How does DVC show up on your credit?

[Carrieberry]

Hi all! We are looking to help improve our credit after a BK 2 years ago. We would love to buy into DVC and we are in the process of selling our house(which was inherited so we have no mortgage payment history) for quite a substantial profit. We will have money to put down and we were thinking that DVC might be a good way to have a real estate payment history on our credit to help us raise our scores before we get a new house (we are moving to an entirely new state and are not familiar with the areas, so we will be renting for about 6 months until we get settled there). By the time we get our next mortgage we would like to have better credit so we can get a better rate. How does DVC show up on your credit? We will be putting down 30% on our new home, and have a very low debt to income ratio so the cost of the monthly payments and dues would not affect us getting a mortgage in the future-we are just wondering if the on time payment history of it will help us rebuild. Also, what are the requirements for joining DVc if our credit is not so good? Do they turn people away, or just ask for more money down? Thanks!

 

[gppnj]

Unfortunately DVC cannot help you repair your credit. As long as you pay on time, no information will show up on your credit report. This is bad in your case, but it is good for most people because when they try to borrow money from somewhere else, the money they owe to DVC won't show up as debt.

 

[Carrieberry]

Thank you! That is bad in my case right now- but it is great for the future! Do they turn people down for DVC or just ask for more money down?

 

[Cruelladeville]

DVC probably will approve you for credit anyway, even with a bankrupsy, although you will have to put a substantial amount down. Most of us put 10% down, but they could ask for as much as 50% so if you don't make your payments, Disney comes out ahead. They may also require you to have automatic withdrawls from your account, so you have no choice but to pay on time. As noted, though, DVC does not show up on your credit report unless you habitually are late on payments.

 

[Carrieberry]

Thanks! I have no issues with auto debit payments but 50% down might be a bit high for us. I would not mind putting 30% down, but 50% would be a different story. I guess we will have to go and meet with them when we are there next month! Thanks again!

 

[Cruelladeville]

50% is the maximum. Most people with less than good credit are approved with 30%. I think once someone on this board said they were approved at 40%, but I have never heard of anything higher.

 

[JimC]

Unfortunately DVC cannot help you repair your credit. As long as you pay on time, no information will show up on your credit report. This is bad in your case, but it is good for most people because when they try to borrow money from somewhere else, the money they owe to DVC won't show up as debt.

Most credit applications ask you to list your debts. Failure to disclose would be a serious error. It is irrelevant that DVC does not report to credit agencies.

 

[marianneb]

Just go for it. If they ask for more than you can afford, just say no. A friend just financed for five years with a bankrupsy for 20% down. Good luck. The financing isn't hard with less than perfect credit.

 

[missincredible]

With a bankruptcy Disney will require 50% down. Their interest rate isn't great either. They will also require a shorter loan period, which means a higher monthly payment. Best way to build credit is start with a credit card, not a DVC. Buy a house first and get a home equity loan to pay your DVC. The interest rate is cheaper and tax deductible.

 

[CapeCodMatt]

You are telling me that I financed $25k with DVC and this isn't even going to show up on my credit report (as long as I am current) as a debt/credit line/mortgage/ or consumer loan? How is that possible?

 

[jlewisinsyr]

You are telling me that I financed $25k with DVC and this isn't even going to show up on my credit report (as long as I am current) as a debt/credit line/mortgage/ or consumer loan? How is that possible?

It costs companies money to report credit information to the reporting agencies, some will report to all, some will report to none. Disney has found that they don't need/want to incur the additional costs of reporting the debts. There is zero legal requirement for them to do so.

 

[CapeCodMatt]

Music to my mouse ears.

 

[firstcruise]

It costs companies money to report credit information to the reporting agencies, some will report to all, some will report to none. Disney has found that they don't need/want to incur the additional costs of reporting the debts. There is zero legal requirement for them to do so.

This is not true. It cost nothing for creditors to report credit data to any of the three major credit bureaus. What they must do is follow FCRA if they do decide to report, including handling all disputes and reporting all tradelines accurately. This can be, and usually is, time consuming and expensive depending on the number of customers you have.

All CB get their money from selling the "info" to other customers and their add-on services, like FICO, fraud shield, etc.