When do points "go bad"???

[dstumpvt]

It sounds like a Jerry Springer show...When good DVC points go bad...

Seriously, I just bought my contract (VWL- Woo-Hoo!) I got 200 points. 92 banked from '05, 200 from '06, and 200 for '07. I'm not going back to Disney until '08. I understand that I can put the points out for rent on the boards, but I really want to understand this.

Do I have to get rid of the 92 '05 points by (calendar) year end?? The use year begins in August. Clearly we're past the 1 year mark for August '05- so that can't be right. How long do I have??

Any tips on banking and borrowing?? Is it as straight forward as it seems??

 

[dstumpvt]

I read a few posts down and saw somebody else had this question- and it was answered! Vets, you must get sick of the same questions OVER and OVER and OVER!! Thanks all!!

 

[Granny]

I read a few posts down and saw somebody else had this question- and it was answered! Vets, you must get sick of the same questions OVER and OVER and OVER!! Thanks all!!

That's okay...banking and borrowing generate a ton of questions. The important thing is that you thoroughly understand the flexibility and limitations of your ownership. So keep asking questions!

The search function on this site can help too, though I've struggled with it since it changed recently and can't seem to find anything any more.

Congratulations on your VWL purchase, and HOME!

 

[dianeschlicht]

It sounds like a Jerry Springer show...When good DVC points go bad...

Seriously, I just bought my contract (VWL- Woo-Hoo!) I got 200 points. 92 banked from '05, 200 from '06, and 200 for '07. I'm not going back to Disney until '08. I understand that I can put the points out for rent on the boards, but I really want to understand this.

Do I have to get rid of the 92 '05 points by (calendar) year end?? The use year begins in August. Clearly we're past the 1 year mark for August '05- so that can't be right. How long do I have??

Any tips on banking and borrowing?? Is it as straight forward as it seems??

Your August '05 points became August '06 points when they were banked, and they can be used for reservations that occur between August 1,'06 and July 31, '07. That means you have 2 years worth of points available right now until July, 31 of '07. On August 1st of '07, you will get a new allotment of points. If you are not taking a trip until '08, then you should bank your '06 use year points into your '07 use year and rent out the '05 use year points that are already banked into '06. Your '07 use year points are available for reservations that occur between August 1, '07 and July 31, '08, so that means you would have both '06 and '07 points available for a trip that fell within those dates. Does that help?

 

[BirdsOfPreyDave]

Banking and borrowing isn't quite as straight forward as you might think. The basic premise is easy to understand, however, there are several "ifs", "ands", and "buts" to keep in mind.

Banking Deadlines: The biggest one is banking deadlines. With an August use year, you can bank 100% of your points through January 31st. From February 1st to April 30th, you can only bank 50%. From May 1st to May 31st, you can only bank 25%. After May 31st, you can't bank anything.

These banking deadlines and percentages refer to the total banked points, not just the points you want to bank during that timeframe. So, if you have a contract for 200 points and bank 100 points on January 1st, you can’t bank any more points after February 1st, because you've already banked to the 50% point.

Banked points: Banked points can't be banked again, nor can they be transferred. They need to be used in the next year or they expire.

Borrowed points: Borrowed points can't be returned to the year they were borrowed from, nor can they be transferred. They need to be used or they're lost.

Use year: Traveling early in your use year gives you more flexibility to use your points in the event you need to cancel or postpone a trip. For example, you have a trip planned in August, have banked and borrowed points to get the villa you want, have made the reservation, and then later find out you have to cancel for one reason or another. Since the trip is in the first month of your use year, you have a whole year in which to reschedule it before any points expire. You're also at the beginning of your banking period, and can still bank 100% of your current year points if you need to.

However, if you'd planned the trip for July and had to cancel. You only have the remainder of July to use, rent, transfer or loose the points.

That leads the discussion to Holding Account Points. If you cancel a reservation 30 days or less (but before your check-in date), your points are placed in a holding account. These points, regardless of their original use year, expire at the end of the use year in which the reservation fell. They need to be used in that use year or they are lost. Holding account points can't be banked or transferred. There are also certain restrictions on what you can book with holding account points and when you can make bookings with them.

 

[dstumpvt]

Granny,
I think you've replied to every post I've made- Thank you! You are awesome!

dianeschlicht,
Thank you!! By explaining: "Your August '05 points became August '06 points when they were banked, and they can be used for reservations that occur between August 1,'06 and July 31, '07". That really helps! I still wasn't really sure when I could use/ rent them out.

BirdsOfPreyDave,
Ok, I have litterally pasted your post into a word document and printed it for my DVC book! I hope you don't have a copyright! Seriously, that was fantastic- thanks for giving a newbie such a thorough answer!!

You guys are the best!

 

[Forever a Princess]

Hi!

I just wanted to say Congratulations and Welcome Home!!!

 

[goldilocks_63]

Points, like children, go bad when they aren't loved....

also being neglected is another contributing factor

Nature (i.e. Home resort) verses Nuture is also debated .... Is a OKW point more likely to go bad than an BWV point?

Experts are watching closely....

Goldi