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AA Loan

The AA loan isn't the best value out there, but is competitive at higher rates, and is of course from a trusted brand. You can borrow from £1,000 to £25,000 and the payment protection insurance scheme is among the best in the market.

AA Loan examples (correct at publication date, uninsured):

  Monthly Repayment APR
£3000 across 2 years £138.98 10.9%
£5000 across 5 years £98.94 7.2%
£10000 across 7 years £150.79 7.2%

Let's begin with the rates. The cheapest AA Loan rate of 6.7% is reserved for people borrowing over £20,000 (typical rate for £5,000 is 7.2%). Now considering that the supermarkets will offer you 6.9% for borrowing only £5,000; this is an expensive loan.

On the plus side, unlike some providers, rates don't depend on the length of term- whether you borrow for one year or the maximum 7 years, the quoted APR won't change. Payment protection is also available using "AA Creditcare"; and whilst we wouldn't recommend basing your decision on the insurance policy alone, it's a very good policy. The extra premium isn't too expensive, and if you claim, benefits begin after only 15 days sickness (with most policies it's a whole month).

You can opt for a courier service to get the money from your AA loan immediately- but that's £45, which compares badly with other providers, and is also subject to change (so if you live out in the country, expect to be stung twice!)

Provided it's for leisure purposes (redecorating, going on holiday etc.) there's no restriction on using the money you get from your AA loan; and there are no arrangement fees. If you're consolidating payments, the AA loan site responsibly has a budget calculator and "How much can I afford" sections.

The AA loan deal seems to be best at the higher values, so before signing up, you really need to ask how it compares with, say, getting a remortgage. If you like the fact that it's unsecured and at a fixed rate, then this might be a good buy.