Financing Direct

[striker1064]

Agreed, LightStream was around 4.5% on the low end last I looked which was a couple of months ago.

LightStream isn't quite that low anymore, their lowest rate with autopay is 6.24%. That still beats direct financing though if you can't find anything better.

 

[EM Lawrence]

You could purchase on a Disney Chase Visa and get 0% for 6 months... they will typically space out a deposit and final payment a bit, so you will have a good 7 months to repay.

Whatever is not paid, transfer to whatever 0% offer you can get on a current credit card. I am regularly offered balance transfers at a flat fee of 2% with 0% interest for 18 months thereafter. (Capital One is constantly offering me this on my existing card.)

So, let's say your purchase is $15K... you earn either $150 or $300 on a Disney Visa, then you pay off say $10K in 6-7 months. You transfer $5k for a fee of $100 to a card and have a leisurely 18 months to pay that off. You still come out ahead because you earned $150-$300 on the initial charge.

I’m resurrecting this, because I am thinking about doing exactly this if I decide to purchase direct. Have you successfully used this strategy? Are the transfer fees on both ends of the transaction the only potential pitfall?

 

[4luv2cdisney]

I’m resurrecting this, because I am thinking about doing exactly this if I decide to purchase direct. Have you successfully used this strategy? Are the transfer fees on both ends of the transaction the only potential pitfall?

I purchased on my Disney visa and used the 6 months (7 months). It cost me nothing and earned me rewards. I charge a lot on this card every month but pay the balance in full every month. You can leave the promo balance (DVC purchase) on there but still use the card regularly. They show it on your statement separated out. It doesn't get charged interest unless you don't pay it off in time.

I didn't have any balance at the end, so I didn't transfer to my Capital one but I could have. It's a card I rarely use, so that would have been the only thing on it and as far as I recall it was a flat 2% fee upfront and as long as minimum payments were made and the entire balance paid in 18 months, there were no other costs. I don't know how they would have applied payments if I had other charges on there. That's what you need to check.

I'd inquire with your current cards and see what they have to offer.

 

[Disneygal22]

LightStream has really high interest I just checked.. are there any other loan companies with lower interest rates??

 

[sethschroeder]

LightStream has really high interest I just checked.. are there any other loan companies with lower interest rates??

How long are you looking to have to pay it off? I know there is 6 months from the Disney Visa. If you have other Chase Credit Cards you can even transfer part of that credit limit to the Disney card.

There is home equity loans as well but I am not sure I would suggest that because you are putting your home at risk over DVC.

 

[Jack_Sparrow_NJ]

LightStream has really high interest I just checked.. are there any other loan companies with lower interest rates??

Are you looking to finance a direct purchase or resale ??

 

[CastAStone]

LightStream has really high interest I just checked.. are there any other loan companies with lower interest rates??

For a direct purchase I would think you could just put it on like the Citi Diamond Preferred which is offering 0% on purchases for 18 months. IF you can pay it off that fast. An unsecured personal loan from like a SoFi might have a better interest rate than like a Monera if you are willing to do that. Again the term length on that would be fairly short like 2-3 years.

 

[Duckbug.Ducktales]

If you're looking for 2 year or less payoff, you may still find it as being a good value for your family. 2 recommendations I have, as I just went through the purchasing process.

1. Really spend the time doing the math. Going rate for direct financing is 14%+ (excellent credit) no mater how much you put down. Factor those interest rate charges into your annual value/cost associated with your contract.

2. Look at other banks or financial institutions which will more than likely offer a lower rate for a personal loan. Or do what I did...I had 80% of total cost cash in hand. I charged the whole thing to one of my travel credit cards and then did a promotional balance transfer (12 months 0%, with a 2% fee). This worked out better for my situation, instead of getting a 9% personal loan for what will more than likely be paid off within the year.

No, with excellent credit it's around 9% for direct financing