What type of companies are known for lending money for various purposes at high interest rates?

Consumer finance companies specialize in providing loans to individuals for personal use, which may include consumer goods, medical expenses, home improvements, or other needs. These companies typically operate with higher interest rates compared to traditional banks and credit unions, reflecting the increased risk associated with lending to consumers who may not have access to more favorable loans.

They aim to serve a segment of the market that might not qualify for conventional credit options. While payday lenders also lend money at high interest rates and are associated with short-term loans, consumer finance companies offer a broader range of financial services and products beyond just payday loans. This distinction is important because consumer finance companies are often more recognized in the context of various lending purposes compared to payday lenders, which focus primarily on brief, high-cost loans.