DVC and credit report?

[lenshanem]

DVC financing isn't reported, correct? So it doesn't show up on your credit report? Would a guide know the answer to this question you think?

I'm asking for someone cause they are about to buy a new home and didn't know if they should wait on DVC until after they buy the house.

If it does show up, does financing on a timeshare look bad???



Thanks!

 

[crzy4mk]

I haven't joined DVC (yet, I plan to soon!), but I spoke with a sales rep yesterday about this very thing. He said that the financing of DVC would not show up on a credit report, but obviously when they run the initial credit check on you, it will show up that someone has recently checked your credit. My experience has been that if you have too many credit checks run over a certain period of time, that can raise a red flag for some mortgage companies.

 

[gppnj]

I'm no expert, but someone else asked this recently, and the response was that as long as payments are made on time, it does not show up on one's credit report. I doubt one late payment will get reported to the credit bureaus, but I'm sure a default would.

 

[gppnj]

My experience has been that if you have too many credit checks run over a certain period of time, that can raise a red flag for some mortgage companies.

That is correct. Too many credit checks can also lower one's credit score, though not by nearly as much as a late payment would. Records of credit checks stay on one's credit record for two years.

 

[spiceycat]

I don't know.

I though it wasn't reported on your credit check either - it is certainly not on mind.

but others say it 'was' very loudly.

So I don't know what to say.

 

[Cruelladeville]

It does not show on your credit report that you are making payments to Disney. I have purchased 4, not one showed up, and I was in the middle of refinancing my house at the time. Now, if you make late payments, that WILL show up if you are pretty consistently late. For those who have kids getting ready for college, it also will not show up on FAFSA, so you don't have to report it there, either, unless you are compulsively honest.

 

[Meliechick]

I check my credit score twice per year and have never had my DVC show up.

 

[Shawn]

I check my credit score twice per year and have never had my DVC show up.

In case some folks don't know, a federal law has been passed that allows you to receive your credit report ** for free ** from each of the big 3 reporting companies once a year. This is not a sales gimmick, you do not need to supply credit card number or anything like that.

Being a newbie here, I can't post the actual address for the web site but the base name is annualcreditreport and you should be able to find it from that.

This means, you can get reports from all three at once, each year, or you can do what I've done and request a report from a different company every four months. I've set up a folder in my file cabinet, and have started saving a history of my reports. You can choose to have the reports mailed to you, or you can view them online and then print and save them. I do the latter, but have plenty of paper and ink in your printer -- the reports can easily be 20+ pages.

This is a great resource for those concerned about identity theft or who simply want to monitor their credit reports. You may find that you have accounts open that you weren't even aware of, and you can then make phone calls or write letters to close out the old accounts.

-Shawn

 

[CRobin]

In case some folks don't know, a federal law has been passed that allows you to receive your credit report ** for free ** from each of the big 3 reporting companies once a year. This is not a sales gimmick, you do not need to supply credit card number or anything like that.

This is true, but it is being deployed geographically, and those of us in the East cannot get free reports until September.

Here is the link with more information:

http://www.annualcreditreport.com

 

[gppnj]

I just wanted to clarify something. There are two different things that conceivably could show up on one's credit report. This thread touches on both, and some people might be confusing the two.

1. When you first apply for credit, Disney runs a credit check on you. Whenever anyone checks your credit report, that inquiry is noted on your credit report. (The exception is when you look at your own credit report; that's referred to as a "soft inquiry," and no record of it is kept.) If you have too many people looking at your credit report, that can be a sign to potential creditors that you might be in a financial bind. I don't think there's any way for a potential creditor to check your credit without it being noted on your credit report. If such an inquiry is not noted, it's probably only because the credit bureau goofed (which happens).

2. Let's say Disney approves your financing, and you start paying. Every month when you make a payment, Disney has the option of reporting to the credit bureaus that you owe $x and that you have been making payments on time. The advantage to Disney doing this is that it could enhance your credit rating by showing potential creditors that you have a history of paying on time. The disadvantage to Disney doing this is that it shows potential creditors that you already owe another party (in this case, Disney) $x, which could affect that amount of credit a potential creditor would be willing to extend to you. For better or worse, the concensus is that Disney does not report on-time payments to the credit bureaus. Apparently, Disney will only report information about you to the credit bureaus if you're seriously late or go into default. As a result, as long as you pay on time, future potential creditors would have no way of knowing that you owe any money to Disney. If Disney's original inquiry was made less than two years ago, the potential creditors would see the inquiry on your report, but they'd have no way of knowing that Disney actually approved the credit and that you executed a deal (again, unless you stopped paying on time).

I hope that helps.

 

[lenshanem]

Thanks CRobin for that link. I actually live in Georgia and I was able to pull up DH's credit reports. DVC didn't show up on any of the three reports and I was happy to see everything was correct on the reports minus a few weird misspellings.

I plan on checking mine, too when I get the chance to print all those pages out! YIKES! I was surprised how far it went back???

 

[JimC]

Whether DVC shows up or not on a credit report is not the issue. If you apply for financing and are asked to list all obligations you must disclose the timeshare financing.

 

[JimC]

In case some folks don't know, a federal law has been passed that allows you to receive your credit report ** for free ** from each of the big 3 reporting companies once a year. This is not a sales gimmick, you do not need to supply credit card number or anything like that.
-Shawn

This is true but getting the "free" reports is not so easy. THe program is still being rolled out. The northeast does not participate until I believe September or October.

It costs less than $50 to get all three reports and your FICO scores (the key number to your credit worthiness) from MyFico.com. It is well worth the money once a year.