how good does your credit have to be to buy into the DVC property with

[free888]

Some people who have brought up the financial concerns have made a good point re the rate. If someone has less than stellar credit, financing through Disney may not be the best decision. Their rates are extremely high, even for those with good credit.

 

[z28wiz]

But the posters questions wasnt about if he/she should do it or not. It just asked if you can obtain financing with poor credit. Yes in a perfect world you should pay cash. Its not a perfect world and not everyone has the funds to do so. So to each their own. If they want to buy in its their decision and no one elses.

 

[JimMIA]

Any time you put yourself "out there" on a public Internet discussion board, you should be prepared for some feedback that you don't agree with or like. Goes with the territory.

And just because someone tells me something I don't want to be reminded of, doesn't mean they are wrong.

 

[Caren90]

Just ignore some of those comments. Some people just have a stick up their you know what. If something doesnt agree with their thinking then they lecture everyone else and never answer the questions. Always happens with the financial posts as the above poster stated. To answer your question you can obtain DVC with poor credit you just may need to provide more docs.

I agree with your post but I also understand why people want to lecture. Disney timeshare is an interesting animal. Generally speaking, the people who can afford paying cash for it, do not have very young children anymore who really are the bread and butter of the Disney product - yet the people within this category (young and with young children) are just beginning families, careers, savings, etc. and usually do not have the means to pay cash for such a product. Again I am making generalizations here, but when I think of timeshare I picture silver foxes (which I am rapidly becoming) strolling down the beach. Yet Disney has created a timeshare product that calls to the young whipper-snappers. I looked into DVC 8 years ago (we went to Disney every year) and I could not afford it. Now I can, but my children are late teens. I bought so that I could have an excuse to go down with my grandkids. That being said, my curmudgeonly advice is to rent points and save your dough if you can't pay cash.
Stephen

 

[babesboo99]

Thank you everybody they are all good points and great advice.

 

[arthur06]

You could also buy a small resale with cash and add on with available cash as necessary/wanted.

We bought our first contract thru resale and paid cash. Our second purchase was cash/finance (still paying). But we put extra down, make our monthly payment, add on additional principal regularly, and use tax return to put larger chunks on it as well.

Am I paying some interest, yes. But I also have a plan and payment schedule that makes our 10 year loan closer/under 2 years.

 

[bumbershoot]

You could also buy a small resale with cash and add on with available cash as necessary/wanted.

Buying resale doesn't give you the same use of your points any longer, however. Now, if you don't want the extras that they just did away with, that's fine. But if you do, or if you really just want to focus on, for specific example, the 226.92 payment each month (which is actually MORE than we were saving for the trips that we were *still taking*, but this gives us SO much more than a hotel room), and you are fully aware of the interest you're going to be paying...well, it's that person's money.

And just because someone tells me something I don't want to be reminded of, doesn't mean they are wrong.

The way people put it is never *reminding* an OP that a different/better decision could be made. Being told that you should get your finances in better order isn't *reminding* people of anything (and it could very possibly be 100% incorrect as well). It's that person's point of view, and should be stated as a point of view not an outright fact. Some do not consider DVC to be a *luxury*. Some just consider it to be *prepaying for your Disney vacations*. Therefore, to be told it's a luxury and you shouldn't finance it just makes no sense because that's an *opinion*.

And since the people are generally asking about financing, if one has no experience in financing, an argument could be made for people with no experience in it *not* replying to the specific question...

 

[kamik86]

Some do not consider DVC to be a *luxury*. Some just consider it to be *prepaying for your Disney vacations*.

Lol Although I agree with everything else you said... Disney vacations in themselves are definitely a luxury. No one really needs to go to Disney.

That being said it is possible for someone to not have great credit and still be perfectly able to afford to purchase. I mentioned my situation above where my husband has awful credit. We will have our 160 points paid off in less then a year. My husband messed up his credit before he turned 20. He stopped messing it up but because he can't get much for credit it is really slow getting fixed. When we bought we didn't have the cash on hand but we had very little expenses since I just got out of college when we were living on very little and had gotten a really good paying job. I paid off my car and all my little debts and bought in. I could have saved the cash for a year and bought that way but then I would have had to take some of that cash to pay for hotel stays (one for 9 people last oct and then for 2 this jan). This way I got those included in my DVC purchase. The interest I pay will be less then what it would have cost to rent points for those two stays.

So maybe the OP is in a position where she has the money but just doesn't have the cash on hand right now. Since you get more for your purchase the earlier you buy (more years of points) it can be better to buy sooner.

 

[babesboo99]

That's exactly right. Years ago my credit got ruined for circumstances i couldn't control untill it was to late. now that my credit is somewhat decent and getting better all the time my family and I thought we would love to do something where we can go on vacation every year and not have to worry about dishing out money. We would have it paid of within a year and a half maybe two it's just that right now with the car my hands on money had to go there. I guess I will let everybody know what happens I love that people take the time to tell everyone what they think and feel.Thanks you I really appreciate it.

 

[Deb & Bill]

This is what I said:

DVC is really a luxury. It works better if you can resolve your credit issues first and then think about spending on DVC.

In the mean time, you might consider purchasing a DVC reservation from a member to try it out until your credit has improved.

What you said:

...The way people put it is never *reminding* an OP that a different/better decision could be made. Being told that you should get your finances in better order isn't *reminding* people of anything (and it could very possibly be 100% incorrect as well). It's that person's point of view, and should be stated as a point of view not an outright fact. ...

Not the same. I never stated that the OP should get her "finances in better order". I just commented that IT works better if you can resolve your credit issues first.

 

[5forDiz]

So maybe the OP is in a position where she has the money but just doesn't have the cash on hand right now. Since you get more for your purchase the earlier you buy (more years of points) it can be better to buy sooner.

Yes you get more years but those added years cost more : more years of MFs to pay & that goes up each year, more return on investments lost that may have been realized utilizing $ that instead went to DVC purchase & more related vacation costs.

Money spent beyond the DVC purchase is quite substantial and a member incurs these costs more often because the mindset becomes ' got the points so may as well use them, don't want to rent them out & don't want to lose them ' so that translates to many trips that may not have been taken under typical vacationing circumstances. Don't get me wrong, our family loves our DVC as most members do but we still spend a great deal of $ vacationing with it.

 

[Deb & Bill]

Yes you get more years but those added years cost more : more years of MFs to pay & that goes up each year, more return on investments lost that may have been realized utilizing $ that instead went to DVC purchase & more related vacation costs.

Money spent beyond the DVC purchase is quite substantial and a member incurs these costs more often because the mindset becomes ' got the points so may as well use them, don't want to rent them out & don't want to lose them ' so that translates to many trips that may not have been taken under typical vacationing circumstances. Don't get me wrong, our family loves our DVC as most members do but we still spend a great deal of $ vacationing with it.

This is why we sold off two contracts worth 175 points. Too much spent on dues. Too much spent on Disney. Disney is an expensive vacation.

 

[Lynne M]

Yes you get more years but those added years cost more : more years of MFs to pay & that goes up each year, more return on investments lost that may have been realized utilizing $ that instead went to DVC purchase & more related vacation costs.

And if you've financed, more years means more interest paid out.

I don't think anyone's said anything insulting to the OP. She asked what happens when you try to buy with a not-great credit rating. She was told that she would likely get approved, but with a higher interest rate. It's doing a kindness to point out that at that higher rate, the purchase may no longer be such a good deal, therefore it might be wise to wait till you don't need to finance, or, as Deb & Bill said, until the issues resulting in the low credit rating have been resolved.

I think, in the rush to buy, a lot of people don't stop to think that those who finance pay significantly more for their membership than those who don't finance. At some point, that takes away from the value in DVC.

 

[Terri2007]

Some do not consider DVC to be a *luxury*. Some just consider it to be *prepaying for your Disney vacations*. Therefore, to be told it's a luxury and you shouldn't finance it just makes no sense because that's an *opinion*.

I pretty much agreed with most of your post, but as another poster commented, Disney is not a necessity. I also believe that people think exactly what you are stating: "I am prepaying my vacations, not buying a luxury." IMO this is exactly why so many have financial trouble/poor credit/bankruptcy. (Yes, there are other reasons why people go bankrupt, medical illness, unforseen job loss, student loans and not getting a job... but these are not the majority.) Too many people think they deserve too much. Too much credit is given to those without common sense or those not taught well by their parents. Way too little credence is given to the philosophy that if you can't pay for it, you shouldn't buy it. I think this is a simpler way to live and brings much more joy than a vacation I couldn't afford. Our society is particularly encumbered by purchasing happiness. Not that I don't love to spend money, I just spend what I can afford. Again, my intention is not to offend, but I think it is sage advice and I wished I learned it earlier in my life.

 

[Deb & Bill]

If it's not a need, it's a want. If it isn't necessary, it's a luxury.

 

[Kidanifan08]

I used the "L" word early on in this thread, and I truly believe that DVC is a luxury. The notion of "pre-paid vaction" also fits into that category. How many people in this country have 30-50 years of "pre-paid vacation"? This term is really a misnomer, since it is not completely pre-paid. If it were, I could just show up without cash or a credit card and be on vacation.

As others have said, I don't think the responses on this thread are meant to be condescending or insulting. I think most of the the comments are in the spirit of sound financial advice. Alot of people visit these thread to learn about DVC, and should be made aware of all of the costs that go into owning DVC.

We bought into this luxury by financing the purchase to the tune of 10.75%. In fact, I made the final payment on our loan about 15 minutes ago! Do I wish I had that interest $$ back -- sure. But, we got 3 trips in 2BR villas over the course of the time we were paying off the loan, and the amount we paid in interest does not come close to what those three trips would have cost in lodging alone. Plus, we still have 46 more years of pre-paid vacation!!!

To the OP, do what you feel comfortable with based on your current financial situation. We had no problem with financing the purchase because we knew we would pay it off in 2 years. As long as you have a plan that you can stick to, you should be fine.

 

[Sandisw]

I used the "L" word early on in this thread, and I truly believe that DVC is a luxury. The notion of "pre-paid vaction" also fits into that category. How many people in this country have 30-50 years of "pre-paid vacation"? This term is really a misnomer, since it is not completely pre-paid. If it were, I could just show up without cash or a credit card and be on vacation.

As others have said, I don't think the responses on this thread are meant to be condescending or insulting. I think most of the the comments are in the spirit of sound financial advice. Alot of people visit these thread to learn about DVC, and should be made aware of all of the costs that go into owning DVC.

We bought into this luxury by financing the purchase to the tune of 10.75%. In fact, I made the final payment on our loan about 15 minutes ago! Do I wish I had that interest $$ back -- sure. But, we got 3 trips in 2BR villas over the course of the time we were paying off the loan, and the amount we paid in interest does not come close to what those three trips would have cost in lodging alone. Plus, we still have 46 more years of pre-paid vacation!!!

To the OP, do what you feel comfortable with based on your current financial situation. We had no problem with financing the purchase because we knew we would pay it off in 2 years. As long as you have a plan that you can stick to, you should be fine.

Your thought process and advice is where my thinking was when we bought. We were going yearly on vacation and paying cash for those vacations. At the end of the day, we decided that if we could own DVC and keep our yearly vacation expenses within the same budget we currently had, then we would buy in to DVC. For us, whether those vacation dollars were spent on cash stays with discounts or on DVC with finance charges, were not important. What was important is that we had built in vacation dollars to use and that was all that mattered. Now, we were able to work things so we did not have to finance so in the end, my yearly costs for vacation are actually lower than they were before DVC.

If someone has assessed their own situatin and decided that they can afford to purchase DVC, regardless of whether we call it a luxary or not, then that is all that is important, IMO. I do think it is great advice to share with prospective buyers to consider all aspects of purchasing via the finance route because it does take longer to see it as a "value" when interest is considered.

 

[friskykitten]

I pretty much agreed with most of your post, but as another poster commented, Disney is not a necessity. I also believe that people think exactly what you are stating: "I am prepaying my vacations, not buying a luxury." IMO this is exactly why so many have financial trouble/poor credit/bankruptcy. (Yes, there are other reasons why people go bankrupt, medical illness, unforseen job loss, student loans and not getting a job... but these are not the majority.)

Actually, according to Yahoo Finance, the top five reasons people file for bankruptcy ARE:
1. Medical Expenses
2. Job Loss
3. Poor/Excess Use of Credit
4. Divorce/Seperation
5. Unexpected Expenses

So your statement about job loss and medical expenses not being the majority of bankruptcies is inaccurate.

I certainly do not disagree with your statement about how there is an entitlement attitude out there that can get some in financial trouble. But it is the not major reason most are in trouble and file for bankruptcy.

As for the OP's question, I would say that credit issues will not prevent one from buying into DVC. But as others have said it will affect interest rates if you decide to finance. I think Disney has themselves fairly well protected if one were to default on a mortgage or go through bankruptcy.

 

[bostontim]

This is a really snooty answer. The person wasn't asking for a lecture on how to live their life. Heck, they may not have even been asking for themself. They were asking for facts. Sheesh.

Amen, so much for friendly advice.

 

[Terri2007]

Actually, according to Yahoo Finance, the top five reasons people file for bankruptcy ARE:
1. Medical Expenses
2. Job Loss
3. Poor/Excess Use of Credit
4. Divorce/Seperation
5. Unexpected Expenses

So your statement about job loss and medical expenses not being the majority of bankruptcies is inaccurate.

I certainly do not disagree with your statement about how there is an entitlement attitude out there that can get some in financial trouble. But it is the not major reason most are in trouble and file for bankruptcy.

As for the OP's question, I would say that credit issues will not prevent one from buying into DVC. But as others have said it will affect interest rates if you decide to finance. I think Disney has themselves fairly well protected if one were to default on a mortgage or go through bankruptcy.

Thanks for the correction. I would hazard a guess that the reasons for bankruptcy filing and the reasons that people have poor credit/financial trouble differ and that you would see a rise in #3 towards the top of the list.