Disney financing questions

[dforemsky]

My wife and I just put our $500 down for points at the Animal Kingdom lodge (woo hoo!) and recieved our paperwork today. I have a couple of questions about doing the financing through Disney:

1. Can we make the rest of our down payment on a credit card? (my guide indicated that this was possible, but all of the paperwork asks for a check)

2. How easy is it to make extra payments when you are on the automatic debit system. Is there a website that you can sign into to make the extra payment, or do you have to actually send a check with any extra payment?

3. Finally, is it possible to change the financing contract to put more money down? When I spoke to my guide last week, my wife and I weren't sure exactly how much we wanted to put down, and I thought I would have a chance to change this before we got the final paperwork.

I am planning on calling our guide tomorrow, but I thought I would tap the hive mine here first.

thanks!

 

[Liljam]

Believe it or not, I actually have some answers for ya.

You can use a credit card to pay for the rest of the down payment.

You will receive a pin and id to dvcmember website and there you will be able to pay more to your principle above and beyond what is debited from your account right from the site (at least that's what I was told.)

The check they are asking for is mainly because they will use a voided check for means of debit start up.

You will be able to either pay your MF in full shortly after closing or have them debit each month.

I don't know if you can refinance but I would guess that anything is possible. I do know that you can add on points through Disney too as long as you maintain your Preferred status and given its in your own finacial means to cover the added fees and payment.

I looked at a few ways to do the financing and ultimately ended up going with Disney. Some people look at this as a bad thing because of the interest rate, but I tend to enjoy getting credit and paying it off quickly because it improves your credit score. As someone who is part of a family business and will take over ownership one day when my dad retires, I know that the more good credit history I have the better. I plan to pay it off in advance as well and thats why I know you can pay straight through the site. Either way good luck!

 

[Budshark]

A couple things on Disney financing:

1) Its about the most convenient financing you can find for a DVC purchase.
2) Its secured against the timeshare deed, so depending on a lot of factors it MAY be possible to deduct the interest on your taxes as a second property.
3) When you consider the above factors, the slightly higher interest rate isn't too bad (about the best anyone has gotten is 6.99% through Capital One loans - but this is by invitation only and your credit score needs to be pretty high or you'll get 8.99-10.99 which isn't worth it).

We bought resale - so Disney wasn't a choice for us. Personally for this purchase if I was buying through Disney and financing, I'd use them.

Chris

 

[Budshark]

EEEEK!!! Double Post!

 

[duckfan78]

My wife and I just put our $500 down for points at the Animal Kingdom lodge (woo hoo!) and recieved our paperwork today. I have a couple of questions about doing the financing through Disney:

1. Can we make the rest of our down payment on a credit card? (my guide indicated that this was possible, but all of the paperwork asks for a check)

2. How easy is it to make extra payments when you are on the automatic debit system. Is there a website that you can sign into to make the extra payment, or do you have to actually send a check with any extra payment?

3. Finally, is it possible to change the financing contract to put more money down? When I spoke to my guide last week, my wife and I weren't sure exactly how much we wanted to put down, and I thought I would have a chance to change this before we got the final paperwork.

I am planning on calling our guide tomorrow, but I thought I would tap the hive mine here first.

thanks!

i can answer a few questions. For #2 you can make extra payments. you will get your pin # for DVCMEMBER.com and when you are on there you can make payments or make payments towards your principle. as for putting more down..im not sure you can do that. you can payoff what you owe early if you get another loan or lower intrest credit card. and there are no early pay off penalties.

Also, congrats on buying..you will truly love it. its so worth it. we love dvc so much we just added on 50pts ourselves.

 

[theostwalts]

Believe it or not, I actually have some answers for ya.

You can use a credit card to pay for the rest of the down payment.

You will receive a pin and id to dvcmember website and there you will be able to pay more to your principle above and beyond what is debited from your account right from the site (at least that's what I was told.)

The check they are asking for is mainly because they will use a voided check for means of debit start up.

You will be able to either pay your MF in full shortly after closing or have them debit each month.

I don't know if you can refinance but I would guess that anything is possible. I do know that you can add on points through Disney too as long as you maintain your Preferred status and given its in your own finacial means to cover the added fees and payment.

I looked at a few ways to do the financing and ultimately ended up going with Disney. Some people look at this as a bad thing because of the interest rate, but I tend to enjoy getting credit and paying it off quickly because it improves your credit score. As someone who is part of a family business and will take over ownership one day when my dad retires, I know that the more good credit history I have the better. I plan to pay it off in advance as well and thats why I know you can pay straight through the site. Either way good luck!

Does financing through Disney impact credit scores? I read on another post that Disney does not report it to the credit agencies. Is that true?

 

[Liljam]

Well, I would guess that it does. Just about any time you finance, it shows on your credit report. They do a credit check to approve you so why wouldn't it show up? Who knows, I just guessed that any type of financing shows up there. Lol, I order my credit report at least twice a year, I'll have to check there!

 

[georgeat]

Financing DVC through Disney does NOT show up on your credit report.

 

[disneynutz]

Does financing through Disney impact credit scores? I read on another post that Disney does not report it to the credit agencies. Is that true?

The loan is not reported to the credit bureaus but the credit check prior to approval does show up as a inquiry.

 

[cgcruz]

The loan is not reported to the credit bureaus but the credit check prior to approval does show up as a inquiry.

So for some reason you miss a payment, or default on your loan, it would not be known to other creditors??? Seems like DVC is putting themselves in a bad situation.

 

[Liljam]

Thanks for clarifying that about the credit reporting status. It's odd to me and I can't understand why but... lol. Anyway, I did some searches on Disney Finance on this board and found the same info.

I did read that if you were to default it would probably show up.

BTW, I got my package of papers yesterday with my temp cards. That's a big contract! Now I got a lot of signing to do!

 

[disneynutz]

So for some reason you miss a payment, or default on your loan, it would not be known to other creditors??? Seems like DVC is putting themselves in a bad situation.

Not really. If you default on your loan, they take your contract back and resell your points. Ever wonder where they get points for sold out resorts?

 

[cgcruz]

Not really. If you default on your loan, they take your contract back and resell your points. Ever wonder where they get points for sold out resorts?

So besides losing your points, there is no penalty to the person for not paying their dues? No credit report hit? That doesn't sound so good on DVC's end.

 

[cobbler]

I have heard that if you default on your loan then it would show up on your credit report.

The inquiry DOES show up on your report. Also the loan DOES NOT show up on your report. Only if you default, but that is only from what I have read, no personal expirence in that dept

 

[Mtnman44]

If you want to pay a higher deposit (assuming you haven't signed and sent in your papers yet), just tell your guide and have them send new paperwork with the new loan amount.

 

[Dman67]

I have heard that if you default on your loan then it would show up on your credit report.

The inquiry DOES show up on your report. Also the loan DOES NOT show up on your report. Only if you default, but that is only from what I have read, no personal expirence in that dept

I would assume that Disney would hire a collection agency to try to get the money out of you if you defaulted on the loan. If a collection agency gets involved then it will definately show up on your credit report. Learned that one the hard way back in college.

 

[dforemsky]

Thanks for all of the replies. They put my mind at ease, and we are almost ready to send the paperwork back. Here are the answers that I got from DVC.

First off, let me say that dealing with DVC on this has been a great experience so far. Our guide answered on the second ring last week, and a call to him went straight to voicemail last night. I then call the 800 number in the folder that they ask you to call within two days. I got the message that all of the operators were busy, but to leave my name and number and I would get a call back. Less than 10 minutes later, they called back. I wish all businesses would do this rather than making you stay on hold until an operator becomes available.

1. Can we make the rest of our down payment on a credit card? (my guide indicated that this was possible, but all of the paperwork asks for a check)

When I called the 800 number, the operator told me it would be no problem to put it on a credit card and that I could either give the number to my guide or to her for the down payment. I gave it to her, and she even gave the option of when the charge would go on my card.

2. How easy is it to make extra payments when you are on the automatic debit system. Is there a website that you can sign into to make the extra payment, or do you have to actually send a check with any extra payment?

As stated in the replies above, the operator said that I would receive a PIN number in the mail, and after logging into the DVC member website, we could make any extra payments we would like.

3. Finally, is it possible to change the financing contract to put more money down? When I spoke to my guide last week, my wife and I weren't sure exactly how much we wanted to put down, and I thought I would have a chance to change this before we got the final paperwork.

We decided to stick with the down payment in the documents, so I don't know how easy this would be to change.

Thanks again, and we are looking forward to coming home in December!