Balance Transfer Advice Pls!!!!

[Anonymous]

Two days ago i was approved for a Discover More Card 1250 CL (0% APR for 9 mos, 9.99% for BT and 3% transaction fee) and AMEX Blue Cash Everyday 2000 CL (0% APR, 17.24%  for BT). I know these limits are low but Im happy to have prime cards less than 3 years after a major delinquency on a BOA Student card. Currently I have one prime card CITI Platinum Select Mastercard: Balance: 400/3000 CL (CLI of 1800 just two days ago) and two rebuilder cards Orchard Classis Platinum: Balance: 0/300 CL, PSB Secured: Balance: 250/300 CL.

Heres my issues:

1. PSB was recently taken over by Capital Bank and they now have unfavorable revised Secured card terms which includes an AF of $50 as of 11/01/11

2. My CITI 0% introductory APR rate expires on 10/01/11(19.99% APR thereafter)

I will not have the money to pay the balances of 400 and 250 on  these cards by Oct 1 and Nov 1 respectively so what should I do?

Current CS: EX: 709, EQ: 707, TU: 703

Average AoA: 1.5 years (Before new cards reporting)

Oldest TL Reporting: 2.5 years

Installment Acct: 1 Auto Loan: Since June 2008, no missed payments and never late

[Walt_K]

You've got to do the math.  How long is it going to take you to pay off those balances?  You're going to have to pay a 3% BT fee on the total balance right from the start, and it is only going to cut your CITI APR in half.  So about 4 months is your break even point assuming the entire 400 is going to sit on the card. 

You didn't provide the APR on the PSB card, so can't do the comparison.  The AF is a separate issue.  If you want to avoid the AF, I assume you can close the card while there is still a balance and continue to make payments until it is paid in full.

[barbaralee]

Another question is after the 0% is up and you still have a balance on the card do they charge back interest? I see so many people get kicked in the face with that back interest.

[Creditaddict]

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@barbaralee wrote:

Another question is after the 0% is up and you still have a balance on the card do they charge back interest? I see so many people get kicked in the face with that back interest.

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Back interest happens on store accounts, furniture, medical etc that offer 0%.... Credit Cards like Discover, Amex, Citi etc. do not back date interest if not paid in full

Original poster, Do NOT BT to the Amex, but possibly to the Discover but like other suggestion, do the math of how many months if you leave the balances will it take you to pay off, because if it's just 2 or 3 and you pay Discover 5% to do the transfer probably won't be any savings.

[Anonymous]

Thank you all for your responses...the APR on the PSB is 14.9% and I will pay the balances off on both cards fully by early December...The PSB is a secured so the CL was deposited by me...Walt if I close the card and pay off the balance will this have a negative impact on my CS?I did think about it but wasnt sure of CS impact....

[Walt_K]

There is a sticky thread at the top of the forum that explains the details of the effect of closing credit cards.  There's no impact on your credit score except that once the balance is paid off, that CL no longer counts in your total CL for utilization.  While the card still has a balance, it's CL will count.

ETA: If paying cards off by December, I would not do the balance transfer.

[Anonymous]

You may want to close the PSB card.    If you close it, they will probably apply the deposit to the balance and refund the difference after 10 weeks.    Not sure if the new bank will do it that way, but that is how it worked in the past.  

[Anonymous]

Thanks Walt! I will defini9tely be taking your advice!