Interest rates rely heavily on your credit score and payment history. An interest rate is essentially the payment the lender gets for taking the risk in lending you money. The lower the risk, the lower the fee. If you have an excellent credit score and a history of on-time payments, you may find a personal loan with an interest rate of under 5%. On the flip side, a bad credit score and recent late payments or defaults can land you a triple-digit interest rate on a short-term loan. Thankfully, most states have laws in place that limit the amount of interest a lender can charge. Depending on your state, you could pay as little as 5% or as much as 25%. Many payday loans operate under different laws that allow them to charge upwards of 1,200%. Usury laws only apply to the state you live in, not where the loan originated. So, for example, if you live in Florida and accept an online loan from a lender in Delaware, you’re subject to the interest rate laws for the state of Florida. If you’re ever offered a loan with interest rates that exceed your state’s limitations, report the lender to local government authorities and the Better Business Bureau.