Do you think it is better to be in banked mode or borrowed mode? (m)

[OurDogCisco]

I'm a newbie and interested in what everyone thinks about banking and borrowing. I bought enough points to allow us to stay 9 nights in the summer in a one bedroom or 7 nights between Christmas and New years EVERY OTHER YEAR. The only problem I have discovered is that we'll have 10 points leftover after our 1st visit in the summer of 2005. So, I was thinking instead of taking a 2 bdrm for 9 nights and borrow the difference. But then going forward we'd pretty much be in a borrowed mode. Is that a good idea? What are the pros and cons? I am not interested in renting points at all.

Thanks,
Tina

 

[robinb]

I think being in "banked" mode is better. That's because you have the extra points in case you need them. If you borrow now for a bigger unit you will not be able to upgrade to a bigger unit later in case your kids bring friends or you need an extra studio for friends/family, etc.

I would say you should keep on banking extras until you really need the points.

 

[Betty X]

I try to keep my points always in a borrowed state for the most part. The odd time I have a few leftover in my current use year.

The best part about being in a borrowed state all of the time is that you never lose any points because you forgot to bank etc.

Someone correct me if I am wrong but it has served me well since 1999 with no problems.

Bad part is you have less flexibility because you can only use the 150 points at one time.

If I had discipline I would not go to WDW for a year or two and then I would have 450 points to use!

 

[DebbieB]

I have never borrowed. I prefer not to because I then have greater flexibility if I have to cancel. I have an April use year. If I borrow points for December and then cancel, those points have to be used by March 31. By using current year points, I would still have time to bank if I had to cancel (100% by 9/30, 50% by 12/31). I use the few banked points I have in my May trip, leaving about half of my points for the December trip.

 

[jimmytammy]

Our 2nd year as owners, we were heavily banked. Just used all those pts plus current pts on recent trip. In Oct we will be in a borrowing mode. The reason for that is we will be making two trips in 04 where we usually just take one trip. Trying to get best use out of APs.

Personally I would rather be in a banked position than a borrrowing mode. Thats what is great about DVC, it gives you flexibility.

 

[Happy Birthday Cat]

We are presently banked on one contract and borrowed on another. I think all that matters is that you are using your points and having fun. If you get too hung up on making sure to bank or borrow every year, you miss the point of the flexibility.

HBC

 

[rsschneck]

We have Hilton Head scheduled for end of March 04. I have 8 points that I borrowed for that trip. We have an April use year. So, if I had to cancel those 8 points would be lost. Granted that 8 points is not a lot, but they are MINE and I paid for them!

Anyway, I like to be in a banked mode instead of a borrowed state. I feel more FREE with those banked points!

 

[BillPA]

Just wondering if those that borrow points all the time always have a balance on the credit cards too? And those that bank are members that don't carry balances on the credit cards? Just looking to see if it is a personality trait.

 

[Betty X]

Maybe borrowing vs banking has more to do with how many points you have. I have 150 points and go to WDW every January for as long as my points will allow. It is a nice break from cold winters.

To answer your question about paying off credit cards.....no I don't carry a balance on my credit card. Not sure what it is like in the US but Canadians use debit cards everywhere. I use my credit card rarely....usually just for travel. My experience in Florida is that there is not as much opportunity to use a debit card as there is in Canada.

 

[DeeP]

I am another person that does not really like to borrow pts. It makes me nervous for the same reason stated--what if we have to cancel? Mind you we have never canceled a trip but I guess it is just having a certain personality, like someone else posted!
When I found myself starting to borrow pts, I added on more pts! Borrowing pts does feel like being in debt to me and I hate that feeling!

 

[LR_BCV]

I bank and borrow. I plan to keep doing both. I don't have a problem with borrowing. If I wanted to take an extra long trip and/or friends/family along I would definitely borrow to do so and I can see this happening in 2 or 3 years.

I use my CC extensively (for the points) but never carry a balance. Well, except for my 0% until Feb card but I'll pay that off next month.

 

[Nick@ VB+OKW]

Originally posted by BillPA
And those that bank are members that don't carry balances on the credit cards? Just looking to see if it is a personality trait.

Bill
We usually bank a few pts but we use our credit card for "Everything"(FF miles) and pay it off when the bill comes. By charging everything we have gotten 3 tx to San Antonio, two 1st class seats to Vegas, and 2 tickets to Phoenix just in the last 2 years.

 

[Cruelladeville]

I'm in a borrowing mode right now, due to the fact that I spend about 30 days a year in Florida, but I would rather have banked points because I think I have more flexibility if I want to take a trip. I have a lot of points, but 30 days a year is a lot if you like one and two-bedroom villas. On the other hand, my DB is constantly banked, and that stresses him out because he only takes one trip per year, and he is afraid of losing the banked points. It's almost too much for him, so I am going to take his points to put him in a current use year mode. That way his Feb use year will be easier to handle, and will allow him to take Feb trips, as he wants, rather than forcing him to make a Jan trip just to burn up a few points.

 

[tvwalsh]

I have always been a firm believer in staying borrowed into the next year ( no need for remembering banking dates)... until now!

I would like to make reservations for the DVC's Homecoming, but because it is in late May, if something comes up to stop us from going (sick, elderly parents are the most likely source of trouble) we would lose all the points, since our use year is June.

This is usually not a problem since we are retired and snowbird in January or February.

I guess either position has its advantages and disadvantages.

On the positive side, I have never lost a point in over 11 years of membership!

 

[DisneyHumbug]

I've been in a constant state of borrowing. Who knows what tomorrow will bring?
And I pay my credit cards in full every month.........working on free Southwest ticket #2 for February!

 

[SleepyatDVC]

I think banking or borrowing a few points each year is no big deal. It averages out in the end.

It also depends if you go the same number times and the same number of days at around the same period of the year each year.

Since we go at different times in the year, for different amounts of days, and some years more times then others, I just use whatever points necessary for my desired trips.

Sometimes I bank because I don't use up my yearly allotment and other times I borrow because I need more points than I have available banked and current. I have even borrowed for a last minute trip after I already banked.

We never carry a balance on our credit cards.

Btw, my Aunt who is a charter DVC member has ALWAYS been borrowed to the max every year. They planned it that way from the very beginning. Her DH is in finance and it is his belief that it is a better value for their money. Something about having the use of the next year's points BEFORE having to pay for the maintenance!

They also NEVER carry a credit card balance for the same reasoning - too high an interest rate on their money - thus not the best use of their money.

 

[pmcpmc]

and I use my points the same way to their max. advantage bank and borrow at no extra cost.
what a wonderful system

 

[Halle]

We have 309 points and have been borrowing every year. When we joined in 93 we got those free park tix and we felt better to borrow and take advantage of that perk. 2004 will be the first year that we may bank points!!!! I'm soooo worried that I'll forget to bank them, may have to have my husband write me a computer pop up reminder program!

 

[kathleena]

My opinion is that if you travel every year, you can't really go wrong - except if you are scheduling trips close to the end of your use year. Then a cancellation could leave you with minimal time to use them up.

We travel every year and have banked up to 100 points each year. For Aug 2003 we just banked 87 into 2004 that we will use up next December.

If we borrowed, I would be concerned about using the points. At least if you bank, your next trip you can use those points and bank some of that years into the next.

If we didn't travel every year - banking would be the only way to go.

And August use year is perfect for our travel habits. We don't travel between mid-May to late Oct so always have plenty of time to bank and use.

 

[Laurabearz]

So far we have been in borrow mode... lots of big trips and such, where we have had to combine home resorts to book trips, but our goal is to rotate our 3 base contacts... OKW, BVC, and BWV on an every other year basis...