Founded in 1905, the history of the Automobile Association is nearly as long as the history of motoring in Britain. But the AA isn’t just there to lend a hand if your car breaks down – it also offers financial services, including a personal loan at competitive rates, especially if you’re an AA member.
The AA offers its loans in partnership with the Bank of Ireland UK, making it a broker not a lender, but the terms it offers are very competitive, and as an old and established brand, it is a very safe bet for your borrowing needs.
So, could a loan from the AA be right for your needs? Here’s everything you need to know about the loans they offer.
The AA offers fixed-rate, unsecured personal loans which can be used for a variety of reasons. Buying a car is the obvious one, but its loans are also available to fund home improvements and weddings.
AA loans come with the following features:
You should also be aware that the AA’s financial services arm acts as a credit broker and won’t be your direct lender. All AA loans are provided by the Bank of Ireland UK.
What determines my APR?
When you take out a loan with the AA, your interest rates will depend on three factors: your credit history, which you can check for free with MoneySuperMarket’s free Credit Monitor tool, as well as the size of the loan you want to take out and your AA membership status.
In general, representative APRs are higher if you want to borrow a smaller amount – but in every band, the representative APRs for AA members are lower by 0.1%. So, for instance, if you’re borrowing £7,000 for seven years, AA members could save around £26 on their repayments.
However, this only applies if you’re a direct AA customer, and not if you have your membership through your bank or vehicle manufacturer.
Every loan taken out with the AA comes with one year of the AA’s basic breakdown cover, completely free. If you’re already an AA member, you can choose a free add-on to your coverage – one of either National Recovery, At Home, or Onward Travel. The free add-on lasts until the end of your current membership year.
Yes – and there are no fees for overpaying.
The AA has some eligibility criteria you’ll need to meet before you’re approved for a loan. Most importantly, you’re more likely to be accepted if you have a history of good credit – and your interest rates should be lower too.
Besides having a good credit score, you should also be able to meet the following criteria:
You can find a loan deal that’s personalised to your circumstances when you compare your options on MoneySuperMarket. Just give us a few details about what you want from your loan, including what it’s for and how much you need, and we’ll do the rest.
You can compare deals by their APR, any fees or charges, and the likelihood you will be accepted. As soon as you’ve found the loan you want, simply click through to the provider’s website to finalise your application.