Teaser Rate
A Teaser Rate is an attractively low initial interest rate offered on a loan or credit product, which typically adjusts to a higher rate after a certain period, used to attract borrowers.
Benefits
A teaser rate offers a low initial interest rate on loans, which adjusts higher later to attract borrowers.
Frequently Asked Questions
What is a teaser rate?
A teaser rate is a low introductory interest rate offered to attract borrowers, usually for a limited time before it increases.
What are teaser rates related loans?
Teaser rates are low initial interest rates on loans that later increase, used to attract borrowers initially.
What is a teaser rate and why would a credit card companies use one?
A teaser rate is a low introductory interest rate offered by credit card companies to attract new customers before it adjusts to a higher standard rate.
Key Takeaway
A teaser rate starts with a low interest rate to attract borrowers, then adjusts to a higher rate later.