[1] The purpose of the introductory rate is to market the loan to customers and to seem attractive.
They are commonly used for the application of balance transfers, and they may or may not apply to cash advances.
[2] In the United States, the Fair Credit and Charge Card Disclosure Act (FCCCDA) requires that the rate that will occur following the expiration of the introductory rate be clearly disclosed to the customer.
[4] A teaser rate is a low, adjustable introductory interest rate advertised for a loan, credit card, or deposit account in order to attract potential customers to obtain the service.
In a competitive market, many companies will compete with each other for the lower teaser rate.