How to Avoid the Traps of a Teaser Rate

Teaser rates are the usually low, introductory interest rates typically offered for the first few months as an incentive. These rates are similar to credit card offers offering an unusually-low beginning interest rate. They’re designed to entice you to sign up, because after the introductory period is over, the rate will increase. Although a teaser rate may look enticing, be sure you understand all details and your financial capabilities so you don't get yourself into trouble. The examples below will help you spot a teaser rate and avoid the traditional traps.

Read the entire article here: