The AA (Automobile Association) is a London based company that was first started in 1905. When they started they had about 90 members that number has now grown to 15 million.

They offer loads of services from driving lessons to car maintenance to their drive into finance. With their different prospects, they strive to have to have the same values. They claim to have extremely reliable services that would always be to benefit the customer and put their needs as their priority.

They also offer guidance and advice about the finances to help the customer which can be trusted. They also want to keep making innovations that would make the customer’s life easier and better.

The company was set up by motorists who wanted to be treated fair and thus they always aspire to keep their rates fair. For their finances, including loans, insurance and savings. They want to be accessible to the common people to help them.

They act as a credit intermediary and brings their customers to the bank of Ireland who provides the loan.

How To Apply For An AA Loan

AA offers 3 types of loans, and you can choose whichever one fits your needs. They have a personal loan which can be for helping with any other debt you have, whether you need a vacation or any other need you might have. The car loan is pretty self- explanatory.

Car loan is if you need to buy a new or used car or if you need to fix up an old car. The third loan is home or home improvements loan which can be acquired for anything renovations you might want to make in your home.

Applying for a loan is simple as AA offer an online application on their website. It does not require any setup or arrangement fees which are added bonuses.

You will require a few things for the application itself, which include your employment status and the details of your salary, the shortcode and account number for your account and your previous home address along with your current (only if you have lived in your address for less than 3 years).

After filling out, the application AA offers an instant decision about your application, and this applies for all but special cases.  They have a standard representative APR ( annual percentage rate) of 3.0% which is pretty low and very good compared to other banks, and this is available on loans between £15,0001-£25000.

However, that is a minimum standard, and the rate is mostly dependent on your credit score and can change according to that and can go up to 49%.

How Long Can I Have The Loan For?

The loans can be taken for a minimum of 1 year up to 7 years although this time may vary on the amount of the loan being taken. The amount of loan can be anywhere from £1000 to £25000.

This can be affected by your personal circumstances and your credit score. If you are a member, AA gives its members lower loan rates (a member is a customer than applies directly to them and not through another bank or company or through a vehicle manufacturer partnership.

They also have fixed monthly payments, so you already know the amount you have to pay each month, and you won’t be taken aback by a large sum.

Application Process

After your application has been sent you either get an instant decision online on whether you got selected or not or they ask for extra information. They accept you on the basis on your credit score, which works by taking all your personal information and giving each relevant detail a score.

The individual values are then sent to them and together combined to give a better judgement. This method of deciding if you are eligible is also used by most other banks as well. You can get ahold of your credit score online on and

After your application has been accepted your agreement will be sent in the post by theaa. You will be required to check and confirm the details given, sign it and send it back to them so the funds can be transferred to your account.

At this point, you will also receive Terms and Conditions, Pre-Contractual Information (SECCI) and Important Information about your loan. It is better if you read them to really understand the process.

Eligibility To Apply

To be able to apply for the loans they offer you do need a to tick a few boxes on their checklist as well.

  • You need to be a resident of the United Kingdom for a minimum of 3 years.
  • You must be older than 21 to apply and no more than 70 when the loan completes.
  • You need to have a permanent job with a salary of at least £ 120000 to abr able to pay monthly payments. If you are self-employed, you should be able to prove that you have been employed for more than 2 years.
  • You also cannot have a county court judgement or have declared bankruptcy at any point.
  • You should have a good credit score
  • Have a UK based bank or a building society account that allows you to pay the debts directly.
  • Ensure that you can pay the payments as late payments come with a charge and failure to make those payments will deter any chance of you getting a loan again.


Help And Guidance

If you have any issues with completing the online loan application they have a number given on their website 0345 266 0124 for any assistance needed. There is a P.O box available if the need to write to them arises AA Loans, PO Box 248, Sheffield, S98 1QF.

Timings for their bank are Monday to Saturday, 8 am – 8 pm and Sunday, 9 am – 5 pm. Please note we are closed on bank holidays. Calls may be recorded for training and monitoring purposes.

When deciding to make to borrow money, you need to ask yourself important questions like, Is it worth getting into debt for? Will you be able to repay the debt? Is there any other way or route to obtain the money?

When choosing your loan, you should also decide what amount of money you can easily pay each month. You must think about it realistically about the amount you can pay.

You should decide the different deals offered by comparing the interest rate (APR), the cost per month, how much you will repay in total, and any penalties for missed or late payments to find the one best suited for you.


  • No setup or arrangement fees
  • Quick and easy online application
  • Instant decision almost always. If not then 5 days max.
  • The money will be given to you in 2 working days.
  • Have a set monthly payment
  • Flexible payments, make additional payment without charge.
  • Support provided. During application and after.
  • Representative 3.0 % APR
  • Exclusive lower rate of loans for members
  • Lets you change your mind about the loan till 14 days after the acceptance
  • Reconsidering your loan application after you have been rejected.



  • You can’t be late on repayments
  • Reconsideration cannot guarantee acceptance
  • Accept good credit scores
  • Does not allow a payment break.


Missing Payments

You should always try and make your payments before the due date for your loans, the failure of payment could have serious consequences.

A charge of £12 will be added to your payment for every missed repayment. Interest will also be added to this amount. The interest rate is stated in the loan agreement for the overdue payments. A notice will be sent to inform you about the added charges. The outstanding amount thus will continue to grow as the interest, and the actual amount will keep on adding.

They will also send you legal notice to pay the outstanding dies by the due date. Failure to pay those dues as well can cause them to demand immediate payment in full of the outstanding balance under your loan agreement, terminate the loan agreement, and enforce any means of security they see fit to hold you against your loan agreement or report you to a credit default agency.

In dire circumstances, they can seek legal actions and go to court to get their outstanding dues. The report to default credit agency will also mean your default would be recorded on your credit reference file and could be viewed by other lenders and agency users who search your credit reference file.

Additional Info

After you have received your loan, the first payment will be due 1 month after the initial loan has been taken. E.g. you received your loan on the 13th you will have you pay the first payment the next month of the 13th.

The date will be mentioned to you on the welcome letter you will receive by post in case you forget what date you get the loan on. The date is important as a late payment can entail an extra charge. If the date you are meant to pay on falls on the weekend or on a holiday the payment due date will automatically be applied on the next business day.

If you wish you can also change the date you make the payments to make it easier and convenient for yourself; however, you can only do so after you have already made your first payment and can only be done once a year.

Along with that personal details can also be changed by a simple call on the number 0345 266 0124. If you happen to make an early payment or make a partial payment, the term of the agreement will automatically be reduced. Unless you request otherwise. You can also call the number to find you outstanding loan balance or call the number if you want your loan documentation.

They can provide the documentation in the form of braille, large print, or audio for someone with disabilities or just your preference. All you have to do is call the number and request the documentation in the format you desire.

Overall Verdict

While your credit determines mainly how much APR you get. The AA offers a lot of features that other banks may not be able to deliver on. And your credit score does allow you can get the APR of 3% which is lower than you can get by any bank in comparison. If you are a member, you can get even lower rates, which is a huge bonus.

Their offer of flexible payments is great as well since at any time during your loan agreement you can give partial payments which allow the customer to get lower interest rates later on during the payments.

A lot of flexibility and leverage on your payment plan allowing you to choose the date of your choice as well, trying to give you as much leverage as possible, even allowing you 14 days before getting the loan to change your mind and reconsider your options to get the best one.

If you are rejected by the team, you can even send them a letter or call them to get them to reconsider your application although they don’t give any guarantee they do allow for more information and ask for further documents to give you a better chance of getting accepted.






Company Details
  • Registration Number: 00912211
  • Incorporation Date: 1967-08-02
  • Status: Active
Contact AA Loans
  • via Phone: 08000 850 444 Call
  • via Post: Fanum House, Basing View, Basingstoke, Hampshire, RG21 4EA