Some lenders specialize in high interest loans to risky borrowers. To compensate for the risk, these lenders charge higher interest rates. Some good examples are payday loans where people borrow money for a short term and pay it back directly with their next paycheck. Another good example is a car title loan where the borrower uses the title to their current vehicle as collateral to borrow money. The average annual interest rates for various types of loans can be found in the following table

New Car Loan with Excellent Credit 3-4% Used Car Loan with Excellent Credit 3.7 5.4% New Car Loan with Average Credit 5-7% Used Car Loan with Average Credit 10-12% New Car Loan with Below Average Credit 9% - 18% Used Car Loan with Below Average Credit 11-20% Car Title Loan 300% Payday Loan Approx. 400%