Down payment % question

[bostontim]

I have read that the down payment calculation has changed since they now apply incentives to the financed balance (speaking of Disney financing), but has the down payment percentage changed? I have read some posts that talk about 15 and 20 percent, but I thought it was still 10%. Can anyone confirm this?

 

[disneynutz]

Last I read it is 10% - 15% depending on the program.

Anyone have additional info?

 

[Sandisw]

When buying through Disney, the down payment is still 10%, unless you take the Disney Visa incentive of 2 AP's...then you must put down 15%.

The down payment is calculated on the full price of the contract before any incentives. For example, a BLT, 160 point contract @ $112 = $17920. The down payment would be $1792.

 

[erionm]

As the others have stated, the down payment starts at 10%. I've seen a couple of posts where people were asked to make a larger down payment based on their credit.

 

[LIFERBABE]

For the new cruise incentives, you may have to place up to 25% down. My guide explained to me that depending on your cruise date they are requiring a down payment equal to 25% to cover the cost of the cruise in case you default before making enough payments to cover the cost.

I purchased under the old incentive, so I only put down 10% on my add on but I thought it was interesting that the new requirements can range from the full 10 to 25%.

Before the new incentives, your out of pocket down payment required was around 3% because the discount applied to the downpayment.

 

[SeedsLuvDisney]

I have a question regarding financing... Is it score driven or not?

Why I ask is a few months ago we closed most of our credit card accounts, we went from about 15 to just 2, a Target Visa and a gas card, so whats happened is our utlization has went from about 10% to over 60% as we have about $6K on our $10K Target card, so our scores have dropped into the 660-680 range.. I am ashamed to admit this, but we do have a few lates showing after a job loss, but that was about 4 years ago..

In a perfect world we would pay off the card first and then buy, but we are planning a June 2010 trip and would prefer to buy sometime before July..

 

[tkh2009]

I have a question regarding financing... Is it score driven or not?

Why I ask is a few months ago we closed most of our credit card accounts, we went from about 15 to just 2, a Target Visa and a gas card, so whats happened is our utlization has went from about 10% to over 60% as we have about $6K on our $10K Target card, so our scores have dropped into the 660-680 range.. I am ashamed to admit this, but we do have a few lates showing after a job loss, but that was about 4 years ago..

In a perfect world we would pay off the card first and then buy, but we are planning a June 2010 trip and would prefer to buy sometime before July..

I am not totally sure how they look at it all but I was told before we did it that standard financing is pretty easy to get & that most people get that compared to the preferred. Dh's credit report doesn't look so hot due to some things dealing with his previous marriage & divorce & his score is lower than yours & we were able to get approved for the standard financing no problem. It seemed to me the biggie was your debt/income ratio they care about.

As for the down payment amount we did a 100pt akv buy & we had to put down $500 & disney put in $625 I believe so that would have been around 10% required for us.

 

[Crystal_27]

I have a question regarding financing... Is it score driven or not?

I believe it is score-driven. When we bought in March, 2009 (at SSR) we received a FICO disclosure when we came home which had our FICO score listed on it. That said, what I believe happens is that, when you make your deal, your SSN is input into the financing system and it either comes back with the standard or preferred rate. However, if you have any questions about what score translates to what rate, your Guide should be able to easily answer them. Hope that helps and happy DVC shopping!

 

[jlewisinsyr]

I have a question regarding financing... Is it score driven or not?

Why I ask is a few months ago we closed most of our credit card accounts, we went from about 15 to just 2, a Target Visa and a gas card, so whats happened is our utlization has went from about 10% to over 60% as we have about $6K on our $10K Target card, so our scores have dropped into the 660-680 range.. I am ashamed to admit this, but we do have a few lates showing after a job loss, but that was about 4 years ago...

The financing is score driven, prior to the financial disaster it wasn't unheard of 680 + getting preferred financing, now it's more 740 +. That said, for standard, the scores are within your range. I'm not sure how much other info they pull, but when we applied I'm pretty sure we didn't even fill in our income information (I'm trying to think for sure, but I'm pretty sure), so I'm not sure if they pulled that out from other data or not.

Also, although the damage has already been done, what made you consider closing so many accounts, and did you make sure you at least closed the newest first? Closing accounts can be a really bad thing if you do it aggressively and without considering how long an account has been open for.

 

[supersuperwendy]

We bought in November with a "gift card" promo and got in for only $500 down! The "gift card" made up the rest!

 

[Crystal_27]

We bought in November with a "gift card" promo and got in for only $500 down! The "gift card" made up the rest!

Yeah, our discounted point cost went toward our down payment when we bought in March too. However, that program was discontinued in April, 2009 (and, actually, if you were able to change your incentives to the new ones offered in April, you were required to put down the full 10% down as well).

 

[pumpkinfish]

DH and I are in the middle of our contract and our guide said if we wanted to finance through Disney it would be 10.75%. I know there is a 14% interest rate too. Didn't even mention credit score. We are placing a substantial down payment so maybe this was taken into consideration?
My score is right under 700 due to when the credit card companies share the info with credit agencies (never carry over debt but have heavy use) but DH has a strong score.

 

[jlewisinsyr]

My score is right under 700 due to when the credit card companies share the info with credit agencies (never carry over debt but have heavy use) but DH has a strong score.

Heavy use shouldn't impact your score as long as your debt to line levels are kept low. If you pay off your balance every month or even over a couple of months your score should bounce right back.

I'd look into this more unless I'm misunderstanding what you said.

 

[TyGuy]

I have a question regarding financing... Is it score driven or not?

Why I ask is a few months ago we closed most of our credit card accounts, we went from about 15 to just 2, a Target Visa and a gas card, so whats happened is our utlization has went from about 10% to over 60% as we have about $6K on our $10K Target card, so our scores have dropped into the 660-680 range.. I am ashamed to admit this, but we do have a few lates showing after a job loss, but that was about 4 years ago..

In a perfect world we would pay off the card first and then buy, but we are planning a June 2010 trip and would prefer to buy sometime before July..

Closing accounts and consolidating balances both can have a negitive impact on your credit score. One of the factors in determining your FICA score is how much debt you are carrying vs what your credit limits are. It's better for your score to have lots of credit available but little of it used.

 

[Mtnman44]

Yes, closing card accounts often lower your score. Best to keep a card or two open, especially if you've had it for a number of years. Having a long established relationship with creditor helps as well as having unsued credit card lines helps lower your credit used to credit available ratio. Just cut them up and forget about them, don't use them or you wind up digging yourself into a bigger hole! You may want to use them to buy a small thing one a year or so as the card issuers are starting to be very aggressive about closing inactive accounts.

 

[pumpkinfish]

Heavy use shouldn't impact your score as long as your debt to line levels are kept low. If you pay off your balance every month or even over a couple of months your score should bounce right back.

I'd look into this more unless I'm misunderstanding what you said.

Actually, I pay off our cards every week but tend to always have some sort of balance, due to using them for everything (to get our pts/rewards). So some bill is always being paid or buying groceries or buying gas. When the credit companies report our statements the balance only is reported (not that I'm paying it off every week). So because of our heavy use (I see where you are mis-understanding) it hurts my score (I have the reward credit cards). Like right now, I show a balance of $1200 on one of my cards but haven't had that since the 3rd week of March and had that paid off. If I stopped using the cards my score would go back up. Sometimes we don't use the cards as much or when the CC companies report to the credit agencies match when I pay the card off that week so my score increases. I've seen the score range 20-30 pts at a time due to this.

Don't worry, it's no biggie. I follow my credit report every month and spend most my time on the Budget boards here. I appreciate your concern tho .

 

[jlewisinsyr]

Actually, I pay off our cards every week but tend to always have some sort of balance, due to using them for everything (to get our pts/rewards). So some bill is always being paid or buying groceries or buying gas. When the credit companies report our statements the balance only is reported (not that I'm paying it off every week). So because of our heavy use (I see where you are mis-understanding) it hurts my score (I have the reward credit cards). Like right now, I show a balance of $1200 on one of my cards but haven't had that since the 3rd week of March and had that paid off. If I stopped using the cards my score would go back up. Sometimes we don't use the cards as much or when the CC companies report to the credit agencies match when I pay the card off that week so my score increases. I've seen the score range 20-30 pts at a time due to this.

Don't worry, it's no biggie. I follow my credit report every month and spend most my time on the Budget boards here. I appreciate your concern tho .

You must have low credit limits for $1,200 in O/S balances to affect your score. I revolve through thousands of dollars a month (and subsequently pay it off) and my score is pushing 800, but then again I have about $100,000 in credit limits.

 

[bumbershoot]

The financing is score driven, prior to the financial disaster it wasn't unheard of 680 + getting preferred financing, now it's more 740 +.

Hubby's is less than 680, and he was approved for the lower interest rate. That was in mid-March.

DH and I are in the middle of our contract and our guide said if we wanted to finance through Disney it would be 10.75%. I know there is a 14% interest rate too. Didn't even mention credit score. We are placing a substantial down payment so maybe this was taken into consideration?

Did your guide already run your info? It's instantaneous...hubby was on the phone after giving the info, expecting our guide to say "OK we'll send this off and we'll find out in a week or two", and instead, a second later the guide said "and how would you like to pay the rest of the down payment?" (we only paid 10%, and since it was March we had the giftcard making up around half of it, but we had no cruise incentive). It's immediate through their computer. So if you'd already given SSN etc, he might have already gone through the process, so he KNOWS what he is talking about, specifically, with you.

 

[pumpkinfish]

You must have low credit limits for $1,200 in O/S balances to affect your score. I revolve through thousands of dollars a month (and subsequently pay it off) and my score is pushing 800, but then again I have about $100,000 in credit limits.

That's exactly it. I don't have "high" credit limits so it really affects my score. No biggie tho
Congrats on your score though...that's awesome!

Did your guide already run your info? It's instantaneous...hubby was on the phone after giving the info, expecting our guide to say "OK we'll send this off and we'll find out in a week or two", and instead, a second later the guide said "and how would you like to pay the rest of the down payment?" (we only paid 10%, and since it was March we had the giftcard making up around half of it, but we had no cruise incentive). It's immediate through their computer. So if you'd already given SSN etc, he might have already gone through the process, so he KNOWS what he is talking about, specifically, with you.

That's the thing, he didn't get that info. This is my first time buying into DVC and wasn't sure how that part of the process went. All i know was he sent out paperwork and to call when it arrives. Should I call and ask him about that?

 

[bumbershoot]

That's the thing, he didn't get that info. This is my first time buying into DVC and wasn't sure how that part of the process went. All i know was he sent out paperwork and to call when it arrives. Should I call and ask him about that?

What paperwork did he send out (do you know?)?

I'd call and ask for more info.

Funny, I thought my (personable, fun, nice, and funny) guide (that I like) was a bit flaky, but I'm hearing stories today on these boards that make me want to HUG our guide!!!!! He kept us really aware of everything, even though he went on vacation immediately after we started things (thankfully we knew he was going on vacay).