A "honeymoon rate" is a limited-time offer that can kick off your credit card journey with a financial advantage. Generally offered to new credit card customers, a honeymoon rate affords successful applicants a lower interest rate for a specified period.
During this honeymoon period, which typically lasts for several months, you'll enjoy the benefit of paying a reduced interest rate on your credit card balance. This can be quite handy if you need to make purchases that you might not be able to pay off in full right away.
Honeymoon rates are commonly offered to those seeking balance transfers, potentially providing a little extra breathing room and possibly making the early months of credit card use less financially stressful.
A credit card balance transfer is a type of debt consolidation that can help you pay down your mounting credit card debt faster. It involves transferring your debt from one or more credit cards onto a new card with a temporary low interest rate to minimise your charges while you pay off your outstanding debt.
The special, lower rate you’re offered during a honeymoon period will vary between different credit card providers. Some cards even offer interest-free honeymoon periods.