My Chase Plan - Thoughts?

[kes601]

We are considering purchasing an add-on at BWV or BLT for the use during the week before Christmas (it would be nice to have a walkable resort that we can book at 11 months for that week).

Neither one of us like the idea of taking out a loan to do this, particularly at the ~10% rate through DVC. We also don't really want another loan on our credit report if we went for a loan not through DVC.

That said it leads me to the My Chase Plan through the Disney Visa. If we were able to split the payments over 9 months like it appears we could then it seems to me this would make sense given that it looks like the "fee" per month equates to about 3% of the total due.

Can anybody give feedback on doing this before?

 

[BeachClub2014]

You didn't mention what amount you were looking to put on your Chase Disney Visa, but here's what a sample $10,000 plan looks like.

Payment plan options for a $10,000.00 purchase
See your monthly payment and total cost options based on your current My Chase Plan® offers.

• $1,135.61 /month
  9 payments
  This amount includes a monthly fee of $24.49 with no interest, for a total of $220.41 in fees.
  $10,220.41 total cost
• $861.95 /month
  12 payments
  This amount includes a monthly fee of $28.61 with no interest, for a total of $343.32 in fees.
  $10,343.32 total cost
• $590.49 /month
  18 payments
  This amount includes a monthly fee of $34.93 with no interest, for a total of $628.74 in fees.
  $10,628.74 total cost

 

[Sandisw]

I haven’t done it over 9 months but about 7 months. It was enough to just a Nice way to pay it off.

I am curious about the 3% fee. Not sure what that is. When buying direct, is interest free the entire time…

 

[BeachClub2014]

I haven’t done it over 9 months but about 7 months. It was enough to just a Nice way to pay it off.

I am curious about the 3% fee. Not sure what that is. When buying direct, is interest free the entire time…

Yes, if paid in full within 6-months. I don't think Chase even gives the option of a MyChase Plan when buying direct. It automatically defaults to the 6-months no-interest plan.

 

[BeachClub2014]

Also, DVC allows you to put the whole amount on your visa when buying direct, but I'm not sure that holds true for resale purchases. I suppose the dollar amount is what matters in that instance. That might be a glitch to going the MyChase Plan route.

 

[Sandisw]

Yes, if paid in full within 6-months. I don't think Chase even gives the option of a MyChase Plan when buying direct. It automatically defaults to the 6-months no-interest plan.

I get it now! I took it as just using a Chase card…but now realize there is an actual MyChase Plan! Lol

 

[Marionnette]

Also, DVC allows you to put the whole amount on your visa when buying direct, but I'm not sure that holds true for resale purchases. I suppose the dollar amount is what matters in that instance. That might be a glitch to going the MyChase Plan route.

Most resale companies don't accept credit card payments for the full purchase price of a contract. In all of my purchases, only one permitted buyers to make the deposit with a credit card.

 

[tgarre06]

I haven’t done it over 9 months but about 7 months. It was enough to just a Nice way to pay it off.

I am curious about the 3% fee. Not sure what that is. When buying direct, is interest free the entire time…

I am confused about the fees they’re referencing as well. What is that?

 

[tgarre06]

I am confused about the fees they’re referencing as well. What is that?

Ignore, answered in previous posts didn’t see

 

[BeachClub2014]

Instead of traditional interest on an unpaid balance, Chase allows you to create a fixed-term repayment plan for purchases. They add a monthly service fee to the payment instead of interest.

 

[kes601]

Thanks All. Gives me something to think about. This would be ~$30k purchase (closing costs included). It's certainly better than the interest rate on a DVC loan.

 

[kes601]

One thing I am interested in is the 6 month option via DVC. How does that work interest free?

 

[Marionnette]

One thing I am interested in is the 6 month option via DVC. How does that work interest free?

Your DVC direct purchase would be eligible for 6 months, interest-free, on the Disney Visa. You still have to pay the minimum monthly payment during those 6 months even if you don't make any other purchases with the card during that time. You need to pay it off before the end of 6 months - NOT 6 BILLING CYCLES - in order to avoid any interest fees.

 

[kes601]

Your DVC direct purchase would be eligible for 6 months, interest-free, on the Disney Visa. You still have to pay the minimum monthly payment during those 6 months even if you don't make any other purchases with the card during that time. You need to pay it off before the end of 6 months - NOT 6 BILLING CYCLES - in order to avoid any interest fees.

Thank you. Does DVC arrange that for you w/Chase at the time of purchase?

 

[CSLucas]

Thank you. Does DVC arrange that for you w/Chase at the time of purchase?

It is automatic - you don't need to arrange anything, it just recognizes the charge as being qualified for the 6 months and automatically does it. When you look at your statement you'll see current charges separated out from qualified purchases (the DVC purchase) and it will tell you the minimum you have to pay to avoid interest charges

 

[kes601]

Thanks. On our original purchase I paid it off before the statement closed (so I could easily do multiple charges on the card) so never saw that the first time around.

ETA: Just went back and looked at the actual PDF statements from last year and I see the 0% interest options at the bottom. Thanks for the tip.

 

[WAstateDVCDaddy]

There also several companies specializing in loans for high credit score customers, like BestEgg. They’re usually backed by / divisions of major banks, and provide great rates for short term / mid term loans. 3 year/3-4% rates, and you get a check quickly. Longer term loans are at a higher rate, but much better than the DVC financing.

It would show up on credit report though.

 

[MICKIMINI]

masontitle.com will let you put 5K on a credit card. I always stipulate that in the purchase agreement. The mychaseplan is a great short term option for a large purchase. I've used it a few times and it surprising how cheap it is. If you have several chase cards, double check as some are much lower than others. Depending on what you get for cash back, 1.5% on 5K is $75.00. This is what one of my cards calculates for 5K:

$843.66 /month
6 payments
This amount includes a monthly fee of $10.32 with no interest, for a total of $61.92 in fees.
$5,061.92 total cost

You are ahead by $13.08!

 

[heynowirv]

Yes, if paid in full within 6-months. I don't think Chase even gives the option of a MyChase Plan when buying direct. It automatically defaults to the 6-months no-interest plan.

What about buying resale? Will they still give you 6 months at 0%?

 

[Marionnette]

What about buying resale? Will they still give you 6 months at 0%?

No