What is the name for a low introductory rate offered on a credit card?

What is the name for a low introductory rate offered on a credit card?

• A. APR
• B. Teaser Rate
• C. Balance Transfer
• D. Cash Advance Rate

Answer: (B)

The concept being tested is promotional, low introductory interest offered on a credit card. A teaser rate is the temporary, reduced APR used to attract new customers or encourage balance transfers or purchases. It lasts for a set period, after which the rate typically jumps to the card’s standard APR. This makes it distinct from a card’s regular APR, which is the ongoing rate, and from the cash advance rate, which is usually higher and applies to cash withdrawals. It can also be related to a balance transfer, but the name specifically describing the temporary low rate is teaser rate.

The concept being tested is promotional, low introductory interest offered on a credit card. A teaser rate is the temporary, reduced APR used to attract new customers or encourage balance transfers or purchases. It lasts for a set period, after which the rate typically jumps to the card’s standard APR. This makes it distinct from a card’s regular APR, which is the ongoing rate, and from the cash advance rate, which is usually higher and applies to cash withdrawals. It can also be related to a balance transfer, but the name specifically describing the temporary low rate is teaser rate.