Do You Have to Finance through DVC?

[Suzanna1973]

My sister and I are looking into joining DVC and we were wondering...if purchasing a new contract, do we have to finance through DVC or can we finance with our own credit card that has a low interest rate? Also, if we don't finance through DVC do we still save the $1600 up front?

Any help would be greatly appreciated.

 

[gkrykewy]

You do not have to finance through DVC, and you will still get the bonus/credit. The only risk is that you'll then have a very high credit card balance, with might negatively impact your credit.

 

[LIGrumpyGirl]

We financed through Disney...then "paid off" that loan and got A LOT of Visa Disney Points!!! Is that possible? Might as well get a reward...

 

[FreeTime]

If you have too finance, I would do so through DVC. The inquiry will show on your credit, but the loan will not. I wouldn't use the cc as things could happen to make your interest rate change. As the last poster suggested, finance and then make some large payments that you can pay off with your cc.

 

[Mule2007]

You don't have to finance with Disney - you can put it on your CC and pay it off over time or you can payoff the CC with a bank loan and structure your payments the way you'd like. Any Disney incentives will still be available whatever your choice.

Mule

 

[RobDoc]

The financing thru Disney is set up as a mortgage and many will be able to claim the interest paid as a tax deduction. You may not have that option using a credit card - so if that would benefit you, it might be worthwhile checking with your tax advisor before deciding.

 

[Suzanna1973]

Thank you! My sister was wondering if the interest could be claimed like a mortgage. Thank you all for your information. It was very helpful!

 

[Caskbill]

If you finance through a CC, then you should put that CC away and not use it anymore until the balance is paid.

This is because all payments are applied to the lowest interest rate balances first. Thus any additional regualr charges you make would be at the higher regular interest.

Example, you have a CC with an interest rate of 18%, but you pay the balance in full each month so you never pay interest.

They offer a low interest for balance transfers, etc at 4% so you use this to charge Disney DVC. Your balance is $15000 for example.

You charge an additional $200 during the month as regular charges.

You pay $500 for the month, but the whole $500 goes toward the 4% loan balance and none of it goes toward the $200 you charged that month. That $200 then starts to acquire interest at 18% for the next few years, until the original low interest $15,000 is paid in full.

Every payment you make will apply toward the lower interest balance first before any is applied to higher interest balances. You cannot for example pay $500 and apply $200 toward the higher interest balance and the remaining $300 toward the lower interest balance.

 

[n2mm]

We took out a small equity loan (3 yrs @ 5%) -- then paid our DVC with our Disney Visa (in 3 installements, because we maxed it out each time), then paid the Disney Visa with the equity loan. It took about 4 weeks total time to wait for the charges to show up on the cc, then I transferred the payment and called my guide and told her to charge my card again. It took a little work on the part of myself and my guide, but got it done by the closing date and ended up with $330 in Disney reward points. And paid no interest on my Disney Visa. And get to claim my equity loan interest on my taxes.

 

[flyerron]

You can charge DVC membership to your credit card & get the points then take out a home equity loan at a much more favorable rate & pay off the cc. You can call your cc company & have them give you a temporary increase in your credit limit for the above purpose.