point rental, banking, scenario question

[eileenfk]

Is this scenario doable?

Person X has the following:
- April use year, meaning that the 25% banking deadline is December 31
- An existing December reservation, that uses all 2004 and all 2005 points.

Sometime in mid December Person X sees an ad, indicating that someone has points, that expire December 31st, that they need to rent out.

Could Person X do the following:
- rent the points, that expire December 31, up to an amount of points equal to 25% of the points person X gets each year. Rental would be such that points were transferred into person X’s account.
- apply those points to their existing December reservation
- Bank 25% of their 2004 points

OR
Because the 2004 points are tied up in a reservation, would the person only be able to bank 25% of the points remaining (no longer being used for the reservation), after applying the rented points to the reservation.

I know that the 25% means 25% of the un-used points for that year. (I guess this is wrong, and I didn't know at all)

I don’t know if “used” means completely used up, or if it also includes points currently tied to a reservation that can still be cancelled.

I also do not know, if one can apply different points, to a reservation, then the ones they have already applied.

Thank you
Eileen

 

[Chuck S]

I know that the 25% means 25% of the un-used points for that year.

Actually 25% means 25% of the total points on the contract for the year, not 25% of the unused portion. So a 200 point contract could bank up to 50 points (assuming no other points have been banked for the year) at that window.

As far as using your scenario, wouldn't it be easier to simply rent points from someone during your 2005 use year, since any banked 2004 points would have to be used up during the 2005 use year anyway? Seems like it would accomplish the same goal with less hassle.

 

[SSRex]

For example:

If X has 200 points (April use year),

All 200 points (100%) could be banked by 10/31

100 points (50%) could be banked by 11/30 (assuming no points had been previously banked)

50 points (25%) could be banked by 12/31 (assuming no points had been previously banked)

Someone else, please double check this beacuse I am new to it and am already in a borrowing mode, so banking is a non-issue for me. I would like to know if my thinking is correct for both of us.
Please advise.

 

[bobbiwoz]

April use year has Jan. 31st as the 25% banking deadline.

Bobbi

 

[CarolMN]

If you have an April use year:

*Your 100% banking deadline is the end of September.

* The 50% deadline is the end of December and the

* 25% deadline is the end of January.

There is no banking allowed at all in February or March.


Best wishes -

 

[SSRex]

I thought that seemed too early and that it was only the final 2 months in which no banking was allowed, but I used the date that the OP gave. I have a June Use year myself, so let me see if I have it right for me:

June year Year:

100% Bankiing dealine: 11/30

50% Banking deadline: 1/31

25% Banking deadline: 3/31

No banking allowed in April or May.

 

[CarolMN]

Originally posted by SSRex
I thought that seemed too early and that it was only the final 2 months in which no banking was allowed, but I used the date that the OP gave. I have a June Use year myself, so let me see if I have it right for me:

June year Year:

100% Bankiing dealine: 11/30

50% Banking deadline: 1/31

25% Banking deadline: 3/31

No banking allowed in April or May.

Correct except the 50% deadline is the end of February.

The pattern is end of 6th month (100%), end of 9th month (50%), end of 10th month (25%) and no banking at all in 11th and 12th month. Use Year is month #1.

Best wishes -

 

[SSRex]

I got it now, thanks to you:

USE year is month #1

then 6 months (100%)

then 3 months (50%)

then 1 month (25%)

& nothing the final 2 months

Thanks again,
Rex

 

[eileenfk]

Originally posted by Chuck S
Actually 25% means 25% of the total points on the contract for the year, not 25% of the unused portion. So a 200 point contract could bank up to 50 points (assuming no other points have been banked for the year) at that window.

I like this truth better then what I thought to be true.
I was sure I had read in a post, several months ago, that the percentage applied to only the remaining points. I am wrong sometimes (actually I am wrong quite a lot).

Originally posted by Chuck S
As far as using your scenario, wouldn't it be easier to simply rent points from someone during your 2005 use year, since any banked 2004 points would have to be used up during the 2005 use year anyway? Seems like it would accomplish the same goal with less hassle.

Less hassle is not the goal.
The point is, to rent from someone who would otherwise loose the points. I have seen some rental bargains on points about to expire. None of those posted currently are priced low enough to make it worth the risk and hassle, (to me), but if I were to see some close to point cost ($5-$6) I might consider it worth the hassle.

Eileen

 

[JessetheCowgirl]

Wow! I got lost before I even finished reading the question

 

[DebbieB]

One problem you may run into with an existing reservation is they may not let you move points around if there is a waitlist. There also maybe holding account issues if you are within 30 days. Be careful before you rent. Also, sometimes the rented points can't be transferred into your account, the member has to make the reservation.

 

[RobDoc]

Originally posted by eileenfk
...
Could Person X do the following:
- rent the points, that expire December 31, up to an amount of points equal to 25% of the points person X gets each year. Rental would be such that points were transferred into person X’s account.
- apply those points to their existing December reservation
- Bank 25% of their 2004 points

As DebbieB suggests- be careful with this scenario.

In many cases, you won't be able to simply reallocate the points you have transferred into your account (usually, the reason those points are such a bargain is because they can't be banked or transferred and will expire anyway). If there is any waitlist for the dates of your reservation, you would have to cancel your existing reservation and remake it using the "new" points. By cancelling it within 30 days of arrival, you will incur new issues (holding account) that will preclude your ability to bank the points back into your account.

Before entering into any such transaction, be sure to let MS walk you thru the process to make sure you won't meet any unlnown obstacles.

BTW- the conditions you used in the example can't occur, because no points will expire in December (there is no January Use Year).

Enjoy!

 

[Dean]

Doc's caution is a good one. But it is possible to rent expiring points from another member and cancel what you have and likely be able to book those points giving them life for the next use year. It is something you have to be careful with but one could make out if they did their homework and got the rented points cheaply enough. The best way would be to rent a reservation from someone else, cancel those days then book those points. Transferrable points would not be cheap enough to make it worthwhile. And it's not really any different than one who has multiple resorts and books the more desireable one at 11 months out and then at 7 months books the same unit type with non home resort points freeing up the higher demand resort and using those points againt. Of course this will only work when the units are available at 7 months out.