PSB Dilemma!

[Anonymous]

Hi All!I have a dilemma and am seeking advice...I currently have 4 CC's. They are:

CITI Platinum Select MC: CL:$1200/Avail. Balance:$861(1 year old and 9 months left with 0% APR)

Discover More Card: CL:$1250/Avail. Balance: $1250 (Recently Opened and 9 months 0% APR)

Public Savings Bank Secured Visa: CL: $300/Avail. Balance:$63 (2 years old)

Orchard Bank Platinum: CL: $300/Avail. Balance: $300 (2.5 years old)

Credit Score: EQ: 707 and TU: 695

The Orchard and PSB were rebuilder cards and now after more than two years of ontime payments and heavy useage I am getting prime cards. I was considering closing the rebuilders and recently PSB was taken over by Capital Bank and the terms on the PSB Secured have now changed. Effective 11/2011 the card will now have a $50 AF and higher APR's. I refuse to accept these terms and was wondering how to go about severing my relationship with PSB/Capital Bank. Should I:

1. Do a Balance Transfer to my new Discover Card (BT is 9.99% for 12 months plus a 5% fee) (Yikes!) 

or

2. Pay off the card before the new changes kick in, close it and wait for my $300 to be returned.

Any other suggestions or options that can provide me with the best-case senario in this situation?

Appreciate any help you all can give!Thanks!

[drkaje]

I'd go with option #2 and apply the returned $300 towards another card (before the balance reports) to lower your utilization percentage.

Having low limit cards maxed out is probably holding your score back.

[Anonymous]

Thanks for your reply....maybe I reported my available balances wrong but the numbers above with regards to my available balance is what I have available not what i owe...Sorry if i misrepresented but for example, I have $861 available on my $1200 CITI card etc...Maybe I should have said available credit...My apologies....

[Anonymous]

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@Anonymous wrote:

2. Pay off the card before the new changes kick in, close it and wait for my $300 to be returned.

Any other suggestions or options that can provide me with the best-case senario in this situation?

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It will actually sit in the bank until after you closed the card for like 10 weeks then you need to call them and demand them to return your money. It's annoyed that they get the nerve to keep the deposit without automatically sending it back to cardholder just because their card processing department and deposit department aren't working together.

[scientifics]

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@drkaje wrote:

I'd go with option #2 and apply the returned $300 towards another card (before the balance reports) to lower your utilization percentage.

Having low limit cards maxed out is probably holding your score back.

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Agreed!

[clocktick]

#2 definitely.  No sense in paying more in the long-run with BT fees and interest (of any rate).  Just keep on them until your deposit is returned.

[Wolf3]

I closed mine in January.   I had $0 balance.    They wait 10 weeks before starting to process the return.   It took another week.

When I called to close it, they asked if I had a balance to pay off.   I believe they said they would pay off the balance (not sure when)  and then you have to wait for the remainer. That is a much better deal, but you should ask them about that first.

[Anonymous]

Thanks guys.Wolf3 ,  Iactually thought about your suggestion and it makes sense as long as they dont close the card before paying off the balance and sending me the remainder...I dont want o have to wait 10 weeks to get my $300 back as opposed to a mere $50 bucks...I will call them right now!Thanks again you guys!