How to pay for this...

[MineeBaby]

So, my husband and I bought DVC a few years ago direct through DVC. We are now looking at buying through the timeshare store and everything is falling into place except....da dam...how to pay for it. We were planning on throwing it on low to no interest credit card and we have found that now we can't use a credit card. Hmmmm....can someone please advise as to how we can do this while also avoiding paying in full (we can, but would rather not) or financing at the very high rates offered.

Thanks!!

 

[Claire L]

Can you make a cash balance transfer from the credit card to your normal bank account?

Claire

 

[TisBit]

So, my husband and I bought DVC a few years ago direct through DVC. We are now looking at buying through the timeshare store and everything is falling into place except....da dam...how to pay for it. We were planning on throwing it on low to no interest credit card and we have found that now we can't use a credit card. Hmmmm....can someone please advise as to how we can do this while also avoiding paying in full (we can, but would rather not) or financing at the very high rates offered.

Thanks!!

You could buy direct through Disney and the rates aren't as high as the resale market. It was 10% last that I heard. You also have the option of a home equity loan, which several people have reported using.

 

[AlexTina]

Just get the cc company to transfer the funds to your bank account. Most card companies will transfer money directly to your bank account with no fees and will offer the same low interest rate offers that they offer for using the card directly.

Tina

 

[MineeBaby]

Thank you for all the great responses! So, is the cash transfer what the credit card company calls a cash advance? We never do this type of transaction, so I am pretty unfamiliar.

 

[snowbunny]

Thank you for all the great responses! So, is the cash transfer what the credit card company calls a cash advance? We never do this type of transaction, so I am pretty unfamiliar.

Make sure you get familiar before you do it. The interest rates for cash advances are normally quite a bit higher than those on your card balance.

 

[lisah0711]

Ask if there is a transaction charge or "convenience fee" for a cash advance or transfer. Sometimes there is a hefty charge even if you pay off in full before the due date. That could be a nasty surprise!

 

[corky441]

Also, if you buy direct through Disney you can use your credit card up to whatever your limit is. If you have a Disney Visa card you can then get rewards points and if you buy 160 points you can get a $500 reward card. Of course you have to spend the $500 @ Disney, but that's not hard to do...

 

[MineeBaby]

Yes, I agree with the high fees, which is what we are very much going to avoid (re, not buy if we can't avoid them). If transfering from the credit card to our bank account is the same as a "cash advance" then the fees are WAY WAY too crazy. I am looking at calling my guide to see if they have anything that matches what we are looking for--it just has the potential to cost more if we go through Disney. But, I don't want to give up on this resale quite yet...there has to be something we can do without having to pay them in full.

 

[AlexTina]

Most of the time the "cash advance" fees are super high as is the interest rate on a "cash advance", however, if you currently have a balance transfer offer on your cc if you call they will normally do a transfer to your bank account for the same rate as the transfer offer. They can do this by simply calling it a "transfer" instead of a "cash advance". They are transferring money from one account to the other so they treat it differently than they do those cash advance checks or making a withdrawl from and ATM with your cc. There's only one way to find out.

 

[Corinne]

Ask if there is a transaction charge or "convenience fee" for a cash advance or transfer. Sometimes there is a hefty charge even if you pay off in full before the due date. That could be a nasty surprise!

I agree! I am sorry, but using a CC to pay for DVC does not seem like the brightest idea.

 

[MineeBaby]

Paying with a credit card is actually quite bright if you can do it properly. When we bought directly from DVC, we were able to use a credit card. We put it on our card, got miles enough to earn us a plane ticket, and then before the grace period (20 days or so), we transfered the balance to a zero percent for a year, no balance transfer fee credit card. Essentially, it was a free loan, allowing us to continue to earn interest on our own money while taking this 1 year free loan. It is also an okay thing to do if you can get an interest rate that is less than your savings account rate as opposed to paying it cash in full. If the credit card rate is 3% and your savings account is 5%, you are still able to get 2% interest on the money that you would have otherwise paid in cash.

You just have to be smart about how you use your credit cards. Don't ever carry a balance unless you are happy to follow the difference in percentage rates I noted above, and ensure you always have the back up cash in liquid assets to insure you are able to pay it off if anything ever happens that would put you in a financially unstable situation. Just don't ever "borrow" more than you actually have available in liquid assets.

 

[crisi]

Do you own a home? A home equity line of credit is SOMETIMES a good low interest (and often tax deductible) way to bridge cash flow. Sounds like you have the money, just dont want to free it up RIGHT NOW.

 

[snowbunny]

I don't want to give up on this resale quite yet...there has to be something we can do without having to pay them in full.

There really isn't. You have to produce a bank draft/cashier's check etc. to close with the TSS. And no they won't take electronic cash via paypal (I thought of that one with my small contract, as I use a cc with paypal. Answer: no.)
If you want to put it on a credit card, buy direct from Disney and that way you will avoid the closing costs as well.

 

[BWV Dreamin]

If you purchase thru GMAC (I am not endorsing this company), you can charge up to $4000 of your purchase on a credit card.

 

[Lisa P.]

Paying with a credit card... ensure you always have the back up cash in liquid assets to insure you are able to pay it off if anything ever happens that would put you in a financially unstable situation.

This part is VERY significant. The vast majority of people who take out a loan or use a credit card are adding a debt load with interest that can double their final costs. That's a pretty poor idea for a luxury purchase, like a DVC timeshare.

Non-essential purchases are best made when a person can actually afford them, without putting their overall financial state into deeper debt or their ability to pay regular expenses at risk. Unfortunately, most people seem to be unable to wait until they are able to afford luxuries, wanting them immediately and putting themselves at risk of losing their home to unexpected medical expenses, a layoff or other financial upheaval - like the hit we've all taken to our budgets with higher gas and heating fuel prices this year.

In your situation, sorry that I can't help with the shuffling of assets that you're considering.

 

[MineeBaby]

Thank you all so much for your help and advice. We ended up purchasing directly through Disney and it actually turned out to be much cheaper ANYWAY. We really didn't think there was a way to bring the cost of points all the way down to match resale, but with the incentives they were offering and closing costs being waived (or rolled into the price per point really) it turned out to be a great deal and we went for it--with a credit card.

Thank you all again!

 

[bookswin]

Almost always, the best deal is to get a "Home Equity Line of Credit" (HELOC) from your bank, assuming you have equity in your house. Up to a loan balance of $100,000 the interest should be 100% deductible from your taxable income if you itemize on Schedule A (check with your accountant).

Our HELOC is 1% below prime, or 4% a year, deductible. A bargain.

Take out a HELOC and use the money to pay off your CC for the purchase (which is how we did it).

Disney should have allowed you to pay over three months on your credit card, no interest. And if you use a Disney Visa, the down payment (up to 10% of the total) should be "6 months same as cash."