DVC loan payoff question

[KingdomHearts]

Hey everyone! We have a DVC direct from Disney with a loan through them. Do you know if we payoff the loan, the interest has to be paid as well (like a car loan)? Or do you pay off the principal and the loan is then satisfied? TIA!!

 

[erionm]

Or do you pay off the principal and the loan is then satisfied? TIA!!

^^ THIS ^^

You can get a payoff amount online.

 

[wnielsen1]

Well, you are responsible for interest every day until the loan is paid off (just like a car loan). Like erionm said, you can get the payoff amount online - this would include any interest you have already incurred. Paying it off will then stop any future interest from accruing.

 

[ElizabethG]

There is no penalty for early payoff.
I have never had a car loan that had a penalty either, however.

We bought our last contract on a cruise. I paid it off about four months later. I only paid interest for the time I held the loan.

 

[MikkyMar]

Does anybody know if paying off a loan earlier influences your credit score? I always paid for my credits on time, but the last time I paid it off a loan much sooner. Now, when I checked my credit score, it surprised me. I have lower than 600 score. And I've got refusal to get another loan. I was suggested to go for a loan for those who have a bad credit score, like the ones stated at https://bnlfinance.com/peerform/, but I'd like to understand why my score decreased. Is it linked somehow?

 

[TraderStitch]

DVC loan does not do anything to your credit. My small loan with them never hit my credit report.

 

[OlieRow]

Does anybody know if paying off a loan earlier influences your credit score? I always paid for my credits on time, but the last time I paid it off a loan much sooner. Now, when I checked my credit score, it surprised me. I have lower then 600 score. And I've got refusal to get another loan. Is it linked somehow?

It's not uncommon for your credit score to drop a little after paying off an loan, especially if you don't have any other installment accounts or the ones you do have are smaller balances. Not 100% sure the logic behind that.

 

[pixieprincess925]

Does anybody know if paying off a loan earlier influences your credit score? I always paid for my credits on time, but the last time I paid it off a loan much sooner. Now, when I checked my credit score, it surprised me. I have lower then 600 score. And I've got refusal to get another loan. Is it linked somehow?

I would check the full credit report if there is something that looks off. Too many reports in the news these days of identity thieves taking out loans and such in your name. Many of the credit sites will also give insight into what actions may drop a credit score

 

[LadybugsMum]

Does anybody know if paying off a loan earlier influences your credit score? I always paid for my credits on time, but the last time I paid it off a loan much sooner. Now, when I checked my credit score, it surprised me. I have lower then 600 score. And I've got refusal to get another loan. Is it linked somehow?

DVC does not report anything to the credit bureaus; so you credit score should not be affected in any way. It would have to be something else affecting your credit.

 

[beldred]

Does anybody know if paying off a loan earlier influences your credit score? I always paid for my credits on time, but the last time I paid it off a loan much sooner. Now, when I checked my credit score, it surprised me. I have lower then 600 score. And I've got refusal to get another loan. Is it linked somehow?

I advise signing up on Credit Karma. It's a very reputable site that you can see and track all the details of your credit score. It will tell you what exactly what brought your score down. And also give you tips on bringing it up, btw.

 

[bumbershoot]

I always paid for my credits on time, but the last time I paid it off a loan much sooner.

If you mean credit cards...if you were in the habit of paying it down through the month, or trying to keep it at zero most of the time, that can harm your credit. They need to see that there was some use of your credit. Credit scores are about how you USE credit, not how you avoid it. By no means am I saying to delay paying so you owe interest on a credit card, but if you pay simply the statement balance on a current credit card you won't pay interest AND the credit bureaus will see usage.

Anyway, just in case you fall into the realm of trying to keep it at zero, that might be a cause.

DVC never hit my then-husband's credit report.