Financing/payment questions

[DonMacGregor]

I've heard this as well from other sources here, curious as to why they do that? Is there some benefit to them for not reporting?

There's no real property that they have to either repossess or go through a lengthy foreclosure process on (they don't have to evict anyone, for example), so they can offer the financing to anyone regardless of credit rating (and even if they do pull a report for the lower interest option, it's only a soft pull). It's all about making it easier to take your money. Plus, they are self-financing so it's not really to their benefit.

ETA: if you've been an owner for more than a year and want to add on points, they won't even do another soft credit pull.

 

[DonkeyHoTay]

I've heard this as well from other sources here, curious as to why they do that? Is there some benefit to them for not reporting?

I would think the opposite is true - DVC can wield more influence over defaults by reporting to the agencies. But, it's a nice benefit for customers not to be burdened by more debt reported on their credit reports.

 

[DonMacGregor]

I would think the opposite is true - DVC can wield more influence over defaults by reporting to the agencies. But, it's a nice benefit for customers not to be burdened by more debt reported on their credit reports.

I don't think timeshare defaults are looked at with much negativity by most mainstream lenders, even if DVC isn't your typical timeshare lender.

 

[pangyal]

We also do short-term “bridge” financing for our contracts due to the structure of our finances and when things come to fruition so to speak. Both Disney (for direct) and Vacation Club Loans (for resale) will allow you to use a credit card for payments. On Chase Sapphire, it codes as travel, 2X, so we have flown for free many times thanks to this. It actually works out to a bigger savings in the end for us specifically because Canada’s flight costs are insane and we get more value out of the points than we pay in interest for the short duration before paying off the loan.

 

[Sandisw]

We also do short-term “bridge” financing for our contracts due to the structure of our finances and when things come to fruition so to speak. Both Disney (for direct) and Vacation Club Loans (for resale) will allow you to use a credit card for payments. On Chase Sapphire, it codes as travel, 2X, so we have flown for free many times thanks to this. It actually works out to a bigger savings in the end for us specifically because Canada’s flight costs are insane and we get more value out of the points than we pay in interest for the short duration before paying off the loan.

If you finance with Disney, you can make the monthly loan payments with a CC?

 

[davidhr]

If you finance with Disney, you can make the monthly loan payments with a CC?

Not the monthly, that has to be a direct deposit. You can make any additional payment with a credit card.

 

[pangyal]

If you finance with Disney, you can make the monthly loan payments with a CC?

Yep!

 

[pangyal]

Not the monthly, that has to be a direct deposit. You can make any additional payment with a credit card.

We have paid the monthly payments with a credit card every time, including our most recent short-term financing that started about three weeks ago. You just select the credit card option when you set up auto-pay.

You might be thinking of the dues ? If so, you are absolutely correct. For the dues, they have to be bank drafts if paid monthly.

 

[davidhr]

We have paid the monthly payments with a credit card every time, including our most recent short-term financing that started about three weeks ago. You just select the credit card option when you set up auto-pay.

You might be thinking of the dues ? If so, you are absolutely correct. For the dues, they have to be bank drafts if paid monthly.

Weird. I don't have a loan anymore to see if it's something new, but I have a screenshot saved of my latest one and never had the option to select a credit card for auto pay.

 

[pangyal]

Weird. I don't have a loan anymore to see if it's something new, but I have a screenshot saved of my latest one and never had the option to select a credit card for auto pay.

I’m not sure why it’s not an option for you- how odd! We’ve been paying this way for years so it’s not a new feature, either.

 

[davidhr]

I’m not sure why it’s not an option for you- how odd! We’ve been paying this way for years so it’s not a new feature, either.

Not mad because I hate losing the option to earn credit card points and that motivated me to pay it off much much earlier than initially planned lol

 

[byurick]

Was anyone else able to verify if you can pay the monthly loan payment (not dues) with a CC?

 

[DVCanadian]

Was anyone else able to verify if you can pay the monthly loan payment (not dues) with a CC?

International owners can pay via credit card. US owners via US banks.

https://disneyvacationclub.disney.go.com/faq/payments/dues-loans/

 

[jess2022]

So if I find a contract I like that is around $20,000 (just a random number)....I would put down however much they allow on a credit card....probably $5000. Then finance the rest, so $15,000. For 90 days, I'd have to pay the set monthly payment with interest. Then after 90 days, I could essentially just pay off the rest in a couple months if I wanted?

With some title companies, you can do $7500 down with no fees, on a credit card. If you are paying it off within 90 days and know you have the money, why not just find a 6 month no interest credit card offer? You’d pay a 3% transaction fee on the credit card payment for the balance to be title company but it’s quick and easy plus no additional closing costs for financing. I’d atleast run the numbers and see which works out better.

 

[DonMacGregor]

International owners can pay via credit card. US owners via US banks.

https://disneyvacationclub.disney.go.com/faq/payments/dues-loans/

That is exactly what I was told when I inquired about paying my loan via automatic payments. The idea was to earn additional airline miles through spend and just pay off the CC monthly. Without that option, paying interest on a timeshare loan lost any appeal it may have had and we just paid the loan off in cash.