Balance transfer ?'s and advice needed please...

Hello all, as you can see I'm new to this board and in need of some assistance.

Ok so here's my scenario. About 4-5 years ago, I was a victim of ID Theft, but I didn't realize it until 2005 when I applied for a car loan at my bank. Anyone who's been a victim knows the hoops and hurdles you go through to clear your name.

Fast forward a year later, my credit is cleared, everything is back to normal. I got a fraud alert placed on my credit file, so I assume everything is secure. Wrong. Turns out there was still an unpaid cell phone bill circulating and I didn't realize it until I got a letter in the mail from US Bank, who happens to be my ONLY credit card company. They had initially raised my limit 3 different times and it was up to $5500. I received a letter informing me that they were lowereing my limit to $4000 due to my 'declining credit score', which was resulting from the cell phone bill finally getting to the credit bureaus.

I go through some more hoops and hurdles to try and clear that, but before I can, US Bank sends me ANOTHER letter in the span of 3-4 weeks telling me they were cutting my limit at $3300 (I owed roughly $3250) and were 'freezing' my account due to my negative credit. After some calls and faxes, I was able to FINALLY put an end to everything and situate myself.

Here I am now in '08. I decided that I was gonna call US Bank and ask that my account be lifted back to it's original status. I was told that my account was marked as 'risk retention' or something? I explained to the rep my situation and why my account had took a dip and that it had been restored and yada yada yada. Well he tells me he can raise my limit back to $4800 without reviewing my credit, and that if I want the 'tag' removed, I'd have to fax them paperwork from my creditors, a police report and type a letter explaining my situation. I agreed. I sent everything and expected the best. Wrong.

I get a letter 2 weeks later saying I have to wait 3 months to apply for a limit increase!! To top it off, my APR on the card is 25.4% due to my 'risk' status!!

At this point, I'm looking to go elsewhere. I am going to make a $1000 payment to my CC in the coming weeks, but before I do, I was curious whether I should get my balance transferred to a 'better' card/company then make the payment, or make the payment, then transfer my balance. Any tips, suggestions or questions? I tried to be as thorough ar possible about my situation, but tried to shorten it up! Thanks for any help!!

[Jeanie]

I would say go for another credit card and transfer the balance and pay it off then or pay off as much as you can. This way you can be done with that credit card and have a new start with a new card! Make sure you check out the APR's on balance transfers and possibly get a fraud protecting plan! Good-Luck!

Quote:

Originally Posted by Jeanie

I would say go for another credit card and transfer the balance and pay it off then or pay off as much as you can. This way you can be done with that credit card and have a new start with a new card! Make sure you check out the APR's on balance transfers and possibly get a fraud protecting plan! Good-Luck!

Another question I had was how does the APR work on balance transfer? Will I be stuck with a higher APR because it was a balance transfer rather than a purchase?

Quote:

Originally Posted by demonbasketball04

Will I be stuck with a higher APR because it was a balance transfer rather than a purchase?

No. Just look at your T&C. It could be fixed or variable. All depends on what you were offered when you took the deal.

From what I was reading, I get the impression that I have an APR on my balance transfer AND on my balance itself?

[Jeanie]

Maybe this APR section will help you more.

Quote:

Originally Posted by demonbasketball04

From what I was reading, I get the impression that I have an APR on my balance transfer AND on my balance itself?

Most likely, YES. If you got a low APR for a BT it applies only to the BT. If you used your card after the BT, the purchase probably has a higher APR.

If this is the case and you haven't payed the BT off, every payment you make will be attributed to the lower APR balance.

in my opinion i would say to you go for another credit card and transfer the balance and pay off as you can.

[Jeanie]

I agree sahilmiddha..then maybe never use the card you are paying off with the new one..don't close it, it may/will hurt your credit!!

~Jeanie