boss said "Disney IS the bank for this", so they make the decisions about who is financed, and as CD said, the worst that happens is that Disney takes the points back if you don't pay.

By Disney directly...they took a tour last year when I gave them some of my points to vacation.

Also, I was told that (as long as you pay of course!) Disney does NOT report the DVC loan to the credit boroughs (since it is privately held or something like that), so that may be important for some people worrying about debt to income ratio or planning on financing a new car or house in the near future and therefore not wanting a recent sizable loan showing up...

Disney does NOT report to the credit bureaus. I found out when I refinanced last year and had to explain an inquiry on my cbr for the re-fi. Then an issue arose because I mentioned time-share but there was no entry for it. You can get info from member accounting or I showed the underwriter the loan info page on the DVCmember website.