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How do AA loans compare against the competition?
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 are provided by the Bank of Ireland UK, and AA Financial Services Ltd is a credit broker and not a direct lender.
You can apply for a personal loan through the AA’s website, and in most cases you get an instant decision. Anybody can apply, but members of the AA may be eligible for exclusive rates. Bear in mind that an “AA Breakdown Member” is defined as a customer that arranged cover directly with the AA (so if you receive AA breakdown cover as part of a bank or vehicle manufacturer partnership programme, you won’t be eligible).
Key features of an AA personal loan at a glance
AA personal loans are available over periods between 1 and 7 years (in 6-month increments), and you can apply for any amount between £1,000 and £25,000 (in £100 increments). The rate you are offered will depend on factors like your credit rating and income, but you can get an idea by using our loans comparison tables or the AA’s loans calculator on the AA site.
- Loan terms of 1-7 years. Note that the minimum and maximum terms do vary depending on the value of the loan.
- Loan amounts of £1,000-£25,000. As above, the amounts available will depend on the term of the loan (as well as your personal circumstances).
- Fast application and turnaround. An instant decision will be made in most cases, and money can be in your account within 2 days.
- Fixed monthly repayments. The amount you pay will be fixed every month, so there are no surprises.
- No early repayment charges. If you find yourself able to pay off some (or all) of your loan early – there are no charges.
- Exclusive lower loan rates for members. If you’re a direct AA customer (not through a bank or vehicle manufacturer scheme) you could get exclusive lower rates on your loan.
- No arrangement or set-up fees.
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.
Am I eligible for an AA personal loan?
You don’t have to be an AA member to apply, but you do 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
How do I apply?
If you’ve decided that an AA personal loan is right for you, you’ll need to provide proof of the following:
Then simply fill in the application form via their website. You’ll also need the sort code and account number of your bank or building society account.
Frequently asked questions
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