What is the interest rate Disney is charging?

[Tigger1]

I am looking at a ten year loan on 100 pts at AKV. I was only able to breifly talk to my guide Friday and forgot to ask what the financeing % was. He was off Saturday. Anyone Know?

Thanks Tigger

 

[thelionqueen]

Yes, I know. Unfortunately with the "credit crunch" the rate most people get are 14.25%. We have a FICO in the very good category, and this is the rate we got. When asking our guide, he said that this rate is the one nearly 75% of people are getting because of the economic enviornment right now.

I figure its just more incentive to pay it off asap-3 years is our goal

 

[Brave teacher]

There are 2 interest rates for financing. The preferred rate is 10.75%, and the general rate is 14.25%. I was surprisd when we got the preferred rate.

 

[edk35]

We added on Aug. 22nd at AKV (4th dvc contract) but we got the same rate our other contracts had 10.75%. He told us to finance our AKV just to get the incentive even if we had the cash in the bank. Maybe we got the same rate since the other contracts had that one. Buying through Disney is very easy and fast so that is why we went through them vs. resales or some other form of loan. We have paid off 2 contracts and 3/4 of our third one that we got in Jan. 07 just because of that high rate. I think a lot of people start out with Disney financing and then pay them off as fast as possible. WE plan on zapping the other 1/4 and the new contract we added on by year's end. Ever bit of extra money we get (thanks honey) ...gets slapped down on these. So within 2 years of first buying in.....we are DVC debt. free except for those lovely MF or until we get addonitis again.

 

[Disney Spaz]

I looked into BLT on Friday and my guide said I would be able to keep my preffered rate since it is an add-on.

 

[oldcarrot]

As a new purchase I was offered 10.75% for either 5 year or 10 year financing. They said it would be deductible, but that I should contact my tax adviser to make sure.

Given todays home mortgage rates, this seems sort of high and a home equity line would be better if one has enough equity...and is confortable doing that in view of recent happenings in the financial markets.

 

[Tigger1]

14.5% is to high. I will see what is offered.

Thanks everyone

 

[Maliki2]

We got 10.75, but we have immaculate credit. Our guide even said its not normal to see people with great credit these days.

 

[Mad4Mickey]

we got 10.75 and I was having a fit over that. We bought back in March and because of that rate we have been putting our extra money into paying it off . We are almost to the 1/3 paid off point in less then a year . I guess that motivates people to pay off and add more

 

[Maliki2]

I agree. Thats the first thing out of my wifes mouth to our guide. THATS high.

That will only motivate us to pay it off faster!

 

[hellerjw]

2 of the main benefits to going with DVC for financing vs. a traditional personal loan is that for most folks you can deduct the interest as mortgage interest (like for a 2nd home) and secondly the loan doesn't show up on your credit report.

A home equity loan/line of credit is also usually deductible but it will most definitely show up on your credit report.

Even though the preferred rate is 10.75% that's still a pretty good deal compared to traditional personal loans which are hovering in the 13-16% range these days.

 

[Pennyguy23]

We got 9.75% for one of our AKV contract They take it out of our bank so we got it 1 point lower.

 

[edk35]

We got 9.75% for one of our AKV contract They take it out of our bank so we got it 1 point lower.

Our payment comes right out of our bank too but we didn't get that lower rate.

 

[hellerjw]

The current "preferred" rate (the one that has been available for the last couple years) is actually 11.75% and they give you a 1% discount for automatic draft, so the effective rate is 10.75%.

I don't know when the PP bought in at AKV but the rate may have been slightly lower at the time they purchased.

 

[edk35]

The current "preferred" rate (the one that has been available for the last couple years) is actually 11.75% and they give you a 1% discount for automatic draft, so the effective rate is 10.75%.

I don't know when the PP bought in at AKV but the rate may have been slightly lower at the time they purchased.

ahhh okay makes sense. I am just happy that we will be done with all 4 contacts by the 2 year mark. WHEW!!!! (wiping brow LOL)

 

[BWV Dreamin]

2 of the main benefits to going with DVC for financing vs. a traditional personal loan is that for most folks you can deduct the interest as mortgage interest (like for a 2nd home) and secondly the loan doesn't show up on your credit report.

A home equity loan/line of credit is also usually deductible but it will most definitely show up on your credit report.

Even though the preferred rate is 10.75% that's still a pretty good deal compared to traditional personal loans which are hovering in the 13-16% range these days.

Why would one not want the loan to show up on thier credit report? Sometimes owing money actually UPS your credit score! Then of course, once the loan is satisfied, that too will help one's credit score. If one needs to hide the amount financed, well that should be a sign.....

 

[hellerjw]

By not showing up on your credit report it doesn't affect your "outstanding balance-to-available credit" ratios, which are a good part of your credit score.

By DVC handling it in-house it works like a mortgage loan, with the interest deductible as mortgage interest for most folks. If you put your DVC purchase on a credit card you lose the tax advantages and it shows up on your credit report as part of your outstanding card balance. While using a HELOC/home equity loan allows you to keep the tax advantages, it still shows up as part of the outstanding balance on the equity line.

I don't know how DVC handles reporting bad loans since it doesn't show up on your credit report initially. Whether they post deliquencies, write-offs, etc to the reporting agencies is something someone else will have to answer.

As for the reasons why you wouldn't want it to show up on your credit report, I think that depends on the individual. One possible reason I can think of is if you are trying to finance a big purchase and don't want extra debts to show up that might influence a lender's decision. Just a guess on my part.

 

[BWV Dreamin]

By not showing up on your credit report it doesn't affect your "outstanding balance-to-available credit" ratios, which are a good part of your credit score.

As for the reasons why you wouldn't want it to show up on your credit report, I think that depends on the individual. One possible reason I can think of is if you are trying to finance a big purchase and don't want extra debts to show up that might influence a lender's decision. Just a guess on my part.

Obviously, the first statement is why people don't want it to show up on their credit report. Why people don't want this? Because they must be overextended in the first place, or want to finance a large purchase (like a home) where additional debt will disqualify them. Well, then maybe they shouldn't be financing DVC to begin with. Again, your second statement just supports my opinion. I think you will start to see changes in DVC's lending practices.

 

[hellerjw]

Obviously, the first statement is why people don't want it to show up on their credit report. Why people don't want this? Because they must be overextended in the first place, or want to finance a large purchase (like a home) where additional debt will disqualify them. Well, then maybe they shouldn't be financing DVC to begin with. Again, your second statement just supports my opinion. I think you will start to see changes in DVC's lending practices.

I'm not arguing with you just stating a fact. I agree that they shouldn't be taking on DVC debt if their finances aren't able to support it. I think it is important to some people that it not show up and I just wanted to convey that point.

I personally have no problem with it showing up on my credit report. I know from what others have posted and from reviewing my own reports that it doesn't get reported to the major agencies.

What people do with that information is up to them.

 

[PrincessNewsie]

Obviously, the first statement is why people don't want it to show up on their credit report. Why people don't want this? Because they must be overextended in the first place, or want to finance a large purchase (like a home) where additional debt will disqualify them. Well, then maybe they shouldn't be financing DVC to begin with. Again, your second statement just supports my opinion. I think you will start to see changes in DVC's lending practices.

That may not be the case. I have $23,000 put aside for my downpayment and closing costs on a home (first home). I have almost $5K put aside for DVC BLT. I am buying the DVC in March, the home in May. I have money for both, but I don't want DVC showing up on my credit report when i'm buying a loan because I'm preapproved based on other finances and I don't want to be disqualified by the DVC financing. Even though I can more than afford the house and the closing costs and the monthly payment, I am obliged to Disney for not putting it on a credit report. Also, I will be able to pay off half almost instantly by March

In some cases, yes people may be overextended or not want a DVC default to appear on their credit report. DVC may change this practice later. But for now, I am thankful!