I have a ? about Disney financing approvals (people w/ bad credit please respond

[Disney1fan2002]

I have seen a few posts mentioning that Disney really does not decline people for DVC financing. Is this true? If so, why do you think? Is it because DVC is worth so much in that Disney can always sell it? Meaning, if they have to foreclose on a contract, they are not stuck with it in hand?

I just don't get how a person with a low credit score would get approval, this makes me think of those slimy car dealerships who don't care that you may not have money to pay for the car, they can get you in a car at 30% interest. I would think Disney was HIGH above that.

ANy input anyone has on being declined or approved with a low credit score will help me. Because I think I am going to have my sister take the tour. She has always assumed that she would not be able to buy because her credit is so messed up from the past years, she has not been able to buy much of anything. Thank GOD they had already purchased their house before they hit bad times. But they do make the money now, it is just their credit report keeping them from things. They have never filed bankruptcy, so that helps, right?

Please, I feel the question I am asking is quite personal, so if you are offended by it, by all means, do not answer. Thank you.

 

[Geoff_M]

I'd find it hard to swallow a blanket statement like Disney "doesn't decline people". But, I can see where they might have a lower credit threshold than other major purchases like a car. For one thing, you don't get the asset. The resort stays put and under their control at all times. There's no danger that if they have to foreclose on someone that the asset will be damaged or diminished in value. They can turn around and re-sell your points. All it costs them is the legal fees.

 

[SheriB]

I think that the reason they would approve someone with less than perfect credit is because they could always foreclose on it and resell it with no problems. And there are people out there who have gone through rough times (job lay-offs, medical leave, etc.) who may have been behind for a period of time, but are now in a position to make ammends and can afford the payments. I think maybe Disney may give people the benefit of the doubt and perhaps do not pass as harsh a judgement as other lenders may. I work for a credit union, and our loan department does everything within their power to help a member get a loan. However, they do turn people down if there is no collateral or their credit is really bad(some people just don't care whether or not they pay their debts). Of course, since I don't work for Disney, I couldn't say for sure why they do allow purchases under those conditions. Good luck to you and your sister, whatever you decide.

Sheri

 

[Jamieb]

One thing to consider is, even if you have poor credit and they approve you, they control the asset itself. They will not allow you to make a reservation on points if your maintenance fees are behind so they may also put a hold on your account if you are past due in mortgage payments since they hold the note on the mortgage.

They have not had a problem reselling points at any resorts, especially since most are sold out and even at those there is usually always a wait list for add-ons by curent members.

 

[Gail & Joe]

When you take the tour ask the guide about the financing and they will tell you what things they would refuse financing for. They are very helpful. I did everything on the phone with my guide. I never took the tour so I had a lot of questions when I called. I had seen the video and asked for more information. After they sent me the information I called and talked to a guide and he answered all my questions over the phone. I'm sure that all of your questions will be answered when you take the tour.
Good luck!

 

[mrford]

I was a buyer with a low credit score. My husband and I filed bankruptcy approximately 6 years ago, when he was hurt and I was laid off in the same year. In retrospect, I don't feel that we would do that again under the same circumstances. We have been rebuilding our credit since then and Disney did not turn us down. They just asked for a larger down payment 30% instead of the standard 10%. Part of the 30% could be our Magical Beginning credit. They didn't even increase the interest rate. We just bought less points than we first intended since our down payment needed to be higher. I think the larger down payment requirement would scare all but the serious buyers away because of the initial investment involved.

 

[msdis]

It's mostly due to the collateral that they allow the sales of people with credit flaws. This type of asset is one of the most liquid for the leinholder who also is the developer. There is a lot less risk to full value than a car, home, or other luxury types when/if the time comes for foreclosure.The increase of down payment also helps weed out the ones who are not serious as they have a greater loss if they default. I have heard others report that the financing with Disney does not show up either way on a credit report so this would be a moot point for future reference.