AA is a broker offering fixed monthly repayments on its loans, as well as the flexibility to make additional payments. While the lowest rates are for existing customers only, competitive rates are still available - granted you have a good credit score. If you did want to repay your loan early to reduce the amount of interest you’ll pay overall, you may be charged an early repayment fee.
Best for: No set-up fees
Pros
Fixed monthly repayments
Instant decisions available for most applications
Early repayments allowed
New AA members can get 12 months’ free basic breakdown cover
Cons
Lowest rates available for existing customers only
Fee may be applied if you pay off early
You’ll need good credit for low rates
Representative example: Borrow £10,000.00 over 3 years at a rate of 6.1% p.a. (fixed). Representative APR 6.1% and total payable £10,941.12 in monthly repayments of £303.92.
Maximum loan
£40,000
Product fee
N/A
Early redemption fee
Yes
How do AA loans compare against the competition?
Table: sorted by representative APR, promoted deals first
Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
What is the AA?
In case by some miracle you haven’t heard of it, the Automobile Association (AA) is a British institution, having provided assistance to its members since 1905. In addition to breakdown cover and driving lessons, the AA now also provides financial services including insurance, savings and personal loans.
AA loans were provided by the Bank of Ireland UK, and AA Financial Services Ltd is a credit broker and not a direct lender.
Quick overview of AA personal loans
Loan amount not specified
Loan terms
From year to years
Age eligibility
Age eligibility not specified
Application fee
No application fee
Repayment holiday
Repayment holiday not permitted
Key features of an AA personal loan
AA personal loans were available over periods between 1 and 7 years (in 6-month increments), and you could apply for any amount between £1,000 and £25,000 (in £100 increments). The rate you were offered depended on factors like your credit rating and income, but you can get an idea of the best rates by using our loan comparison table.
What is APR?
If you’re comparing any credit-based products, it won’t be long before you’ll come across the annual percentage rate (APR). This figure is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan.
All lenders must calculate the APR of their products in the same way, and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison.
Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.
Was I eligible for an AA personal loan?
You don’t have to be an AA member to apply, but you did need to meet the following criteria:
Have been a UK resident for at least 3 years.
Be over 21 and no older than 70 when the loan term ends.
Have a regular income above £12,000 a year. If self-employed, you must have been so for over 2 years.
Have a good credit rating without a history of County Court Judgment or bankruptcy.
Have a UK based bank or building society account that can pay direct debits.
Ensure that you can meet the repayments as missed payments incur a charge and could have severe consequences on your ability to obtain future credit
Pros and cons
Pros
Fixed monthly repayments
Make extra payments
Instant decisions available for most applications
Monthly repayment dates can be amended (once a year)
No arrangement or set-up fees
Early repayments allowed
New AA members can get 12 months’ free basic breakdown cover
Current AA members can access lower rates
Cons
Lowest rates available for existing customers only
Fee may be applied if you pay off early
You’ll need good credit for low rates
AA customer reviews
In our 2023 customer satisfaction survey, AA scored 4.5 out of 5 stars with 83% of its customers saying they’d recommend the brand to a friend.
Customers in our survey commented on AA’s “great service”. One commented: “Easy to use and helpful staff”. However, some customers felt AA’s “communications” could be better.
How do I contact AA customer services?
You can the AA customer service team on 0345 266 0124. Lines are open Monday to Friday 8am to 7pm and on Saturday 8am to 2pm.
Our verdict
AA was a broker offering fixed monthly repayments on its loans, as well as the flexibility to make additional payments. While the lowest rates are for existing customers only, competitive rates are still available – granted you have a good credit score. If you did want to repay your loan early to reduce the amount of interest you’ll pay overall, you may be charged an early repayment fee.
Frequently asked questions
No. You don’t have to be an AA member to apply, but AA members could be eligible for exclusive rates.
In this instance, the AA is acting as a credit broker and not a direct lender. The loans are provided by the Bank of Ireland UK.
AA take a strict but fair approach to lending. They only accept borrowers with a healthy credit history, so if you have some missed payments on your credit file, this is not the lender for you.
No, an AA Loan doesn’t come with a payment break option. However if you’re struggling to keep up with the repayments on your AA loan it’s important to contact the AA as soon as possible to talk through the options available. Call 0345 266 0124. There are lots of organisations that can provide confidential, impartial and free help and advice – for example, the MoneyHelper (formerly the Money Advice Service).
Yes! You can settle your agreement early in full or in part, at any time, and there’s no fee to do this.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more.
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