Disney Credit Card

The Walt Disney Company, Chase Bank, and Visa, together introduced the Disney Rewards Visa Credit Card. Michael Eisner, the former CEO of 'The Walt Disney Company' wanted to provide people with a competitive credit card that would encourage them to enjoy a fun-filled Disney vacation, by splurging at Disneyland Resort, Walt Disney World Resort and Disney Cruise Line. The card was also meant to help people shop at the Disney Store and buy other featured items from the Disney catalog. In other words, this card was meant for Disney lovers and their families.

Deriving Benefits from the Disney Credit Card

Unlike most store credit cards that carry exorbitant rates of interest, a sure way of plunging a shopper into debt, the Disney card has a number of positive features.

0% Introductory APR and 0% APR for Vacation Financing for up to 6 months: The Disney Rewards Visa Card offers 0% Introductory APR. APR, or Annual Percentage Rate, is the rate of interest which is charged on the balance on a credit card. It is also the rate of interest which is charged on the balance transferred from one card to another. Cash advances obtained using credit cards are also subject to interest based on the APR. Since most people use them in order to make purchases which they otherwise cannot afford, they pay only the minimum balance on the card. Sometimes, they may find it difficult to pay even the minimum balance. This in turn results in a higher APR. A card which carries 0% introductory APR can be useful for people who want to settle their old debts. Instead of paying interest on their current purchases, they can use the money to pay off old debts in order to avoid further penalties. Taking a vacation when bills are due can weigh heavily on a person's mind. Disney credit cards offer a great solution by providing interest free vacation financing for 6 months!

No Annual Fee: The Disney credit card does not carry an annual fee. Generally, credit cards that have a lower APR carry an annual charge. Whether the absence of an annual fee is useful would ultimately depend on how much a person charges to his credit card. In case of a cautious shopper, it is possible that (higher APR on the Disney card after the initial introductory period) < (lower APR + annual fee on other cards), thus allowing him to benefit from zero annual fees.

No Block Outs: The Disney Rewards Visa Card does not have block outs. A credit card block out is an embarrassing situation that can result in people finding it difficult to charge items to the card, despite staying within the credit limit. Block outs happen when a merchant is unable to estimate the total tab. This may happen in case of renting a car, since the driver may get into an accident and damage the car. Hence, the rental car agency may block more than the actual amount charged for renting the car. In case a person is close to his credit limit, a block for a greater than anticipated amount may result in exhausting his credit line. This is especially true when people go on long vacations. With a Disney card, they can be confident that their credit line will not dry up.

Theme Park Benefits and Disney Credit Card Points: In addition to the above mentioned benefits, owning a Disney card provides a person information on promotional Disney events, and helps him benefit in the form of deals and special discounts. For every $100 dollars spent, a person earns 1 Disney dollar. The latter can be used at any Disney store or Disney theme park. A first charge on the Disney credit card entitles a person to a Disney store gift card worth $15.

Disadvantages of Disney Credit Cards

High APR after the Introductory Period: The variable APR following the introductory period can be as high as 15% or 19%, depending upon the credit rating of the borrower. In other words, a lower APR would be subject to a good credit score. Moreover, even during the introductory period, a default on any payment (not necessarily credit card) can result in replacing the 0% APR with a higher rate, based on the prime lending rate.

Short Grace Period: The grace period on the card is 20 days. In other words, a person can avoid paying interest on the amount charged to the card provided he pays the entire amount within 20 days. There are other cards that offer a grace period of 30 days.

Credit cards are wonderful if used prudently. A person can buy now and pay later. However, one must remember that money spent today has to be paid tomorrow. In fact, it is better to pay off the entire amount borrowed within the grace period, so that interest does not accrue on the amount charged to the credit card. Disney cards are no exception.They can help us enjoy the wonders of Disneyland, provided we bear in mind that vacationing at Disneyland may not always figure in the grand scheme of things.