Question about credit and down payment

[ingrid3]

Hi,
Our family is planning on joining the DVC in a few months. Our credit is not up to par. What is a good guess of how much money we will need up front? We plan on getting 200 points. Can you have a co-signer? What are the needed requirments to be able to become a club member? I hope you can answer these questions. Thank you for your time.

Have a Mickey day!
Ingrid

 

[RobDoc]

Welcome to the DIS, Ingrid.

Typically, if DVC feels that someone's credit rating is not what they are looking for they will just require a higher downpayment - 20% - but will still offer their financing. There have been many reports stating that DVC does not show up on credit reports, so owning DVC isn't likely to cause other credit issues.

Since DVC handles it's own financing and controls the use of the membership, they do have easy control over a membership if there is any problem with payments being received so they are able to offer financing where other lenders might not be as eager.

I'd suggest making sure your personal finances are stable before taking on more debt - especially for a luxury item like DVC, but if your credit problems are from past episodes and you have everything currently under control it may be worthwhile taking a look at DVC.

Feel free to ask any other questions you may have.

 

[CarolAnnC]

A "co-signer" is probably not a good idea if at all possible. That person would then be joint owner in your DVC property. That makes your DVC subject to their possible issues such as bankruptcy, divorce, joint property etc.

As Doc said, check out with Disney what they would require of you. Sometimes just additional deposit is enough to satisfy their requirements since they still hold control of the DVC ultimately.

And Welcome to the DIS!!

 

[Deb & Bill]

Remember, too, that along with those 200 points you will have about $900-$1000 a year in member fees. Plus you will still have to get to WDW and still need tickets and food. You can always rent a reservation from a member until your finances get more stable.

 

[DiznEeyore]

Remember, too, that along with those 200 points you will have about $900-$1000 a year in member fees. Plus you will still have to get to WDW and still need tickets and food. You can always rent a reservation from a member until your finances get more stable.

Just to point out; OP didn't say their finances were unstable or ask for opinions on whether they should buy, just that their credit wasn't "up to par". That could be from something that happened years ago ... we all know how long it takes things to drop off credit reports. It doesn't necessarily mean they can't afford DVC *now*.

I don't mean to jump on you at all, Deb & Bill ... it just seems to me that too many negative assumptions re: personal finances tend to get made around here when someone posts a question about financing.

 

[Deb & Bill]

Just to point out; OP didn't say their finances were unstable or ask for opinions on whether they should buy, just that their credit wasn't "up to par". That could be from something that happened years ago ... we all know how long it takes things to drop off credit reports. It doesn't necessarily mean they can't afford DVC *now*.

I don't mean to jump on you at all, Deb & Bill ... it just seems to me that too many negative assumptions re: personal finances tend to get made around here when someone posts a question about financing.

My mistake. I guess I figured that if they needed to finance the purchase, they didn't have the cash available to buy now. And with poor credit they were concerned.

If they are flush with cash, they could pay for it outright and not need to finance. Thus, no questions about credit scores.

They did ask how much they would need up front. I just provided some additional costs that they needed to consider.

 

[ingrid3]

Thank you to all for the information. My mother and I would like to go on half with it. We have a very good relationship and she wants to get this for her grandkids So I just wanted to get a round amount of what was needed up front. I got a good idea and thanks again. I hope to be chatting with ya'll soon as a DVC member



Have a Mickey day!
Ingrid

 

[utahkennedys]

I'd suggest making sure your personal finances are stable before taking on more debt - especially for a luxury item like DVC, but if your credit problems are from past episodes and you have everything currently under control it may be worthwhile taking a look at DVC.

I would totally agree with this. DVC is a luxury purchase that should only be financed or paid for with "extra" money IMHO. We purchased a small resale in cash and then plan to add on if/when the need arises.

 

[MBELSANTI]

I was at Doorway to Dreams last week and planned on adding points. I told them that I was thinking about financing and they took my credit card # and SS# for a deposit so that I wouldn't lose the incentive offer as I had not closed on my resale yet. Anyway, they did inquire into my credit( I checked it online) and that check dinged me 30 points! Luckily I had 841 credit score at the time, but that really ticked me off as I had not signed anything yet! So if you go for financing through Disney, they will check your credit and lower your score.