How Important Is Credit Score/rating

[LImom222]

I read on another post that when buying resale you must have excellent credit, what are the requirements when purchasing through disney, how important is credit score if when it comes to financing, I make a decent salary but my credit rating is fair, what things are considered when purchasing from disney, income, credit score, etc?

 

[Pennyguy23]

It really makes NO differece to disney. I have NEVER heard of someone being turned down. Some of the old time diser might know of it happening but I havent yet.

 

[jenfur]

Bump- cuz I'd like to know too....for no particular reason

 

[Eeyore's Pal]

We bought in 2000. At that time our credit was all messed up (and we didn't even know it). Our guide told us Disney would offer financing to just about anyone. The rates may not be great, but there will be an offer. It worked out for us. I would hope that is still true.

In the end, if you don't pay, they would foreclose on your DVC deed, so they really have nothing to lose.

 

[Caskbill]

In the past Disney has required a larger down payment from some purchasers who's credit wasn't as good. I think it goes from 10% down to 20% down.

The risk to Disney is very small and that's why they can approve almost everybody for a loan.

If someone is deliquent in paying their dues or their loan, they simply cannot make any reservations. Disney isn't out anything, and they've already got the downpayment (10% or 20%) that was made.

It's not like a house or a car, where the buyer actually takes physical possesion of the item purchased and the financing bank would have to go through hoops to get the property back if someone didn't make their payments.

 

[Tinkerdreams]

I read on another post that when buying resale you must have excellent credit, what are the requirements when purchasing through disney, how important is credit score if when it comes to financing, I make a decent salary but my credit rating is fair, what things are considered when purchasing from disney, income, credit score, etc?

Your credit score will determine what interest rate you get to finance at. You will either get a Preferred interest rate (10.75) or you will get a Standard interest rate (14.95).

 

[Slakk]

It really makes NO differece to disney. I have NEVER heard of someone being turned down. Some of the old time diser might know of it happening but I havent yet.

There was one guy who came on and said he was turned down. He was (I think) 18 years old with absolutely no credit history. They told him he needed to establish credit first.

 

[ScottNBecky]

We dont have the best credit and that was our fear as well. I dont think Disney is as concerned about it as they say, because if you dont make payments you lose your DVC interest, so they really arent out. Just my take.

 

[disneynutt1225]

We had fair credit when we financed in 04 and we only had to put 10% down and our rate is 10.75%. Not too bad.

 

[CarolA]

There was one guy who came on and said he was turned down. He was (I think) 18 years old with absolutely no credit history. They told him he needed to establish credit first.

I remember that guy...

Anyway, the reason you need a great credit score for resale financing is that it's really a "personal" loan. Unlike Disney the loan is not secured by the timeshare deed (which also means it is probably not tax deductible)

Disney has the ability to take back the deed if you don't pay so they are more generous in giving credit.

 

[Coach Rick]

Through a couple of moves, and a story that is too long for this post, we went through a dark period in our financial time in the early 90's. While Disney did not deny us at that time, they asked for 30% down, which at the time was not something we could do, so we waited a couple of years, and got it with the 10% down, and 9.75% interest rate (at that time it was that low). I also know somebody who had filed bankruptcy about 3 years prior to applying and they got approved. And once you get one contract, I swear they don't even look at your credit for add-ons. One other advantage, it does not show up on your credit report at all, although if it's on time all the time it would actually help your score.