credit cards

What is a teaser rate?

 

What is a teaser rate?

The Bankrate.com financial term of the day is: "Teaser Rate" or "Introductory Rate."

A teaser rate, or introductory rate, is a lender's way of saying, "Hey you!" It's an artificially low interest rate on credit cards or other loans, and it's aimed at getting new customers in the door. When the teaser period eventually ends, the interest rate rises to a level that's more standard, and maybe less alluring.

It can be very tempting to dump your credit card to take advantage of another card's teaser rate or introductory rate. But keep in mind that the low, come-on rates are only temporary.

To find a credit card that has what you're looking for, visit the credit cards section at Bankrate.com.

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