Disney financing..

[HHSTigerFan]

Is Disney financing credit score based? Right now my score is 519, had several problems 5 years ago, they have been cleared up for a few years and I never did rebuild my credit, tore up my CC's, house is paid for, haven't had a car loan in 5 years.. so my most recent late is 5 years ago and have no debt, no revolving lines, no car payment..

 

[ToddyLu]

It is my understanding from other posters that they are looking for bankrupcy and other red flags like that not necessarily the actual score. It is an instant check while on the phone, or it was in our case. It is not reported on your credit report. I have read a couple of posts where a family member was denied but that it definetly not the norm. The preferred rate for us was 10.75%. I think standard rate is 14%, or around that. Many people on the DIS will advise you against any sort of financing for a "DVC luxury". I do not agree and say of you can afford the notes and are making good decisions about your personal situation go for it. At the time we decided to purchase, incentives for AKV were good as was the price. There was no one lending locally for purchases like this so we went with Disney. Our local rate was 8% and above last June.

Good luck and I hope to "Welcome" you home, soon.

 

[3happydancers]

We financed with Disney and received the preferred rate. With your credit score you may end up with the higher interest rate, but really, I think the only way to absolutely know is if you go through with the credit check with them. It only takes a few minutes.

 

[supersuperwendy]

They don't care about credit at all but like others have said if your credit is good you get a better interest rate. If you do a monthly auto draft for your payments you get a little bit of a lower rate also. If you want to use DVC to help rebuild your credit it won't help or hurt. Disney does not report to the credit bureaus.

 

[MainStreetMouse]

10.75% is preferred rate?

I would visit my local bank and see if I could get a better rate. That rate is crazy with todays low interest rates.

 

[cymomtx]

They financed us soon after we had filed for bankruptcy.

 

[MainStreetMouse]

They financed us soon after we had filed for bankruptcy.

You filed for bankruptcy and bought into DVC?

 

[bumbershoot]

10.75% is preferred rate?

I would visit my local bank and see if I could get a better rate. That rate is crazy with todays low interest rates.

If a person can qualify for a $17,000 personal loan at their bank, that's likely a better idea.

For those that can't convince their banks to do that, and don't want to spend the time saving it up, the way Disney does it isn't heinous...they make it BEYOND easy to pay extra (there's a link right there on the website to make extra principal payments in amounts over $10), there are no penalties for paying it off early, it's a monthly bank draft...completely simple.



I would add to ToddyLu's statement something else (I'm paraphrasing someone else's great wording that goes along with my thoughts)...as long as you are very up front with yourself and your checkbook that you will be paying extra in interest, and you're not going to lie to yourself about all of that, then if it's what you need to do, it's not a horrible thing. Just don't lie to yourself about the interest.

 

[jlewisinsyr]

People have mentioned Disney doesn't care about score, I think it's really misleading. They definately pull your credit score (and they will mail it to you after approved/declined), so it is taken into consideration. Are they more lenient on what scores they use in terms of placing people in either preferred or standard financing, yes, but it is still used.

With a score sub-600, I really would be shocked if Disney would take on a loan without a significant amount down (25% - 50%).

 

[MainStreetMouse]

If a person can qualify for a $17,000 personal loan at their bank, that's likely a better idea.

For those that can't convince their banks to do that, and don't want to spend the time saving it up, the way Disney does it isn't heinous...they make it BEYOND easy to pay extra (there's a link right there on the website to make extra principal payments in amounts over $10), there are no penalties for paying it off early, it's a monthly bank draft...completely simple.



I would add to ToddyLu's statement something else (I'm paraphrasing someone else's great wording that goes along with my thoughts)...as long as you are very up front with yourself and your checkbook that you will be paying extra in interest, and you're not going to lie to yourself about all of that, then if it's what you need to do, it's not a horrible thing. Just don't lie to yourself about the interest.

Credit is a good thing ... when used wisely. Without credit we would never have been able to own our home.

Disney's credit makes it easy for people to purchase into DVC .... but is this a wise use of credit? I believe it is not. I am not trying to be snobby but if you can't afford to purchase DVC, or if your bank will not give you credit, or if you have recently filed for bankruptcy then DVC is not for you right now.

We saw how credit near shut down the economy of North America, it really still hasn't recovered and could slip back into a recession / depression if credit is not controlled.

DVC is a luxury, buying it using Disney's credit is not a good idea. Sure many say they plan to pay it off quickly but for evey one that says they will I am sure there are many more who don't or can't.

 

[Sandisw]

If a person can qualify for a $17,000 personal loan at their bank, that's likely a better idea.

For those that can't convince their banks to do that, and don't want to spend the time saving it up, the way Disney does it isn't heinous...they make it BEYOND easy to pay extra (there's a link right there on the website to make extra principal payments in amounts over $10), there are no penalties for paying it off early, it's a monthly bank draft...completely simple.



I would add to ToddyLu's statement something else (I'm paraphrasing someone else's great wording that goes along with my thoughts)...as long as you are very up front with yourself and your checkbook that you will be paying extra in interest, and you're not going to lie to yourself about all of that, then if it's what you need to do, it's not a horrible thing. Just don't lie to yourself about the interest.

That was our thought process. We have been spending between $5000 and $7000 yearly to visit the world for our family of 5. As long as I could own DVC and not exceed these yearly costs, then it wasn't costing me more. Whether I continued to pay the cash rates for my room, or finance charges to DVC, I was still spending X amount of dollars per year on vacation.

And, I agree, as long as someone understands that finanacing DVC will add to its cost and its "value" in terms of savings and is okay with that, to each his own.

 

[SonicGuy]

I am always amazed in this forum how someone can ask such a simple, innocent question and get so much information back from complete strangers about whether they should or should not do something. The OP's question was about how their chances were for financing, not if it was right for them to do so.

Just really frustrates me.

Sorry.

 

[MainStreetMouse]

I am always amazed in this forum how someone can ask such a simple, innocent question and get so much information back from complete strangers about whether they should or should not do something. The OP's question was about how their chances were for financing, not if it was right for them to do so.

Just really frustrates me.

Sorry.

Sonicguy,

This is a discussion board, not just a Q & A board. Most conversations, even those face to face start somewhere and where they end up no one knows or can ever really guess.

See your comment has now changed directions for this thread ... that is called discussions. Don't get frustrated. LOL

Smile, have fun, and welcome to the conversation.

 

[raenyny]

I recently had an interesting credit situation with Disney financing....my credit has always been better than my husbands so most of our bills, car, mortgage etc... are in my name alone.. when applying for financing from Disney I put down both our names and was told yeah no problem then a week after we sent in our contract I recieved a phone call the only way to finance it would be to remove me she felt the debt to income was too high but with just my husbands name on the loan and documents it works so not exactly credit score based since mine is higher but they do have things they take into account when approving the financing

 

[disney ny]

Has anyone used Timeshare Financing which is the one used by the Timeshare Store for resales. That is what we are looking at doing and I am wondering what they look for etc. as I don't think we have excellent credit but certainly not low either. Anyone have any experience with them? We plan to pay it off within the year but want to finance that initial payment first.

 

[bumbershoot]

We saw how credit near shut down the economy of North America, it really still hasn't recovered and could slip back into a recession / depression if credit is not controlled.

DVC is a luxury, buying it using Disney's credit is not a good idea. Sure many say they plan to pay it off quickly but for evey one that says they will I am sure there are many more who don't or can't.

For many, travel is NOT a luxury. It's not for us. We were spending the money on lodging anyway...doing DVC, even paying 10% in interest, is saving us money. You might think it's a luxury, but not everyone does.

Fairly certain that DVC financing isn't what helped to cause the mess 'round here. Fairly certain that it was people thinking that it was a "right" to own a home and credit-granting institutions going right along with that...most of our family and friends went along with that and thought we were nuts for doing so...we were honest with ourselves, and knew that there was just NO way we could afford several hundred thousand dollars worth of debt, and all the other expenses that go into a home, and remained happy renters. MIL lost her home, dad nearly did, my friend who is otherwise very smart was faced with a balloon payment... None of those people owned DVC...they "owned" houses, houses they felt it was a right to own, and didn't THINK it through. Timeshares didn't cause this mess...

Has anyone used Timeshare Financing which is the one used by the Timeshare Store for resales. That is what we are looking at doing and I am wondering what they look for etc. as I don't think we have excellent credit but certainly not low either. Anyone have any experience with them? We plan to pay it off within the year but want to finance that initial payment first.

Totally different financing. As far as I know, they use much stricter standards. As our guide and his boss told us, with Disney, they "are the bank" and they choose...with resale you are going through completely different avenues.

 

[jlewisinsyr]

Has anyone used Timeshare Financing which is the one used by the Timeshare Store for resales. That is what we are looking at doing and I am wondering what they look for etc. as I don't think we have excellent credit but certainly not low either. Anyone have any experience with them? We plan to pay it off within the year but want to finance that initial payment first.

Do you have an idea of what your credit score is? Stating high or low is not very indicative and can be different based on people's opinion. For me, I think sub 720 is a low score, others would think sub 650, etc.

 

[jlewisinsyr]

For many, travel is NOT a luxury. It's not for us. We were spending the money on lodging anyway...doing DVC, even paying 10% in interest, is saving us money. You might think it's a luxury, but not everyone does.

Fairly certain that DVC financing isn't what helped to cause the mess 'round here. Fairly certain that it was people thinking that it was a "right" to own a home and credit-granting institutions going right along with that...most of our family and friends went along with that and thought we were nuts for doing so...we were honest with ourselves, and knew that there was just NO way we could afford several hundred thousand dollars worth of debt, and all the other expenses that go into a home, and remained happy renters. MIL lost her home, dad nearly did, my friend who is otherwise very smart was faced with a balloon payment... None of those people owned DVC...they "owned" houses, houses they felt it was a right to own, and didn't THINK it through. Timeshares didn't cause this mess...

Although credit card debt didn't help the situation, you are VERY correct in your assumptions, mortgage debt was far, far more detrimental to the economic stability of our country, and you can see this by just looking at the once hot markets, these are the ones that saw the largest impact to home values (and continue to have issues), have the largest percentages of subprime, etc. Credit card balances and other non-mortgage based loan balances (think car, personal lines) are a much smaller piece of the credit pie then mortgage based loans (mortgage, 2nd mortgage, HELOC).

 

[PPFDDisneyLover]

OK, I have a question for everyone:

I am ignorant to the prices. I have just begun looking into DVC. What am I looking at for costs? I see there is a price per point, but I thought there was an actual membership cost. My wife and I travel every other year, and each time I seem to get a little better with travel costs, but i'm afraid I might be missing a good thing by not doing the DVC. Thanks for the input!

 

[Chuck S]

The cost per point is your initial buy-in cost, with 160 point minimum if you purchase through Disney. Although Disney will sell new memberships at select resorts with 100 points. After that, there are annual dues per point. These are not "dues" in the sense of a membership fee, but these DVC Dues include maintenance & operating fees for your resort, a reserve fund fee (this pays for scheduled resort rehabs), property taxes, insurance and a management fee to Disney which covers reservation services and "profit." The management fee is set at 12% of the cost other dues items.

Dues increases are limited to a maximum of 15% per year, but dues at resorts (except possibly Vero Beach) have never come close to that 15% increase.

Here is a link to the dues history of DVC. There are two listings for Vero Beach because the resort was never fully built to the original designs because of slow sales. DVC is subsidizing the dues of the original owners to comply with the dues increase increase limit.

DVC Dues History thru 2010