high interest rate

USAGE SUMMARY

The phrase "high interest rate" is correct and usable in written English.
You can use it to refer to an interest rate that is significantly higher than average and applies to a loan or savings account. For example: "I'm looking to refinance my mortgage, but the high interest rate is not favorable for my situation."

✓ Grammatically correct

News & Media

Science

Wiki

Human-verified examples from authoritative sources

Exact Expressions

53 human-written examples

Company loans money, you pay back at high interest rate.

The New Yorker

The high interest rate also meant a strong Norwegian currency.

Encyclopedia Britannica

And they would demand a punitively high interest rate as a result.

The Guardian

A.I.G. had to pay a very high interest rate on the money it borrowed.

The New Yorker

Mr. Steuerman, heavily in debt, borrowed $500,000 at a high interest rate from Mr. Tankleff.

The New York Times

When Argentina does borrow money, it's often at a high interest rate.

The New Yorker

Human-verified similar examples from authoritative sources

Similar Expressions

6 human-written examples

We still have a relatively high interest-rate structure, although not much different from Australia's.

The Economist

–Pay down high-interest rate credit card debt.

Forbes

41%% of firm owners recommend declining high-interest rate.

Journal of Global Entrepreneurship Research

As we've discussed before, high-interest rate financing plans like the ones offered by Affirm can be a sticky situation.

TechCrunch

Help may finally be on the way for borrowers stuck in high-interest-rate mortgages.

The New York Times

Expert writing Tips

Best practice

When discussing financial planning, prioritize paying off debts that accumulate interest at a "high interest rate" first to minimize long-term costs.

Common error

Be careful not to assume that a "high interest rate" is always the cause of financial distress. While it can certainly contribute, it's often a symptom of underlying economic issues or risk factors.

Linguistic Context

The phrase "high interest rate" functions as a descriptor, modifying a noun (interest rate). As confirmed by Ludwig AI, it's used to characterize loans, savings accounts, or bonds where the interest charged or earned is notably above the average.

Expression frequency: Very common

Frequent in

News & Media

43%

Science

23%

Wiki

16%

Less common in

Formal & Business

7%

Encyclopedias

2%

Reference

0%

Ludwig's WRAP-UP

In summary, "high interest rate" is a common and grammatically sound phrase used to describe an interest rate that is significantly above average. Ludwig AI confirms its correct usage. Predominantly found in News & Media, Science, and Wiki contexts, it serves to inform and warn about financial implications. While authoritative sources consistently use the phrase, understanding its nuanced alternatives—such as "elevated interest rate" or "exorbitant interest rate"—can enhance precision in financial discussions. Prioritizing debts with a "high interest rate" is a key financial best practice. The analysis underscores the importance of not attributing financial distress solely to "high interest rates" as they often indicate underlying economic issues.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Elevated interest rate

Replaces "high" with "elevated", suggesting a formal tone and a significant level above the norm.

Above-average interest rate

Emphasizes the comparison to the average interest rate, clarifying that it's higher than typical rates.

Steep interest rate

Uses "steep" to describe the rate, implying a sharp increase or high degree of increase.

Exorbitant interest rate

Indicates an excessive or unreasonably high interest rate, often with a negative connotation.

Punitive interest rate

Suggests the rate is so high that it is like a punishment, typically applied to risky borrowers.

Unfavorable interest rate

Focuses on the borrower's perspective, highlighting that the rate is disadvantageous.

Costly interest rate

Highlights the expensive nature of the interest rate, emphasizing the financial burden it places on the borrower.

Expensive borrowing costs

Shifts the focus to the cost of borrowing, incorporating the interest rate as part of the overall expense.

Premium interest rate

Implies a higher rate due to added benefits or increased risk, potentially used in a marketing context.

Aggressive interest rate

Suggests the rate is set high intentionally to maximize profit or discourage borrowing.

FAQs

What does a "high interest rate" mean in finance?

A "high interest rate" signifies that borrowing money will be more expensive because a larger percentage of the principal must be repaid as interest. It often reflects higher risk for the lender or strong demand for loans.

When is a "high interest rate" justified?

A "high interest rate" might be justified for loans with higher risk, such as those to borrowers with poor credit or in unstable markets. It compensates lenders for the increased chance of default.

What are some alternatives to "high interest rate"?

You can use alternatives like "elevated interest rate", "above-average interest rate", or "exorbitant interest rate" depending on the specific context and nuance you want to convey.

How does a "high interest rate" affect loan repayments?

A "high interest rate" increases the total amount you'll pay back over the life of the loan, and it can significantly increase your monthly payment depending on the loan term and principal amount.