Teaser rates are interest rates that are low for a brief period of time.
Over the past few decades, credit cards have grown in popularity, particularly with the emergence of e-commerce. When using a credit card to make purchases of goods and services, the bank essentially provides quick loans. An introductory interest rate known as a "teaser rate" is offered by lenders to persuade customers to apply for credit cards, home loans, or other financial products. A prominent component of adjustable-rate mortgages is teaser rates.
A promotional scheme known as a credit card teaser rate briefly lowers the interest rate on the credit card. They most frequently occur when the economy is robust and typically endure between six and twelve months. This strategy is frequently used by banks to get people and businesses to use their credit lines or credit cards (for example, "Benefit from a low 3% interest rate for the first 12 months, 20% thereafter.
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