DVC financing with Poor / Bad Credit History

[100percentDisney]

Has anyone (or heard of anyone) been turned down by DVC financing for poor or bad credit history? How much financial information do they want to know?

 

[Jacksmom99]

I haven't heard of anyone being turned down. In fact, my SIL received financing and she does not have a great credit history. I would think that if you can make the monthly payments and have the down payment, than Disney would be willing to finance. After all, if someone doesn't make their payments, Disney just takes back the points and sell the allotment to someone else. I don't see it as a huge risk for them since DVC is so poplar right now. Maybe they would require a larger downpayment or give someone a higher interest rate if they felt there was some kind of risk.

 

[Dreamfinder2]

I'm only aware of one case in which someone was turned down, but that was because Disney asked for a larger down payment than typical and the party in question didn't feel like they could do it.

Their loan application is pretty standard stuff: household income, mortgage, outstanding debts. They'll also want a couple of months worth of pay stubs or a tax return if you're self-employed. And they WILL check your credit history with Equifax or another entity.

But, honestly, I think they'll finance virtually ANYONE. They may ask for a larger down payment, or a shorter term, but it tends to be painless. And Disney financing doesn't show up on any credit report (or, at least, that once was the case.)

I will say that we had some junk showing up on our credit report from a crisis period five or six years earlier, but for us it was absolutely painless. No questions were raised, but we did put down a significantly larger down payment than they asked for.

 

[sgtpet]

They will take anybody they can. They need somebody to go to the parks, nobody else is according to Disney.

 

[ZerasPride]

Another suggestion is to "pre-qualify". We did that. I called my rep and asked to have the application faxed to me. DH and I filled it out and faxed it back. We had our approval within two days!

Hope to welcome you home soon!

 

[kevind65]

We had a similar situation. We sent in all of our paperwork, then we got a call saying that they needed another 20% down. We had a bankruptcy five years ago on my husband's business. I guess I understand. I know that it goes with the territory, but it was still puzzling. If we don't pay, they take back our points. I figure that is the price you pay. At least we are able to do something like this. A bigger down-payment just means less to pay off.

 

[rtp-resident]

Disney still does not list their financing on your credit report, according to my guide. I know this is true in my case, because I have checked.

 

[Terry S]

My parents also had a bankruptcy on their credit and DVC asked them for an additional 10% down on top of the 20% that they had already put down.

 

[Starshine]

Here's what happened to us with our financing. We got married last October and charged everything to our credit cards with the plan of refinancing our home equity loan to pay them off. We did the refinance about a month before we applied for the DVC financing. When I filled out the DVC app, I noted that everything had been paid off by our new HE loan. But all the credit cards were still showing on our credit report when DVC pulled it, and they called me requesting proof that the cards had been paid off.
They mentioned that reason they needed the proof was that with all those credit card balances, our debt to income ratio was too high for them to approve us.

The point of my long drawn out story is that they do check debt to income, and had we not been able to prove that the credit cards were paid I don't know what their next step would have been. I'm not sure if they would have given us some other options or not, but that certainly may have been a case where they would request a higher down payment, because that would have lowered the debt ratio.