Question about Financing through Disney. . .

[MyGoofy26]

I'm getting ready to finish my 2nd degree in a couple months, on the hunt for a good job. I'll be walking away with just my student loans - got everything else paid off. Don't have any plans to buy a house or a new car for awhile, and DVC is something I've always wanted to buy into. So I've started 'researching' DVC and hoping to buy a small contract (probably start with the 150 pointer) within the next year or so provided I get a decent paying job.

Thing is I'm at a point where my credit is "in between" right now where I can get credit from a good many places, but not the pickiest of them - I have a thin file and have recently added a handfull of new tradlines to help bump the score. . . and if you know anything about FICO, new tradelines drop your score until they're no longer "new" in addition to the small drop in points from inquiries. These should rebound well before I start actually talking to the folks at DVC, but I'm still curious as to what they look for as far as credit history when financing DVC. Some lenders look for certain mixes of accounts, some look down on even one late notation. . . So I'm just trying to figure out where they fall on the spectrum. I don't want to waste my time (and the hard inquiries) if they're looking for someone with 30+ years of history - I'd just go ahead and try and find financing elsewhere on my own.

I keep hearing their financing is "easy" but I'm just curious as to how "easy" it really is.

 

[GrimGhost]

Here is what I know. The loan does not show up on your credit report. I'm not even sure the inquiry does (it might-don't quote me). They (Disney) rarely, if ever, turn someone down for financing, since they can simply take your points back if you default or fail to pay your dues. You can't lose and neither can they. Now is DVC right for you, that is another ENTIRELY different debate. I wish I would have bought when I was your age, I waited and waited and now I have payed for over 500pts and could have saved alot of money per point had I bought when my instinct told me I should have.

 

[Rence]

It is pretty easy because it is a secured loan.

If you don't pay your credit card, which is an unsecured loan, the credit card company has to try to pry money out of you somehow, collection agencies, taking you to court etc. Messy stuff.

If you don't pay for DVC, which is a secured loan, Disney takes back your points.

People with less then perfect credit have had to put up a larger down payment. I think I heard of one case where it was close to 50%, but all other cases were 20% to 30%.

I have heard of folks with bankruptcies on their record getting approved (with a decent downpayment). The areas where I recall that people were not approved:
No Credit History - just starting out, had no credit history at all, so Disney wouldn't approve.
Debt Ratio way out of wack - You have to be able to pay the loan back, so if you are in debt up to your eyeballs and want to take on another considerable payment, Disney may be saying No. They need to see sufficient income so that you can actually meet all your payments.

Lots of folks posted on here worried that they would not be approved and in the end they were.

 

[byoung]

You never know until you try.

 

[Boston5602]

I called my guide today to tell him we were going to buy , but we still hadn't decided how to Pay for it through Disney or tax refunds , or home equity loan.
He told me I can start the process with disney they start at 9.9% AND if you had troubled credit it would be 13.?% and if we decided to go with another way they would just throw out the paper work for financing and I would already have the purchase papers done.


Good Luck

 

[MyGoofy26]

Thanks everyone for the info! Eases my mind a bit. I just spent the past few months paying off most of my debt so that after graduation I'd have minimal financial commitments. My utilization is very low, so hopefully that helps. I was just worried because I get denied by some creditors because my "average age" is only 3 years - oldest tradeline is 9 years. Plus I was planning on waiting to buy in until I had a healthy downpayment anyways.

Now I'm even more excited to research this stuff!

 

[MyGoofy26]

Now is DVC right for you, that is another ENTIRELY different debate. I wish I would have bought when I was your age, I waited and waited and now I have payed for over 500pts and could have saved alot of money per point had I bought when my instinct told me I should have.

My mom always says she wished she would have bought when they first made the DVC available.

From the research I've done, I think it is right for me, LOL. From my vacation habits, it's a great fit for me. I refuse to stay in a value resort, LOL! I really prefer moderates and deluxes (and if I wasn't constantly travelling on a college student's budget, it'd be deluxe all the time, LOL) Plus I manage to make it to WDW at least once per year.

I'm definitely going into this knowing it's not an "investment" monetarily. I know there are a number of people who would frown on this being my first choice to spend money out of college, but the way I see it. . . I'm not going to stop vacationing in WDW anytime soon, and right now I have no financial obligations other than my student loans that won't even go into repayment until next year. I like the idea of putting the money towards this now and not having to worry about coming up with vacation money later when I have kids, a mortgage, etc. It'll always be covered as long as I'm paying the annual fees.

 

[GrimGhost]

MyGoofy26, Quite honestly, it sounds like it's right for you. You go to WDW every year, you like mod or deluxe hotels. Again, only you know what you can afford. Its worth it for me. I love WDW, I go every year and I can't see that changing. Good luck in whatever you do..just in case -- Welcome Home -- in advance!

 

[linzbear]

Just for a point of reference, my DH and I are both 25, and we got approved with a 10% downpayment (for 150 pts). We also have student loans, not much CC debt, no car loans, no house.

 

[hopare]

I wish I had done it when I was 25-it would be all paid off. Believe it or not things get harder sometimes when you get more responsibilities like kids and a house! Enjoy!

 

[linzbear]

I wish I had done it when I was 25-it would be all paid off. Believe it or not things get harder sometimes when you get more responsibilities like kids and a house! Enjoy!

Yeah, that's our plan. We'll have kids & consider buying a house right about when it'll be paid off (1-3 years), and then our kids will have many, many vacations in the years to come.

 

[Disney Doll]

My mom always says she wished she would have bought when they first made the DVC available.

From the research I've done, I think it is right for me, LOL. From my vacation habits, it's a great fit for me. I refuse to stay in a value resort, LOL! I really prefer moderates and deluxes (and if I wasn't constantly travelling on a college student's budget, it'd be deluxe all the time, LOL) Plus I manage to make it to WDW at least once per year.

I'm definitely going into this knowing it's not an "investment" monetarily. I know there are a number of people who would frown on this being my first choice to spend money out of college, but the way I see it. . . I'm not going to stop vacationing in WDW anytime soon, and right now I have no financial obligations other than my student loans that won't even go into repayment until next year. I like the idea of putting the money towards this now and not having to worry about coming up with vacation money later when I have kids, a mortgage, etc. It'll always be covered as long as I'm paying the annual fees.

You sound like a smart kid.

 

[Disney Doll]

We honeymooned there in 1991 and I wanted to buy then, because they were offering APs included in the purchase which were good till the year 2000!!!!!! DH felt that we should be sensible and save for a house first. We discussed it and ended up saving for the house, then we bought DVC in 1997, but there's always a part of me that thought that for all the money we spent going to WDW from 1991-1997, we could have bought DVC, paid it off, and bought a house and not have had a DVC & mortgage payment at the same time, because chances are DVC would have been paid off, or very close to paid off, before we bought the house if we had bought DVC in 1991.

In any event, we did what we did, and it worked out OK in the end. But I like your idea of buying now while your other debt is low and if you get a decent paying job. Then as life changes and you add a spouse and kids to the mix, you'll have a nice vacation spot!!!! Plus, the sooner you get the DVC paid off, the more of a "value" it becomes.

 

[MyGoofy26]

Just for a point of reference, my DH and I are both 25, and we got approved with a 10% downpayment (for 150 pts). We also have student loans, not much CC debt, no car loans, no house.

Thanks! That does help. I wasn't sure if the process was like a mortgage, or just a standard credit process, or what. I spend a LOT of time at CreditBoards and I see a lot of lenders who want a well balanced credit report, they want different types of credit. Mine is basically just credit cards, student loans and my car loan (that doesn't even report on all three so there's a chance that whatever report they pull will just show CCs and student loans)

I'm feeling MUCH more confident now. Thanks again everyone!

 

[Ms.Mouse]

I was worried about it too. We have good BUT not Great credit. We have our mortgage, another loan AND my student loans and we got accepted for financing. Actually, it's the first BIG purchase I've made since finishing school (June 05) and I'm a little nervous about it. I just want to pay it off as quickly as possible.

 

[sanilacjack]

See...know I'm really confused.

I thought that they ran a credit check on you before your documents are even sent to you. We are in the process of going through this right know.
I talked to a guide on the phone last Friday. He took all of our info including ss numbers. Yesterday we gave Disney a 20% down payment and today our guide gave us our members number to book ressies. Our guide said Welcome Home everything is taken care of just sign and return the papers, the hard part is over?????
If a person is not approved or what ever I wouldn't think Disney would waste their guides time and all the paper work and mailing everything if they didn't know for sure it was a done deal. I guess I'm just used to traditional banks.

Its almost to easy...it has me confused.