Disney's credit check - what gives

[Kurby]

I'm also posting this in the DVC section but I thought i'd ask all the Canadian's what their experience is.

I've read a few people's post in the DVC section about how they have bad credit (scores in the 600's - we don't do that here in Canada so i dont know if that's bad, pretty bad or really bad) and they get perfered credit interest.

we have nothing on our credit, we have excellent credit as a matter of fact and yet we got standard credit.

i don't understand that - is it because we are Canadian?

has anyone with excellent credit received the standard rate?

 

[blizzard]

It was a long time ago (1997) when we bought, but I don't think they even checked our credit. (They didn't have preferred/standard financing then - I think our financing was based on how much we put down, and because we weren't from the US, we had to put down more than the smallest amount)

 

[ducklite]

I'm also posting this in the DVC section but I thought i'd ask all the Canadian's what their experience is.

I've read a few people's post in the DVC section about how they have bad credit (scores in the 600's - we don't do that here in Canada so i dont know if that's bad, pretty bad or really bad) and they get perfered credit interest.

we have nothing on our credit, we have excellent credit as a matter of fact and yet we got standard credit.

i don't understand that - is it because we are Canadian?

has anyone with excellent credit received the standard rate?

Actually a US score above 620 is considered good credit. Above 680 is generally considered great.

Anne

 

[bavaria]

keep in mind that you have no credit history built in the US

 

[F4disneyfan]

Also note that a credit check in teh US doesn't show on your Canadian credit report. A beacon score in Canada below 650 is considered poor credit and a high credit risk.

 

[Kurby]

wouldn't they know that Canadian's wouldn't have any credit history in the US? why would they even ask for our SIN's

it seems a bit odd that they would even say to Canadian's we could get prefered rates when we have no history in the US

I have them looking into it and they'll review it manually - maybe we'll get a different outcome.

 

[dsneygirl]

Do you have to go through Disney Financing? Have you looked into a line of credit with your bank? I'm sure you can do better than 10% or 11%.

 

[surfer_ed]

My understanding of it is that the preferred rate is actually offerred if you do direct debit form a US Bank...at least that is they way it was when we bouth. The 11% rate is if you do payment by credit card.

I don't think Disney assigns a risk premium. The comment by bavaria is correct, unless you have US res or a previous US loan you have no credit history down there.

We opened a US Bank account for direct debit but will most likly move the loan to our Canadian bank for a better rate. Orginally went with Disney for the flexibility.

 

[GoofyArt]

Also note that a credit check in teh US doesn't show on your Canadian credit report. A beacon score in Canada below 650 is considered poor credit and a high credit risk.

Not entirely true! When we applied for DVC financing three years ago, they did a credit check. In checking my recent Canadian credit report I can see a request for my credit profile from DVD (Disney Vacation Development). That could well be because we financed with payments to our CDN credit card.

 

[CanadianGuy]

I believe that since Disney is licensed to sell vacation timeshares in the province of Ontario ... they can and do check Canadian credit reports for those living in Ontario.

Since they are not licensed to sell or finance vacation timeshares in the other provinces.. I suspect they cannot offer financing or check Canadian credit for those living in other provinces.

Makes sense no?

Knox

 

[ducklite]

I believe that since Disney is licensed to sell vacation timeshares in the province of Ontario ... they can and do check Canadian credit reports for those living in Ontario.

Since they are not licensed to sell or finance vacation timeshares in the other provinces.. I suspect they cannot offer financing or check Canadian credit for those living in other provinces.

Makes sense no?

Knox

That makes perfect sense.

Anne

 

[FayeW]

Also note that a credit check in teh US doesn't show on your Canadian credit report. A beacon score in Canada below 650 is considered poor credit and a high credit risk.

Actually, for mortgage purposes anything over 600 is considered good credit. I get "A" rates for my clients for 100% financing and extended amortization (up to 40 yrs) with 600 Beacon or above. Now, if we are doing stated income products because we can't prove income, the Beacon requirements are higher.

For personal loans and credit lines, most interest rates are tiered, so the higher the Beacon, the lower the rate.

 

[Best_Vacation_EVER!]

we have nothing on our credit, we have excellent credit as a matter of fact and yet we got standard credit.
QUOTE]

It might be a good idea to request a credit report that shows whats on your credit file and what your actual score is --- you can get those through the two credit bureaus that operate in Canada. (Canada does have credit scores but they're computed differently than the scores in the US I believe.) We check ours regularly since we had a credit card that was potentially affected by a recent hacking event.

You mention you "have nothing on your credit" --- but that can actually have an work agains you on your credit score. If you had no current loans, mortgages, credit cards you can actually have a worse credit rating than someone with more debt that they keep current and within acceptable debt/limit range. There are also certain types of credit cards that can show up strangely on your credit report (ie. show largest balance even if it's been already paid) --- I think these are the ones with no preset limit and ones from a particular issuer -- not sure which issuer though. Check the websites of the Canadian credit bureaus and it will tell you the criteria they use.

Good luck I'm sure DVC will be able to clear everything up for you.

 

[Kurby]

we have nothing on our credit, we have excellent credit as a matter of fact and yet we got standard credit.
QUOTE]

You mention you "have nothing on your credit" --- but that can actually have an work agains you on your credit score. If you had no current loans, mortgages, credit cards you can actually have a worse credit rating than someone with more debt that they keep current and within acceptable debt/limit range. There are also certain types of credit cards that can show up strangely on your credit report (ie. show largest balance even if it's been already paid) --- I think these are the ones with no preset limit and ones from a particular issuer -- not sure which issuer though. Check the websites of the Canadian credit bureaus and it will tell you the criteria they use.

By "nothing on our credit" i meant we have no bankruptcy, no default payments on our credit card which we have 1
we don't have a mortgage but do have a loan we just received.

we do have excellent credit and pay our bills on time including our credit card.

if it's only a matter of not having any US credit that fine i understand they should be able to view our credit score because we live in Ontario so really we should have gotten preferred rates.

 

[F4disneyfan]

My understanding of it is that the preferred rate is actually offerred if you do direct debit form a US Bank...at least that is they way it was when we bouth. The 11% rate is if you do payment by credit card.

I don't think Disney assigns a risk premium. The comment by bavaria is correct, unless you have US res or a previous US loan you have no credit history down there.

We opened a US Bank account for direct debit but will most likly move the loan to our Canadian bank for a better rate. Orginally went with Disney for the flexibility.

We called our guide and that is exactly it you get a better rate if you have a US account set up and make it a direct debit from there if you use your CC it is a higher interest rate.

 

[F4disneyfan]

Actually, for mortgage purposes anything over 600 is considered good credit. I get "A" rates for my clients for 100% financing and extended amortization (up to 40 yrs) with 600 Beacon or above. Now, if we are doing stated income products because we can't prove income, the Beacon requirements are higher.

For personal loans and credit lines, most interest rates are tiered, so the higher the Beacon, the lower the rate.

Yes exactly mortgage rates are different than regular credit ie cards loans etc.

 

[Kurby]

My understanding of it is that the preferred rate is actually offerred if you do direct debit form a US Bank...at least that is they way it was when we bouth. The 11% rate is if you do payment by credit card.
.

the only problem with that is she did our credit check and told us we were standard rate before she asked how we were paying the $500 down payment and also said that she didn't need to know how we were going to handle the balance of the down payment or monthly payments - it would be done with our paperwork

so how would she know if we had a US bank account?

 

[F4disneyfan]

the only problem with that is she did our credit check and told us we were standard rate before she asked how we were paying the $500 down payment and also said that she didn't need to know how we were going to handle the balance of the down payment or monthly payments - it would be done with our paperwork

so how would she know if we had a US bank account?

Most times they don't ask as a majrity of us use our CC for monthly payments so I guess they assume is it right no but it is the norm.

 

[Tabetha]

Perhaps it was also related to only putting $500 down? I got a preferred rate on my loan with Disney, but I put down a couple grand.

 

[Kurby]

Perhaps it was also related to only putting $500 down? I got a preferred rate on my loan with Disney, but I put down a couple grand.

nope had nothing to do with that - she did the credit check before asking how much we would be putting down - it wasn't until later that she asked if we were going with 10% and it seems like $500 is the standard predeposit then you get your paper work and pay the balance then the monthly fees.