just wondering...has anyone been denied an add on due to credit issues?

[Disneyfun1]

didnt mean to cause a stir, just wanted a question answered. Im removing my original info on this. thank you.

 

[khomer504]

I'm pretty sure they don't check your credit for add on's, only for your initial purchase. In fact when we did our initial purchase we only qualified for standard financing but with an add on we automatically qualified for preferred financing regardless of credit (and no credit check that I'm aware of).

 

[disneynutz]

When the credit market collapsed, Disney lost it's ability to sell our loans to the outside market.

Disney now holds all of the loans and started doing credit checks. The credit check determines what interest rate the borrower pays. If a borrower defaults on the loan, Disney forecloses on the contract and puts the points back up for sale.

Bill

 

[Deb & Bill]

DVC has a way of ruining your credit just by taking to many trips. We were close to maxing out our Disney VISA until we decided that Disney wasn't the sole purpose in living.

Once is year is plenty for this family. Maybe even fewer.

 

[mom3sonstt]

Maybe I shouldn't post this and open myself up to criticism, but here goes. We purchased DVC about 12 years ago and did an add-on shortly after. About 5 years ago we filed bankruptcy due to various reasons. We were able to keep our DVC. Since then things have turned around for us and we purchased more points a year or so ago, not sure whether or not the financing would go through - it did. This year we went to WDW and went over to meet our guide (everything else had been over the phone so we'd never met our guide face-to-face). We wound up buying even more points - while we were filling out the paperwork I asked him how to fill something out (hubby has since retired and now works as a consultant so our monthly income varies) - he said not to worry about it - since we were an add-on the financial information was just a formality. Our grand total of points is 410. So we pretty much go once a year. This year we had one family trip and are taking 2 more short parent only trips in studios.

 

[Brandis]

This is something I also wondered. I just bought into the DVC on a cruise last month. Since I live in Switzerland and DVC has no license here to sell timeshares, everything had to be finalized while on the cruise.

My first question to my guide was: "I live in Switzerland, I guess this will complicate financing." He said that it is actually much easier since my financing would need no checking and would be automatically approved. The APR is higher though, 11.75% instead of 10.75%.

As soon as I was back home, I applied for a loan here with much lower APR and now have already paid Disney back in full. This loan will be paid back in 3 years as opposed to 10 with Disney.

Marc

 

[jlewisinsyr]

I would caution anyone who has a low credit score from buying, not because you may not be able to afford it but the loan will offer little to no benefit in terms of helping increase your score. Debts on your score decrease your credit, no doubt, but on time payments will help boost it. Debts like mortgages are more beneficial then debts that are of a revolving payment type (credit cards). Because Disney doesn't report your loan on your credit report it doesn't negatively impact it (outside of a possible credit check), but it also offers no benefit to helping rebuild it with on time payments.

In my opinion, I'd be more focused on locating ways to boost a low credit score, through either strategic pay down of debts (if there are any) and strategic financing to help establish a good repayment history versus buying an interest (or additional interest) in a timeshare. But to each there own, and everyone needs to take responsibility and knows their own actions best.

 

[mom3sonstt]

In addition to keeping our DVC we kept our house, switched our mortgage to an automatic payment instead of mailing it in and increased the amount of the payment (voluntarily), we still had two vehicles with payments - which we were also able to keep. We did later trade one in and when we did financing on that the dealership got us a high-risk loan agency at first, kept checking around and called us back a couple days later and had us a loan with Ford Credit at a better rate, which he also said would look better as a creditor on our credit history. All credit cards are now gone. Our only monthly bills (in addition to ones above) are phone, utilities, car ins and my medical bills. Fortunately we have good insurance so a lot of my medical is covered. Disney is our remaining vice.

 

[pyrxtc]

I understand the want to own more points but if your credit is bad then there is a reason. Maybe CC's or something similiar. Maybe the money you spend shopuld be used on the "other issues" before buying more DVC.

 

[Dean]

Maybe I shouldn't post this and open myself up to criticism, but here goes. We purchased DVC about 12 years ago and did an add-on shortly after. About 5 years ago we filed bankruptcy due to various reasons. We were able to keep our DVC. Since then things have turned around for us and we purchased more points a year or so ago, not sure whether or not the financing would go through - it did. This year we went to WDW and went over to meet our guide (everything else had been over the phone so we'd never met our guide face-to-face). We wound up buying even more points - while we were filling out the paperwork I asked him how to fill something out (hubby has since retired and now works as a consultant so our monthly income varies) - he said not to worry about it - since we were an add-on the financial information was just a formality. Our grand total of points is 410. So we pretty much go once a year. This year we had one family trip and are taking 2 more short parent only trips in studios.

I'm glad you are doing much better currently than a few years ago, enjoy your new points.

I understand the want to own more points but if your credit is bad then there is a reason. Maybe CC's or something similiar. Maybe the money you spend shopuld be used on the "other issues" before buying more DVC.

The thought did occur to me as well but I don't know the situation for the OP to make any additional comments. I do hope they are making the best decision for them and are in a better position now than before. I wish them well no matter what happens.

 

[quentina]

No credit check with add on...I did one in July and my guide said, terms will be the same (we had the preferred rate). I asked if they would do a credit check, he said only for first buy.

 

[brandip22]

I was wondering this as well. We'll be paying off in June and want to add on. But, we had a job loss and medical issues, so we are repairing credit. Good to know in case we decide to go that route.

 

[jdg345]

DVC has a way of ruining your credit just by taking to many trips. We were close to maxing out our Disney VISA until we decided that Disney wasn't the sole purpose in living.

Once is year is plenty for this family. Maybe even fewer.

What is this heresy you speak?

 

[mb168]

Definitely no credit check on an add on, just bought at BLT in July and our guide mentioned this. Regardless of how it will or won't hurt your credit score, it is a bad deal to finance it. A 10+% rate is not good by any standards unless you are a lender and anyone that thinks so has no concept of money and may need to go back to school and take some basic math classes and someone with bad credit wanting to pay that rate to "buy" good credit is making an even larger mistake. I hope the OP is making a wise choice with this purchase.

 

[bumbershoot]

A 10+% rate is not good by any standards unless you are a lender and anyone that thinks so has no concept of money and may need to go back to school and take some basic math classes and someone with bad credit wanting to pay that rate to "buy" good credit is making an even larger mistake.

Is anyone even saying that the OP is buying to better their credit???? I noticed someone else mentioned this, when I hadn't seen it anywhere else.

As for interest rate...if a person is vacationing anyway and isn't willing to stop vacationing for x number of years to save up all that money spent, and especially if a person's *past* has caused them to be in a position where 10% is a great rate...then it IS a good deal for that person.

And yes, this was our position. We have a car loan at intensely horrid interest, but it's ALL hubby could get when our only car died dramatically and felt too unsafe to fix. The interest on it makes DVC look like a bargain. So it's all relative.

And since we (legally, my husband, actually) bought in, we've paid almost 4K extra towards the car, will be out of that loan 2+ years shorter than Chase wants us to be in it, then we'll slam down DVC.

And be able to take vacations all the while and for quite a few years more.


It's all relative. Our deal might not be as good as the deal for those who bought with cash, and our deal will be better than those who spend the whole 10 years...but when I figured it all out for us, even paying it off over that time was better than paying cash for rooms for all those years.


mom3sonstt, that was very brave of you. And it's great that you don't have CCs anymore!

 

[thelionqueen]

I understand the want to own more points but if your credit is bad then there is a reason. Maybe CC's or something similiar. Maybe the money you spend shopuld be used on the "other issues" before buying more DVC.

I find it incredible you would post this about someone you don't know and a financial situation you know nothing about. My sister filed bankruptcy after a horrible and abusive marriage. Shortly after, she received an unexpected inheritance and purchased a new home. This is just one example of a situtation where someone could see her as a low life with bad credit taking advantage of bankruptcy laws. Rather than a recovering abuse victim trying to reclaim her life. I would never assume to give advice to someone about a situation I know nothing about.

 

[pyrxtc]

I find it incredible you would post this about someone you don't know and a financial situation you know nothing about. My sister filed bankruptcy after a horrible and abusive marriage. Shortly after, she received an unexpected inheritance and purchased a new home. This is just one example of a situtation where someone could see her as a low life with bad credit taking advantage of bankruptcy laws. Rather than a recovering abuse victim trying to reclaim her life. I would never assume to give advice to someone about a situation I know nothing about.

What I said - I understand the want to own more points but if your credit is bad then there is a reason. Maybe CC's or something similiar. Maybe the money you spend should be used on the "other issues" before buying more DVC.

I didn't post anything detrimental or even pretend to know what the "other issues" are. I said they maybe they should look twice and think three times before they buy more points if they ahve "other issues" going on. I didn't say anyone was a low life or that maybe it is not for them. I said to make sure they knew what they were doing.

If the other issues were job loss recently, then maybe they shoudl wait until they know the new job is stable. If it is medical then make sure that all of that is in order. Never did I say "Don't do it."

I don't understand how what I originally said gets you so mad. I didn't presume anything in it. there were no details so I couldn't really give advice on wether more points was right for them or not. I just know that you always need to look twice and check three times. it took us 2 years to decide to buy in our first round of points and had no "other issues" to consider.

 

[Mike2023]

What I said - I understand the want to own more points but if your credit is bad then there is a reason. Maybe CC's or something similiar. Maybe the money you spend should be used on the "other issues" before buying more DVC.

I didn't post anything detrimental or even pretend to know what the "other issues" are. I said they maybe they should look twice and think three times before they buy more points if they ahve "other issues" going on. I didn't say anyone was a low life or that maybe it is not for them. I said to make sure they knew what they were doing.

If the other issues were job loss recently, then maybe they shoudl wait until they know the new job is stable. If it is medical then make sure that all of that is in order. Never did I say "Don't do it."

I don't understand how what I originally said gets you so mad. I didn't presume anything in it. there were no details so I couldn't really give advice on wether more points was right for them or not. I just know that you always need to look twice and check three times. it took us 2 years to decide to buy in our first round of points and had no "other issues" to consider.

Everything you said was out of line in my opinion. None of your points has anything to do with what the op asked.

 

[ppony]

Everything you said was out of line in my opinion. None of your points has anything to do with what the op asked.

I agree. Everyone seems to think they know why these things happen, but what they don't know is 60% of all bankruptcies (not saying this is what the PP had just an example to why credit scores are low) are due to massive medical bills. Stick to the question posed, don't suppose to know anyone's situation and give your "advice" based on knowing nothing about a person's situation. It takes a long LONG time to recover a credit rating. I'm sure the OP doesn't need anyone to tell them to think about what they are doing. I understand pyrxtc might have felt they were trying to help, but it really isn't anyone's place but perhaps one's mom or dad

 

[mb168]

They weren't bankrupt, just bad credit that has gotten worse since 3 years ago when they initially purchased with already bad credit. With 30+ long Disney trips that have increased per year and a handful of cruises in the signature, it is most likely not medical related.

Whether or not it's the purpose of a public forum to veer off topic is another point.

Credit is not checked for an add on. I hope this dies soon, it can only go down hill from here.