Which type of credit has the highest interest rate?
William Jenkins
Updated on February 03, 2026
The current highest credit card interest rate is 36%. That’s on the new First PREMIER® Bank Credit Card. The next highest credit card interest rate seems to be 34.99%, charged by the Total VISA® Credit Card and the First Access VISA® Credit Card.
What leads to higher interest rates?
Interest rate levels are a factor of the supply and demand of credit: an increase in the demand for money or credit will raise interest rates, while a decrease in the demand for credit will decrease them. An increase in the amount of money made available to borrowers increases the supply of credit.
Which of the below loans typically have the highest interest rates?
The payday loans are unsecured loan. An example of payday loan is borrowing money for short period of time. will typically have the highest interest rate.
Which is the best source of consumer credit?
Consumer finance companies concentrate on making installment loans and second mortgages. Consolidation loans are popular among customers of this credit source. Finance companies are generally more willing to make relatively small loans that commercial banks and S&Ls frequently avoid.
Are there any different types of consumer credit?
Not many years ago a prospective borrower’s credit alternatives were limited, in terms of both the kinds of loans that were available and the types of lenders which were actively making those loans. Today there are many different types of consumer credit that are available from a wide variety of sources.
Which is a credit source to be wary of?
High interest rates and fees make this a credit source to be wary of. Sales finance companies are formed to lend money to customers of an affiliated company. For example, Ford Motor Credit Company acts as a credit source to car buyers at Ford dealerships.
Why are life insurance companies a good source of credit?
Life insurance companies are a source of credit for certain policyholders who own policies that include a savings component, or cash value. Life insurance loans carry relatively low interest rates compared to the rates of comparable loans from other lending institutions.
