Financing

[Girlstar30]

Thanks! We're doing a big trip in September so we definitely want to get those points after we close resale. Don't mind financing because we can easily pay it back in 6 months. Even if we paid the minimum every month, which were not, it still comes out cheaper to do this than pay Disney direct for rooms. I ran a search for two weeks to stay at riviera in a 2 bedroom and it was over 12 grand

 

[Steelers0854]

Whoa! 15% APR, for prime credit, on a set of points they can freeze immediately and remonetize quickly if they don't get paid, on top of 10% down... why isn't my DIS stock doing better? lol.

Wow, thankfully we were able to get 8.99%, but that was because we were already members.

 

[HyperspaceMountainPilot]

Wow, thankfully we were able to get 8.99%, but that was because we were already members.

8.99% is a much, much better rate.

 

[Kidguile]

The interest is tax deductible as well I believe. You get a 1098

 

[Girlstar30]

8.99% is a much, much better rate.

Hopefully they give me this!

 

[Girlstar30]

The interest is tax deductible as well I believe. You get a 1098

Good to know!

 

[cruisehopeful]

I was about to post a new thread, but most of the information I need is here so I am recycling the thread.

We just financed our purchase we did last month. It was very easy. Because we had been a member already for over a year we got the best rate, but given current mortgage rates they aren’t really that bad. They are a mortgage and thus you can pay down the principal via their website at any time and reduce your interest costs. Those additional payments can be done via credit card. If you setup autopay for the regular payments those have to be a bank ACH.

It looks ridiculously easy to finance if we're already members. Did they run your credit report? My husband and I have security freezes so that's an extra step when we apply for credit. Did you need to get to a notary? Just wondering all the steps.

Wow, thankfully we were able to get 8.99%, but that was because we were already members.

That's actually lower than I expected. If they ran your credit report, did they have to run for all owners? The website almost looks like I can just get the loan by clicking a button and putting 10 or 20% down.

 

[davidhr]

If you have been member for a year they don't run your credit. You're automatically approved for the best rate. They provide a notary free of charge.

It's dangerously easy.

 

[CVG]

My credits not so bad I was just wondering if they wanted near perfect, but sad for that person

You're sad because their credit rating is so bad? Or you're sad they were saved from a terrible choice?

 

[🍀TwinsMom]

We financed all three times on direct so we could pay it off and get CC miles/points. The first time you do it, they don't do a hard pull on credit, IIRC, so no dings to your score or anything, and you get the crappier rate because you're an unknown risk.

Subsequent to that, financing DVC is ridiculous, LOL. You qualify for the lower rates because your other contract was successfully paid off and you're a known quantity, and you're approved immediately with points loaded before the phone call is over.

All the documents are sent via email with an option to do an online notary scheduled at your convenience. If you and your partner/family member are both owners on the deeds, you both need to appear on the notary call. I think you can set up separate notary calls if your schedules don't mesh to do it all at once together, but we did it at the same time.

No prepayment penalty, you can charge off the whole thing in chunks and pay it off however you'd like. We did a couple $10k charges at a clip over a week and kept paying it off as soon as they hit the CC, repeat and rinse. If you can use the Disney CC (we don't have/use that one,) you can extend the payments out six months interest free, I think?

 

[Girlstar30]

You're sad because their credit rating is so bad? Or you're sad they were saved from a terrible choice?

Sad that they were probably excited for it and it didn't happen, but yeah probably for the best

 

[slo]

DVC offers the financing themselves. they dont' report to credit bureaus. The requirement is to have a pulse. And that might be negotiable.t

What does this mean?
If you miss a payment they don’t report it?
I’m just curious

Question…..does anyone know what type of credit check they do - hard or soft? Our credit is very good and I’m always ays nervous of hard checks that make your credit score go down more than a soft check.

 

[bakerworld]

I find this thread a very refreshing read. So welcoming to see a positive thread on financing DVC.

 

[slo]

We financed all three times on direct so we could pay it off and get CC miles/points. The first time you do it, they don't do a hard pull on credit, IIRC, so no dings to your score or anything, and you get the crappier rate because you're an unknown risk.

Subsequent to that, financing DVC is ridiculous, LOL. You qualify for the lower rates because your other contract was successfully paid off and you're a known quantity, and you're approved immediately with points loaded before the phone call is over.

All the documents are sent via email with an option to do an online notary scheduled at your convenience. If you and your partner/family member are both owners on the deeds, you both need to appear on the notary call. I think you can set up separate notary calls if your schedules don't mesh to do it all at once together, but we did it at the same time.

No prepayment penalty, you can charge off the whole thing in chunks and pay it off however you'd like. We did a couple $10k charges at a clip over a week and kept paying it off as soon as they hit the CC, repeat and rinse. If you can use the Disney CC (we don't have/use that one,) you can extend the payments out six months interest free, I think?

I’m just seeing this now.
So if your credit score is over 800, they give you the worst interest rate?

 

[🍀TwinsMom]

I’m just seeing this now.
So if your credit score is over 800, they give you the worst interest rate?

No, I shouldn't have been so flippant; they give you a rate commensurate with your soft pull FICO score, so if it's good, you'll score one of the better rates, but I don't think they automatically give you the BEST rate they offer. We also didn't know the ins and outs when we bought (impulsively) the first time. We knew we were paying it off right away, so the rate wasn't a big deal to us, but it was more of an, "OH, that's kinda high! Glad we're paying it off," kind of thing.

This was also 2019 when rates were much lower for HELOCs and mortgages, too, so anything above 6% was kind of eye raising. Now, DVC financing is pretty close to bank rates, so not as big of a deal. I was actually kind of surprised their rates were basically similar to 2019 financing and they hadn't jumped on the interest-gouging bandwagon.

 

[davidhr]

What does this mean?
If you miss a payment they don’t report it?
I’m just curious

I was referring to the regular reporting. It won’t show up as a loan on your reports.

But DVC financing is low risk for them. If you don’t pay they can freeze your account while they take the contract back. So not much they lose if that happens. I can’t say for sure, but I’ve read they just foreclose the contracts most of the time and that’s all.

 

[Girlstar30]

Resale does not run your credit at all if you don't want them to (Monera, not sure about the others) and with that option they will give you a choice of how long you want the loan for. The shorter and more money you put down, the more favorable rate. For us we did 4 years at 15.9% and we don't care because all contracts are being paid off within 3 months of origination.

Resale will also let you have multiple loans with very little money down (we got two loans with them for two contracts and they told us that if we wanted to finance SSR too that a third loan would be no problem, immediate approval!)

I'm not sure if they were okay with this because they saw we paid one down except for a couple thousand by the time we asked if a third loan was even possible, but nonetheless I thought it was kind of crazy they would let someone have three loans at once with a $1000 deposit down as the only requirement and it was a yes immediately upon asking

I seriously wonder what the cap is of how many they will let People obtain, if any cap at all.

Disney on the other hand is much more strict and the requirements are greater than having a pulse actually. They do a hard credit check and they are looking for at least a 675 credit rating which would disqualify people with bad credit. The down payment of 10% is required. They default to a 10 year loan at a crazy interest rate of 17.99% i believe it was (15.9% is crazy too of course). We didn't let them get as far as running our credit and our credit is greater than min requirement so I can't really comment on whether they uphold the 675 rating, but I'm assuming they do or else why run it at all

I'm sure maybe you can do it shorter for a lower interest rate and less money down but I didn't ask because after going back and forth with Disney about what would entice us to do direct, we decided to do SSR.

Hope this helps someone, I thought it would be the opposite, but a loan for a resale contract is much easier to obtain than with Disney.

And everyone else is right that after a year they will let you buy direct with no credit check and 8.99% is what it is right now.

 

[intamin]

You're sad because their credit rating is so bad? Or you're sad they were saved from a terrible choice?

Yeahhh Disney probably did them a huge favor when they didn't have to. Sad to say though gotta wonder where their priorities are if they got denied financing by Disney.