Someone once explained why they always borrow...

[Deemarch]

into next year. Could you please tell me again?? I might have to hear this before I make my next ressie.

Denise

 

[Doctor P]

People have said that if you always borrow for your reservations, you never have to worry about remembering to bank your points or remember the banking deadlines. We tend to both bank and borrow as appropriate (though it takes some planning so that you don't lose points--I have our trips mapped out through 2009 to get our point use optimized [we have points at three different resorts now, so that adds a little to the necessity of planning]). Good luck with your ressies!

 

[pumpkinboy]

Doctor P expresses one of the reasons well.
But another one would be the old finance truism:
a dollar today is worth more than the promise of a dollar tomorrow.
Since there is no cost to use next UY's points in this UY (and they are not earning interest), it makes good financial sense to use them ahead of time.

True, it does limits your options in the next UY, but who knows what'll happen in the coming year?

That being said, we banked this UY and will likely do so again next UY. We are mainly banked points this UY so we can save this year's on a BWV GV in 2006. I do this recognizing that borrowing makes better sense financially.

 

[tjkraz]

I like to stay borrowed so that we don't have to deal with banking as Doctor P said. And, if we've got the points, why not use them?

Realistically, in our couple of years' worth of ownership we've never been more than half borrowed into the next year. That does leave some breathing room for unexpected trips. But since we purchased APs in May of '04, we figured we might as well get our money's worth by using our fair share of points between now and May '05.

We'll probably just get by on a Hopper pass for our next trip after these APs expire. And, while fewer points may mean a shorter trip down the road--it also means we won't need to fork over the cash for a longer Hopper.

 

[Happy Birthday Cat]

The way I see it is even if we were to borrow every point for every year, all that means is that we won't have points in 2042. We'll be pretty old then so I would rather use the points now. I never worry about it. Unlike borrowing money, there is no penalty for doing so. So why not do it?

HBC

 

[Sammie]

It really is a personal situation. I have found it funny to read threads here that it's "bad" to borrow points. Probably one of the funnier threads to me I have ever read.

Sometimes we just need to borrow, once or twice we banked a few, not often. Mainly I really don't see where it matters and will have no affect as stated until that last year.

By then we won't care.

 

[BillPA]

The disadvantage of borrowing is if you have to cancel, you could end up losing all your points. Where if you just stick to you current UY, most of the time, and have to cancel you would be able to bank the points as long as you plan accordingly. The few $$ if any you save by borrowing, will be nothing compared to the loss of a years worth of points.

 

[TDC Nala]

It's not borrowing. It's a reallocation of points.

 

[MDonley]

When you borrow something, aren't you supposed to (eventually) give it back?

 

[jmatzen0106]

Borrowing eliminates the need to buy additional points.

 

[living la vida mickey]

I'm with jmatazen0106 and Happy Birthday Cat. We've never had to buy extra points (190 purchased in 93) and we'll be in our 90's in 2042 and I won't care. It's a personal decision but I do agree that it's very funny to read the posts that say it's "wrong " to borrow points. By borrowing, we've done a lot with our points including taking the 7 day cruise all on points. Use them creatively and have fun. That's what you bought them for.

 

[Pig Pen]

You mean some people don't borrow????

 

[DiznEeyore]

Originally posted by BillPA
The disadvantage of borrowing is if you have to cancel, you could end up losing all your points. Where if you just stick to you current UY, most of the time, and have to cancel you would be able to bank the points as long as you plan accordingly. The few $$ if any you save by borrowing, will be nothing compared to the loss of a years worth of points.

I'm not sure I understand this ... Are you referring to cancelling more than 30 days prior to check in? That's the only time I can see an advantage to not borrowing, because those points will be restored to your account, and then you could bank them from there.

But for less than 31 days, the penalties for cancelling are the same whether your points are current or borrowed, aren't they?

Or am I missing something?

 

[Laurabearz]

More than 1/2 of our points are in a December UY.... and December 2004 UY points are current mostly in 2005... got confussing...

So we borrow them. LOL And use them in the year that they are named... if that makes sense, and 'banking' to us, is not using 2004 points in 2004, but in 2005 when they are current.

It is twisted logic but it works for us.

 

[BillPA]

Originally posted by DiznEeyore

I'm not sure I understand this ... Are you referring to cancelling more than 30 days prior to check in? That's the only time I can see an advantage to not borrowing, because those points will be restored to your account, and then you could bank them from there.

Once you borrow points you can not bank them, they MUST be used before the current use year expires. Sort of the same with banked points, they must be used in the NEW UY, you can NOT re-bank points.

Hope that helps. Some of the rules are a little confusing. If you have any doubt on any of the rules, this is the place to get it explained. Doc and other really understand DVCs rules. Some of us older member have learned by assuming and making errors.

 

[RweTHEREyet]

Originally posted by BillPA
The disadvantage of borrowing is if you have to cancel, you could end up losing all your points. Where if you just stick to you current UY, most of the time, and have to cancel you would be able to bank the points as long as you plan accordingly. The few $$ if any you save by borrowing, will be nothing compared to the loss of a years worth of points.

I agree with BillPA on this one. Also, if you borrow and then want to ever rent some points out for whatever reason, it can make for a sticky situation.

That being said, I am borrowed out until 2006 on my OKW contract and won't get BCV points until Sep 2005 and no more SSR points until Dec 2005.

We used a lot of weekend holiday points last year and it may take a while to recover from that.