Teaser Rate

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This is a legal but sometimes misleading practice used by credit card companies. Typically, you come across it when you see adverts for credit cards, or when you get a credit card solicitation in the mail. The solicitation says that if you accept the card you will only be charged a low "introductory" APR. However, when the introductory period expires after a couple of months the APR usually becomes much higher, and the attractive introductory interest rate - the teaser rate - disappears.