What's an APR?
APR is the Annual Percentage Rate (APR) and is used to describe the overall cost of money borrowed. It takes into account the interest rate, when it is charged (daily, weekly, monthly or annually), any fees charged when setting up the loan and any other costs applicable to the loan. The APR makes it easy to compare different loan products across the market.
What's a representative APR?
The representative APR is an APR at or below which an advertiser reasonably expects most people who apply for this product will get.
Will I receive the advertised APR?
The APR you receive may vary from the advertised rate. This is the representative rate which we expect most people who apply to get.
The rate you are offered will be a personalised rate based on your current individual circumstances including credit information held about you by the credit reference agencies, the loan amount you borrow and length of time you borrow for.
Applying for an AA Loan
How do I apply?
You can apply online and will get an instant decision in most cases.
Who can apply?
To be eligible to apply you must:
- Have been a UK resident for at least 3 years
- Be over 21 and no older than 70 when the loan term ends
- Be employed with a salary of £12,000 or over
- Not have a history of County Court Judgments or bankruptcy
- Have a UK based bank or building society account that can pay direct debits
How much can I borrow?
From £1,000 to £25,000 in £100 increments.
How long can I take a loan for?
Loans are available between 1 and 7 years (depending on the value of your loan).
Can you tell me how much a loan will cost without having to provide my personal details?
We offer a personalised price which is based on your individual circumstances and amount you wish to borrow and it is therefore necessary to capture your personal details. Please note that we do not offer an indicative quotation. If you proceed and submit an application, a credit search will be registered at the Credit Reference Agencies.
Can I use this loan to pay off other debts?
Yes, in the right circumstances debt consolidation can be beneficial and help you manage your debt. If you have all your debts in one place, it means that you only have to track one interest rate and one payment to make each month.
However, before applying for a loan you should review your options to make sure that the loan which you are considering is right for you. For example, compare the rates of interest between your current loan or credit card providers and your proposed AA Loan and consider how long the loans are for.
In some circumstances taking out a loan to manage your finances could mean you end up paying a higher rate of interest and/or it may take longer for you to pay the money back.
I'm not sure if an AA Loan is right for me, what do I do?
Take the time you need to consider all of the information you are provided with so that you are sure the product is right for you before you commit.
See Borrowing with an AA Loan on this page for more information. Perhaps, discuss it with a family member or friend. If you're still unsure about how to make an application or what will happen next, call us on 0345 266 0124.
Can I change my mind about taking out a loan?
Yes. You have 14 calendar days from the day after you receive your acceptance letter to withdraw from your Agreement. If you decide you don't want a loan from us, just call 0345 266 0124 within this 14 day period. Or you can write to us at AA Loans, PO Box 248, Sheffield S98 1QF.
When will I know if I have been accepted for the loan?
In most cases you will get an instant decision online. In some cases we may require additional information or evidence of documentation, if this is the case we will be in touch with you by post within 5 days.
What can I do if my loan application is declined and I don't agree?
If you're unhappy with the decision, you can ask us to reconsider by calling 0345 266 0124. Or you can write to us at AA Loans, PO Box 248, Sheffield S98 1QF.
You should be aware that we cannot give any guarantees that our original decision will be changed. To support your appeal you will need to provide us with any additional relevant information which was not given to us when you first made your application.
What is credit scoring and how does it work?
To help understand whether to provide you with credit and to ensure responsible lending, your personal circumstances are taken into account.
To do this, each application is assessed using a system called credit scoring. All AA Loan applications go through a standard credit scoring process, which works by taking all of your personal information and giving each relevant detail a score. These individual values are then added together to provide a final score which provides the basis for our decision.
This is a system we use to help us decide whether we can lend you money and is also used by most other banks. Please refer to Our decision explained for more information.
How do I get a copy of my credit report?
- Online at experian.co.uk
- By writing to Experian Ltd, Consumer Help Service, PO Box 8000, Nottingham NG80 7WE
- Online at callcredit.co.uk
- By writing to Callcredit, One Park Lane, Leeds, West Yorkshire LS3 1EP
Please note, these agencies will charge you for this service.
What happens after my application has been approved?
We will send your agreement out by post. You will need to check all the details, sign the agreement and return it to us by post in order for us to transfer the funds to your account. You will also be sent a copy of our Terms and Conditions, Pre Contractual Information (SECCI) and Important Information about your loan.
It is important that you read and understand the information contained within these documents. Please contact us if there is anything that you do not understand.
How soon will I get the money?
We aim for the money to be in your bank or building society within 2 working days once we have received your signed agreement.
Once you have your loan
When do I need to make my first loan repayment?
Your first loan repayment will be one calendar month from the date the loan is released to you. You will see the date on your Welcome Letter. If this day falls on a bank holiday or weekend, the repayment will be made on the next business day.
Can I change the date my repayments are made?
Yes. To change your repayment date simply call us on 0345 266 0124, after you have made your first repayment, and let us know which day of the month is best for you. Repayment date changes are limited to one per calendar year.
How do I make my monthly repayments?
We require you to make your monthly repayments by direct debit, unless we agree otherwise. Your direct debit will be set up from the bank/building society you have chosen during your application.
If you want to change the bank account from which your repayments are paid, call us on 0345 266 0124.
What if I can't make my monthly repayment?
If you're struggling to keep up with the repayments on your loan for whatever reason, we're here to help. It is important that you call us to talk you through the options available.
If you're in arrears and can't make your contractual payments, please call:
0800 032 8180
Lines are open Monday to Friday 8am to 8pm, Saturday 9am to 1:30pm.
There are lots of organisations that can provide confidential, impartial and free help and advice. For more information check out are you in financial difficulties?
If you are already in touch with an organisation that is giving you financial advice, please let us know and we can deal with them directly.
Can I take a payment break?
No, the AA Loan doesn't come with a payment break option.
If you're struggling to keep up with the repayments on your loan, we are here to help. Call us on 0345 266 0124. Alternatively, there are lots of organisations that can provide confidential, impartial and free help and advice. For more information check out are you in financial difficulties?
What should I do if I need to change my personal details?
If you need to change any of your personal details, please call us on 0345 266 0124.
Can I pay my loan off early?
You can settle your agreement early – in full or in part – at any time. It's known as an Early Settlement, and you can download more information here.
If you want a full Early Settlement to pay off your loan you'll need to request a settlement quotation by calling us on 0345 266 0124, or writing to us at AA Loans, PO Box 248, Sheffield S98 1QF.
To make a partial Early Settlement you can call us to make a debit card payment. As a result of any repayment we reduce the term of your agreement unless you request otherwise.
If you do want an Early Settlement, this may incur a payment of up to 58 days’ interest.
How do I find out my outstanding loan balance?
If you want to find out the outstanding balance of your loan account, simply call us on 0345 266 0124.
What format can I receive my loan documentation in?
We can provide documentation in braille, large print or audio on request. If you require documentation in any of these formats, please call us on 0345 266 0124. Or you can write to us at AA Loans, PO Box 248, Sheffield S98 1QF.
How can I contact you?
If you have an AA Loan and need to contact us please refer to our existing customers page.
Can I borrow more money and add it to my loan?
Unfortunately, we can't add additional funds to an existing loan. If you want to borrow more money you'll have to settle your existing loan and reapply for additional borrowing, known as a top up loan.
If you need more help, please call us on 0345 266 0124.
Can I change my mind if I take out a top up loan?
You have a 14-day cooling-off period from the date you sign your AA Top Up Loan Agreement or when you receive a copy of the agreement, whichever is later. During the cooling-off period you can cancel your loan.
If you do change your mind and decide to cancel, you've up to 30 days to repay the the capital and interest of your new top up loan. Your previous loan can't be reinstated.
How can I contact you about my application or loan?
You can contact us to discuss any queries you have about your loan on 0345 266 0124. We're open Monday to Saturday 8am to 8pm, Sunday 9am to 5pm. Closed on bank holidays. Calls may be recorded for training and monitoring purposes.
Or you can write to us at AA Loans, PO Box 248, Sheffield S98 1QF.