Credit Card Teaser Rate

Credit card companies look to add customers. So they will offer incentives. Like:

Join now and get 0% for the first year!

That’s a teaser rate...an initial rate to get you to sign up. But be careful. Like a drug dealer offering you the first hit for free, the teaser rate can be dangerous.

First off, by definition, it only lasts a limited time. Second, there’s often fine print to keep in mind. For instance, some cards require you to pay off your balance by the end of the teaser period or else they charge the interest rate on the full term.