Best place to take a loan from?

[note2001]

Assuming your next trip is at Disney dvc....

Why would I want to pay $100/mon towards a trip I wasn't going to take? What if my next vacations are at the Great Lakes?

Like it or not - you've committed to vacation consistently with Disney. The 'every year' is just a detail that you can dodge, but you are locked into paying yearly and hour points have a finite lifespan. The only real out is renting out your points.

Another good argument against buying DVC. It's not for everyone, there's a reason quite a few of those DVC sales folk move on to other jobs. It's not easy to sell when only one out of every 100, or maybe 1000 people they encounter is a good fit.

Before someone mentions it... DVC is affiliated with non-Disney resorts, but let's not go there with this as they are not a smart use of points or money.

 

[BigTxEars]

Another good argument against buying DVC. It's not for everyone, there's a reason quite a few of those DVC sales folk move on to other jobs. It's not easy to sell when only one out of every 100, or maybe 1000 people they encounter is a good fit.

Before someone mentions it... DVC is affiliated with non-Disney resorts, but let's not go there with this as they are not a smart use of points or money.

I don't think even Disney would suggest its for everyone. But it sure seems to be a pretty big success for them as they continue to build their business within DVC.

 

[note2001]

I don't think even Disney would suggest its for everyone. But it sure seems to be a pretty big success for them as they continue to build their business within DVC.

Disney's crown king of sales: they can sell ice cubes to an Eskimo in January.

 

[BigTxEars]

Disney's crown king of sales: they can sell ice cubes to an Eskimo in January.

Yep

But that is also because they offer a top quality product and they have a very trusted brand.

 

[sxeensweet]

Assuming your next trip is at Disney dvc....

Why would I want to pay $100/mon towards a trip I wasn't going to take? What if my next vacations are at the Great Lakes?

Like it or not - you've committed to vacation consistently with Disney. The 'every year' is just a detail that you can dodge, but you are locked into paying yearly and hour points have a finite lifespan. The only real out is renting out your points.

Me and DH do go on other trips and enjoy them as well. The dues are not a waste b/c it's going basically like a savings towards our next Disney trip. And it does save us money over time and trips we would already be taking regardless of owning! I did the math in depth before I made the decision to buy and we are definately going to save money plus we don't have to come up with a large amount each trip and saving $100 bucks a month if we did not own would not even come close to enough to pay for a future Disney trip even if we wait 2 years! At least not the kind of room we like to stay in.
We do not want an "out" that is why owners buy into DVC! Lol. We know we are going to want to go on a regular basis whether that's every year or every other year etc etc. If we did not think or want to go regularly we would not buy into DVC period! Lol. That is not the only "out" either renting points...,,you can sell and get out of DVC all together and nothing is wasted because most before they sell it get a lot of use out of the money they already spent. Most of us even is we sell and lose a little money we did enjoy it while it lasted! Lol No loss at all to DVC owners. That is a lot of us owners opinions and most negative opinions come from non owners! I used to be in that Category but now I'm in the positive category of very happy DVC owners! **also it is not right for everybody! I totally understand that especially for those like mentioned by other poster that usually only stay at Value or Moderate resorts. We personally always stayed at Deluxe/Deluxe Villa so that is why it fits our needs and wants. **

 

[GoofGoof]

I don't think that. I'm just saying, it seems that some DVC owners have this idea that if you don't own, you can't go every year. Go when you want or don't want, DVC or not.

I agree totally. I know a number of people who regularly stay at values and moderates on most trips and could never justify the extra cost (especially with free dining). I knew a couple with no kids who were neighbors at my old house who had been to CBR every year since it opened. They stayed in the same section of rooms and everything. Probably some of the most loyal and dedicated customers WDW has. I asked them if they ever considered buying into DVC since they go so frequently and they said they would if they opened one at CBR (which ironically is possibly rumored to be coming now).

I would guess that a large portion of DVC owners were already frequent visitors to WDW. Not the impulse buyers who went on a tour during a one time trip and were "sold" a timeshare, but those who actually looked into it and did some homework. Around here the majority of people posting were probably in the regular visitor category (we are posting on a WDW fan page after all).

 

[sxeensweet]

I agree totally. I know a number of people who regularly stay at values and moderates on most trips and could never justify the extra cost (especially with free dining). I knew a couple with no kids who were neighbors at my old house who had been to CBR every year since it opened. They stayed in the same section of rooms and everything. Probably some of the most loyal and dedicated customers WDW has. I asked them if they ever considered buying into DVC since they go so frequently and they said they would if they opened one at CBR (which ironically is possibly rumored to be coming now).

I would guess that a large portion of DVC owners were already frequent visitors to WDW. Not the impulse buyers who went on a tour during a one time trip and were "sold" a timeshare, but those who actually looked into it and did some homework. Around here the majority of people posting were probably in the regular visitor category (we are posting on a WDW fan page after all).

Totally agree as well! Well put GoofGoof!

 

[GoofGoof]

Assuming your next trip is at Disney dvc....

Why would I want to pay $100/mon towards a trip I wasn't going to take? What if my next vacations are at the Great Lakes?

Like it or not - you've committed to vacation consistently with Disney. The 'every year' is just a detail that you can dodge, but you are locked into paying yearly and hour points have a finite lifespan. The only real out is renting out your points.

I choose like it...for now anyway

With banking and borrowing you can go every other year or even every third year if you want. To your point, you eventually do need to use the points or rent them, but the every year thing isn't a firm requirement.

I do the every other year thing with my points using banking and borrowing. In the off year I still pay a maintenance fee, but I'm not paying fees for a vacation I am not taking I'm paying some of the costs I deferred from last year's vacation. My 2013 trip used my 2013 and 2014 points by borrowing. I only paid maintenance fees on my 2013 points in 2013 and then paid fees in 2014 which were for points I already used. In my non-Disney years I generally take less expensive vacations anyway so from a budget standpoint I can defer some of the expensive Disney year costs to the next year leveling things out a bit.

 

[wdwjmp239]

Not trying to be rude but if u have to take out a loan for DVC, you probably shouldn't be buying into it in the first place...

Their financial situation may be different than yours. They may be doing it to pull out a "credit line" to up their credit score.

We were looking into pulling out a loan just to pull one out, pay the loan back, and up the credit score, but decided to just pay for our DVC membership outright. It's simpler that way.

 

[wdwjmp239]

....and something to consider: When one CAN just pay cash for that DVC entry fee? With all the other "large debt" issues like house payments resolved? Do you even CARE what that silly Credit rating is? There is nothing better in the world than not NEEDING someone else's "rating". Pay off all that debt, save consistently... you probably won't become Warren Buffet - but you CAN achieve freedom from these silly numbers.

True true.

 

[Phonedave]

....and something to consider: When one CAN just pay cash for that DVC entry fee? With all the other "large debt" issues like house payments resolved? Do you even CARE what that silly Credit rating is? There is nothing better in the world than not NEEDING someone else's "rating". Pay off all that debt, save consistently... you probably won't become Warren Buffet - but you CAN achieve freedom from these silly numbers.

It still helps to have a good credit rating.

You never know when it can come in handy.

My grandparents were thrifty and my grandfather once lost a business when his landlord refused to renew his lease (it's hard to move a large auto body, engine repair, and towing company with impound when your landlord refuses to renew), so they were very credit shy. Anyway, later in life they were worth a good deal of money, but had no credit. Their kids bought them a cruise for their anniversary. Despite having no debt, owning their house free and clear, holding the mortgage on their old house when they sold it, and having a sizable net worth, they could not get a credit card to use on the ship. They had to borrow my fathers (they had the same name).

It is good to be free of needing a good credit score, but that does not mean you should ignore it.


-dave

 

[note2001]

Their financial situation may be different than yours. They may be doing it to pull out a "credit line" to up their credit score.

We were looking into pulling out a loan just to pull one out, pay the loan back, and up the credit score, but decided to just pay for our DVC membership outright. It's simpler that way.

Keep in mind that loans taken out through DVD's financing do not show on the credit report.

I'm a bit disturbed that the OP came here asking for a little advice on the best place to seek out a loan and suddenly quite a few folk went Ramsey 101 on him/her.

 

[squidward]

Keep in mind that loans taken out through DVD's financing do not show on the credit report.

Actually, that's not true. I was told that by a DVC sales person, but when I insisted they look into it, they confirmed it does show up on your credit report.

 

[note2001]

Actually, that's not true. I was told that by a DVC sales person, but when I insisted they look into it, they confirmed it does show up on your credit report.

I took out my loan in Oct of '08. The initial credit inquiry showed up, but over the year and a half that I had that loan, it never showed up as a line of credit. Now, that was 6 years back and things may have changed since then.

 

[sxeensweet]

Actually, that's not true. I was told that by a DVC sales person, but when I insisted they look into it, they confirmed it does show up on your credit report.

Not trying to be rude at all but I know for a fact the actual loan DOES NOT show up on your credit report! The ONLY thing that shows up is the inquiry from applying for it!
We have had our DVC loan directly from Disney for 1 1/2 years and it us not on mine or my husbands credit report. We check both our full credit reports every single month on all 3 bureaus and it has never shown up on any of them! (We pay or monitoring service monthly to have access for free to our scores and full reports with all bureaus).
The only way it shows up if you go directly through Disney is if you default like being late etc on your loan. I know many others just like us and it has never shown up on their credit reports either! I do not know why anyone's would show unless you do not borrow/finance through DVD, or you default. That is quite odd.

 

[sxeensweet]

I took out my loan in Oct of '08. The initial credit inquiry showed up, but over the year and a half that I had that loan, it never showed up as a line of credit. Now, that was 6 years back and things may have changed since then.

We just did ours in 2013 and it still does not show up and was one of the many reasons we chose buying direct. Forgot to note we also looked into adding points just last month and I asked if it still does not show up except the inquiry and they said that was still the same and will not be changing into the foreseeable future because it helps them to get more direct buyers because a lot of people like that it does not show up.

 

[wdwjmp239]

Keep in mind that loans taken out through DVD's financing do not show on the credit report.

I'm a bit disturbed that the OP came here asking for a little advice on the best place to seek out a loan and suddenly quite a few folk went Ramsey 101 on him/her.

I wasn't offering any financial advice. So, I'm not sure what is going on here.

 

[squidward]

Not trying to be rude at all but I know for a fact the actual loan DOES NOT show up on your credit report! The ONLY thing that shows up is the inquiry from applying for it!
We have had our DVC loan directly from Disney for 1 1/2 years and it us not on mine or my husbands credit report. We check both our full credit reports every single month on all 3 bureaus and it has never shown up on any of them! (We pay or monitoring service monthly to have access for free to our scores and full reports with all bureaus).
The only way it shows up if you go directly through Disney is if you default like being late etc on your loan. I know many others just like us and it has never shown up on their credit reports either! I do not know why anyone's would show unless you do not borrow/finance through DVD, or you default. That is quite odd.

Actually, my bad - You are correct. It shows up on your report if you default on the loan. That was my question to the sales guy. He was trying to tell us there was no risk if we defaulted. Disney simply took the points back and I wasn't buying it. I insisted he confirm this for me and he did. It shows up, as you said, if you default.

Otherwise I'd have purchased about 5,000 points.

 

[sxeensweet]

Actually, my bad - You are correct. It shows up on your report if you default on the loan. That was my question to the sales guy. He was trying to tell us there was no risk if we defaulted. Disney simply took the points back and I wasn't buying it. I insisted he confirm this for me and he did. It shows up, as you said, if you default.

Otherwise I'd have purchased about 5,000 points.

Lol! I thought that was odd when you said that so I had to say something. Lol We knew it was a very slim chance we ever would default b/c we have never done that before.
I know life happens though and if things get ever too tight for us we will try to sell but we pray that will never happen!! I love the feeling of owning a piece (very tiny piece lol) of the Magic. We also are trying to pay it off early as well.

 

[BigRedDad]

I want to caveat this before I make any comments. I have no issue with people owning DVC or timeshares. It is the right thing for them.

My opinion is that you should never borrow to purchase a timeshare. If you cannot pay cash for it, you don't need it. There are enough timeshares (not DVC) for sale so cheap that you can save up in a few months to buy them. There are also enough people that do this as a business that you can get excellent deals on rooms that would be less than the maintenance fees for the room. For instance, I have a recent deal on a 1-BR Boardwalk Villa for 7 nights. This is a total of ~240 points. Maintenance fees are $5.84 per point (2013). The cost for that room is $1400 in annual fees. I got my reservation for $1200. That is $200 less than what DVC owners have to pay for it directly.

A similar instance this Summer we got a timeshare in Williamsburgh for $400 for a week. The family behind me when I went through the Timeshare Sales spiel to checkin got furious because I paid that amount. They just spent $50,000 for the timeshare and their fees for that same week amount to $1200. When I showed the slick timeshare guys my contract, what I paid, they had no grounds to stand on to show "how much I will save in my life time".

My advice, get a Financial Adviser before committing.