Teaser Rate
Content
Definition
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.
Usage and Context
A teaser rate is an initially low interest rate on loans that increases later, used 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.
Benefits
A teaser rate offers a low initial interest rate on loans, which adjusts higher later to attract borrowers.
Conclusion
A teaser rate starts with a low interest rate to attract borrowers, then adjusts to a higher rate later.
