Buying DVC from Disney with bad credit?

[melkimmom]

I love disney and would like to buy, but I have bad credit. Do you know if Disney will finance? Are they flexible? How can I become a member without having to buy paying cash?

 

[TammyAlphabet]

I would like to hear the responses to this also.

 

[Macnjac87]

From what I can gather, DVC doesn't turn anyone down; they just ask for more of a down payment. When we joined in January of 2000 we were on our to repairing some pretty poor credit. Instead of 10% down they asked for 30% down. When we did an add on a year later, they accepted 10%. Also, your DVC financing does not show up on credit reports. Good luck.

 

[MinnieGirl33]

Ditto.

Also, if you can still get the $10 per point incentive they apply that to the 30% down so your initial out of pocket is still minimal IMO when you consider bang for your buck.

We just joined (April UY), have yet to stay on points & are already deciding how much to add on.

Process was painless.

Good Luck!

 

[melkimmom]

Thank you for the information. I received the contract today.

 

[jennz]

Yeah - how exciting for you! We just Fed-ex'd our contract in Monday. I thought (mistakenly) that they had already run our credit but they hadn't, so I called to find out what happens if we're denied credit, do we get our $500 back? The person I spoke to actually stammered and there was silence for a moment and of course I was thinking all negative thoughts, and then she said the underwriters will look at it and the only thing they'll do is ask for more of a down payment. If you want some details email or pm me and I'll give your our background.

 

[TheRustyScupper]

1) I don't remember anyone turned down with adequate downpayment.
2) As mentioned, DVC might just want more up front.
3) As to why they don't turn people down
... they own the teimshare, and foreclosure isn't all that tough
... they can easily re-sell the foreclosed timeshare points
... they can stop you from using the time if you are delinquent
... they find that even slow payers pay DVC on time

 

[CherCrazy]

My husband was out of work when we decided to join. Can't get worse credit than that!! DVC was great. They got us started on the paperwork, then held everything until he finally got a job!

 

[jennz]

Melkimmom- I just sent you a pm...

 

[DISVACAY]

Anyone with a more recent experience with disney financing?

 

[bwang123]

Anyone with a more recent experience with disney financing?

they recently have just increased the financing a percentage or two depending on your credit. bad credit still accepted.

 

[Dean]

The OP (from 10 yrs ago) is a good illustration of a point I've made in several thread's lately. Someone who's already either made bad choices with credit, or left themselves vulnerable and had life happen at the best, now looking to do the same thing all over again. I realize that we don't have enough info on the OP and that sometimes it's truly not something one has control over such as a divorce situation, but financing a timeshare in this situation (really in all) regardless of the initial causes is simply insanity.

 

[DVCMomBLT]

Unless you've been a victim of identify theft, I can't see any scenario where buying DVC with bad credit is a good idea.

 

[Dean]

Unless you've been a victim of identify theft, I can't see any scenario where buying DVC with bad credit is a good idea.

I'm sure there will be exceptions but not very many. The exceptions that come to mind are with a divorce and the ex has caused issues that affect credit and where one had a major event like a bankruptcy or similar a number of years ago and things are going well but haven't quite healed yet. There are probably others but again, not many. As I've said many times, being able to make the payment is not the same as the item being affordable. Often the way people get themselves in such a mess is by bad choices, usually repeatedly. I talked to someone today that owes as much on their vehicle as their yearly salary.

 

[Deb & Bill]

I'm sure there will be exceptions but not very many. The exceptions that come to mind are with a divorce and the ex has caused issues that affect credit and where one had a major event like a bankruptcy or similar a number of years ago and things are going well but haven't quite healed yet. There are probably others but again, not many. As I've said many times, being able to make the payment is not the same as the item being affordable. Often the way people get themselves in such a mess is by bad choices, usually repeatedly. I talked to someone today that owes as much on their vehicle as their yearly salary.

I wonder how many of the owners who bought with poor credit are still owners.

 

[bumbershoot]

The OP (from 10 yrs ago) is a good illustration of a point I've made in several thread's lately. Someone who's already either made bad choices with credit, or left themselves vulnerable and had life happen at the best, now looking to do the same thing all over again. I realize that we don't have enough info on the OP and that sometimes it's truly not something one has control over such as a divorce situation, but financing a timeshare in this situation (really in all) regardless of the initial causes is simply insanity.

On the other hand, they could have pulled themselves out and are on the way up. Credit ratings have a really solid lag time, so you can be all fixed (mentally, emotionally, checkingaccountally, etc) but still officially have bad credit. (and maybe you haven't built up that cash reserve that many have)

I wonder how many of the owners who bought with poor credit are still owners.

Us, and our credit is a million times better than it used to be. I recognize that maybe we're one in a million (on the other hand, I don't think we're that unique at all), but financing it and then facing a layoff notice after passing the rescission period was the absolute BEST thing that could have happened to us. We finally realized that not only did we look bad on paper, but we were DOING stupid things, too. Luckily DH had a job offer pretty quickly, but we took a long hard look at everything, read some Dave Ramsey (he's useless for people who are magically good at money, but for those whose parents missed those lessons (in my case, because she was so busy working 3 jobs to take the time, and in DH's case because his dad was busy doing sneaky things with money and refusing to answer questions because it's not the business of children) he's terrific), and started doing better. Without DVC sitting there taunting us, we wouldn't have felt that razor's edge so keenly.

 

[Dean]

I wonder how many of the owners who bought with poor credit are still owners.

Almost certainly far less than the average and I'm sure many with financial issues related to buying DVC among other things that hadn't caught up by the time they bought in. Plus many more with good credit (oxymoron) who are living month to month..

On the other hand, they could have pulled themselves out and are on the way up. Credit ratings have a really solid lag time, so you can be all fixed (mentally, emotionally, checkingaccountally, etc) but still officially have bad credit. (and maybe you haven't built up that cash reserve that many have)

As I pointed out. However, I'd point out there's more than just time to healing such a situation. Generally it's centered around going back and cleaning up old debt in the absence of a bankruptcy that applies and making better choices going forward to not overextend and/or reduce risk.

Us, and our credit is a million times better than it used to be. I recognize that maybe we're one in a million (on the other hand, I don't think we're that unique at all), but financing it and then facing a layoff notice after passing the rescission period was the absolute BEST thing that could have happened to us. We finally realized that not only did we look bad on paper, but we were DOING stupid things, too. Luckily DH had a job offer pretty quickly, but we took a long hard look at everything, read some Dave Ramsey (he's useless for people who are magically good at money, but for those whose parents missed those lessons (in my case, because she was so busy working 3 jobs to take the time, and in DH's case because his dad was busy doing sneaky things with money and refusing to answer questions because it's not the business of children) he's terrific), and started doing better. Without DVC sitting there taunting us, we wouldn't have felt that razor's edge so keenly.

That's great and that's exactly the type of thing I'm talking about, congratulations. This would be my goal for for everyone, DVC or not. But to be honest, I'd put financing a luxury item of any type, and most things in general, on the bad side of that list. But then I don't believe people with a financial mess should be going on vacations, esp expensive ones like DVC.

 

[rcchello]

But to be honest, I'd put financing a luxury item of any type, and most things in general, on the bad side of that list. But then I don't believe people with a financial mess should be going on vacations, esp expensive ones like DVC.

Much less, committing to many years of expensive vacations. From a budget perspective this adds at least $300 to ones monthly budget for years.

$100 a month maintenance fees and taxes
$200 a month to save up for transportation/tickets/meals

 

[Minniesgal]

In the UK bad credit can mean a financial mess but it can also mean just not enough history. People who rent and use cash for everything no credit cards and no loans will have bad credit because they don't use credit. Ironically those with heaps of credit cars who manage to pay each month will have great credit.

 

[Dean]

In the UK bad credit can mean a financial mess but it can also mean just not enough history. People who rent and use cash for everything no credit cards and no loans will have bad credit because they don't use credit. Ironically those with heaps of credit cars who manage to pay each month will have great credit.

I'm not sure how it is over there but in the US "good credit" to most people means a high credit score. Unfortunately all that means is that you've been using credit and paying things on time. Obviously there's somewhat of a continuum but in general one can have good credit, bad credit or no credit. The no credit is the situation you're referring to. As a rule it's the people in the best situation to buy or rent anything but for those companies that only use credit scores, they can be left out. This means some mortgage companies and some rental systems, for example, will foolishly not deal with them. The credit companies don't release their formulas but as a rule it takes about 6-12 months to go from good to no credit if you have no debt (even unused CC), no open accounts, no mortgage, no loans, etc. That assumes nothing bad like foreclosures or bankruptcy. At least that's the info I'm told from a couple of different sources.

A quick google search of credit reporting in other countries suggest that often the public companies ONLY report negative information. What I saw says the UK is similar to the US.