4000 balance transfer credit cards are perfect for consumers who want extra spending power with their credit cards. An unlimited card with a 4000 credit limit can only be spent up to the full amount of the credit line. This is true regardless of whether or not the card is used. Since the entire credit line is still open, this means that the consumer will have to pay off the balance at some point.
Many credit card companies offer the benefits of these particular cards. An unlimited spending limit and no annual fees are common. Others even offer a no fee 0% interest second year promotion. However, while the benefits are tempting, there are a few things consumers should consider before choosing this option.
One of the main things consumers should think about before choosing this option is whether or not the credit cards offer any rewards for usage. Most of these kinds of cards offer cash back, or some other kind of incentive for using these cards. Some offers may allow customers to use the card for an introductory period and pay no annual fees. However, most cards would require a customer to pay a balance each month for the full value of the card before any cash back or other benefits could be earned.
Other things consumers should consider before choosing this option are whether or not the company's incentives can easily be converted to cash back. Some cards may offer a special percentage rate against purchases. If the interest rate on the new credit card is high, or the interest rate on the original card was high, then the conversion of the points to cash back may not make financial sense. In these cases, it would be better to choose another zero rate card with the same 4000 limit.
Some companies that offer these types of zero-rate introductory offers also make balance transfers more convenient by changing the credit limit on customers old card to the new one. This may seem like a great idea, but many people find these offers are limited. After all, if they cannot keep up with the payment, then the interest will continue to accumulate. Credit cards that offer balance transfers sometimes charge exorbitant fees. So it is important to check the terms of the new zero rate credit limit to ensure there will be no additional charges once the balance transfers are made.
One of the main advantages to these kinds of introductory offers is that they offer a way for consumers to get rid of high debt balances. After all, credit cards with large balance transfers can be difficult to pay off. The interest and fees make it nearly impossible to get these balances down lower than the credit card companies. The idea of paying off our credit card balances in this manner is that we are using another avenue for debt relief by not paying the balance in full at the end of the term. These kinds of credit cards can help us to climb out from under our heavy debt burdens.
If you are interested in applying for one of these kinds of zero introductory rate offers, you should contact the company offering it. You can call them or go online to request an application. They will usually ask you for your current income tax return and for proof of steady employment. They will also look at your personal credit report and for information about your current bills. They will normally review these details before they send you a new credit card with the new 4000 credit card limit.
Before you fill out any application for any kind of credit cards, you should carefully read all the fine print. Many times the fine print can have a significant impact on whether or not you are approved for a specific offer. For example, if you miss out on one single clause in the contract, you could find that your card is suddenly discontinued. It is crucial that you read through the terms and conditions as well as the application criteria so that you know exactly what you are getting into.