In addition, the rate can easily change, with or without a reason. Remember that even the best credit card interest rates are relatively high-rate credit. Additionally, other terms of credit may add to the cost, so that a credit card that appears cheaper is actually more expensive. Annual fees, late charges, membership fees and the method by which balances accrue can add to the cost of credit. A teaser rate is an artificially low initial rate that applies only for a limited time.
Most teaser rates are good only for six months or less.
After that, the rate automatically goes up. Remember that if you build up a balance over the period of a temporary rate, the much higher permanent rate will apply to your repayment plan. This means that the permanent long-term rate on the card is much more important than the temporary rate. If your rate is variable, understand the basis on which it may change. Variable interest rates can be very confusing.