Loans that typically have high interest rates include payday loans and auto loans, states Debt. The interest rate of a loan often varies according to the personal financial situation of the borrower.
Short-term loans generally have a higher interest rate than long-term ones. Moreover, unsecured loans tend to be more expensive because the loaner takes a higher risk when lending money without a collateral, reports Totally Money. Credit cards and overdrafts often have high interest rates for borrowers with a poor credit score. Loans that are intended specifically for people with bad credit scores also tend to have a high interest rate.