Definition:
An introductory rate is an interest rate that's usually below-market and is offered for the initial billing cycle(s) of the credit card. Introductory rates commonly apply only to balance transfers and cash advances. The rate expires after a certain period of time.
Introductory rates are attractive because they allow cardholders to pay a less in finance charges than they would on a credit card with a higher interest rate. Introductory rates are typically very low, ranging from 0% to 4% for 4 months up to 12 months. Cardholders can best take advantage of an introductory rate by paying off the credit card balance before the rate expires.
Also Known As: teaser rate
