Top up your loan

About loans

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.

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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?

From Experian:
• Online at experian.co.uk
• By writing to Experian Ltd, Consumer Help Service, PO Box 8000, Nottingham NG80 7WE

From Callcredit:
• 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.

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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.

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Existing customers

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.

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Contact us

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.

We want to make sure that managing your finances is as straight-forward as possible. That’s why we have written some guides to help you both everyday or when things aren’t going quite as you’d planned.

Managing your money
Money worries
Bereavement
Redundancy
Caring for others
Divorce and separation

Contact us

Assessing applications for credit

To help determine 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.

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How credit scoring works

Credit scoring is used by most major financial organisations in the UK to help them decide whether to offer credit to a customer. All AA Loan applications go through a standard credit scoring process, which makes a decision based on a combination of the information you've provided, the loan provider's lending criteria and information obtained from both Credit Reference and Fraud Prevention Agencies.

Credit scoring works by taking all of this information and giving each relevant detail a value (or 'score'). When all the individual values have been added together a final score for your application is produced. If this score reaches a certain level, set internally by the loan provider, then an application for credit will usually be accepted. If your score does not reach this level, then an application for credit may be declined.

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Why credit scoring is used

Credit scoring is an automated process that allows each application to be assessed in an impartial and consistent manner, ensuring that all customers are treated fairly. It also helps a financial organisation to meet their legal and regulatory commitments as a responsible lender. Every application for credit includes a certain level of risk, no matter how reliable and responsible a customer is. Credit scoring allows financial organisations to understand the level of potential risk for each individual applicant, and if the risk is too high then an application will not be accepted.

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Why your application may be turned down

If your application is turned down it simply means that, based on the information available:

• Your overall credit score was not high enough to pass the required threshold, or
• There may be information held at the Credit Reference and/or Fraud Prevention Agencies which has been interpreted as negative, or
• Your application may not have met one or more of the specific application requirements. For example, you will not be provided with credit if your annual income (excluding unemployment benefits) is less than £12,000

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Appealing a decision

If your application is declined, you have the right to appeal the decision, although there is no guarantee that the outcome will change. You can request an appeal by calling Customer Services on 0345 266 0124 or by writing to us at the address below. You will generally be asked to provide additional relevant information to support your appeal, such as copies of bank statements.

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What you can do next

Loan applications can be declined regardless of what information is held by the Credit Reference and Fraud Prevention Agencies, and if you are unsuccessful in applying for an AA Loan it does not mean that you will be refused credit elsewhere as financial institutions make their decisions in different ways.

It is advisable to obtain a copy of your credit file before making any further applications (a fee may be charged for this service). The Credit Reference Agencies used for your AA Loan application were, Experian Ltd and Callcredit Check, and their contact details are below. CIFAS – the UK's Fraud Prevention Service – was used as the Fraud Prevention Agencyfor your application, and their contact details are also below.

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Contact us at:

AA Loans
PO Box 248,
Sheffield
S98 1QF

Contact Experian at:

Experian Ltd,
PO Box 8000,
Nottingham
NG80 7WE

www.experian.co.uk

Contact CIFAS at:

6th Floor Lynton House,
7-12 Tavistock Square
London
WC1H 9LT

www.cifas.org.uk

Contact Callcredit Check at:

Callcredit Check,
One Park Lane,
Leeds,
West Yorkshire
LS3 1EP

 www.callcredit.co.uk

About this information

This is key information that will help you understand our loan products. This information does not contain all of the information about the credit agreement you will enter into if you proceed with an AA Loan. You should read this document and all of the other information we provide to you carefully so that you can decide whether this product is right for your needs and circumstances.

If after reading this information you require further information or have any questions we encourage you to get in contact with us – ways of contacting us for further information are detailed at the end of this document, our website and other documentation we will provide to you.

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Deciding whether you should be borrowing money

There are some very important questions you need to answer before you borrow money. You should ask yourself if you need to spend the money, if you have other ways of financing the purchase and if you can afford to pay back the money you are planning to borrow. If you really do not need to spend the money today, then you should seriously consider saving some money each month rather than getting into debt. However, if you want to borrow money and pay back an amount every month, a personal loan is one option. If after reading this information you require further information or have any questions we encourage you to get into contact with us.

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What is a loan?

A loan is a legal agreement between a customer and a lender for the lender to lend an agreed amount of money over a pre-agreed term to the customer at a specified interest rate / APR. The customer is bound by the Loan Agreement to repay the loan by making specified regular repayments to the lender. AA Loans are unsecured loans. Unsecured loans are loans that are not secured against any asset such as your home.

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How can the loan be used?

A personal loan provides you with a lump sum which can be used to spread the cost of more expensive items, such as a home improvements or a new car, over a pre-agreed term. It is not suitable to fund day-to-day expenditure or for use as a deposit for other credit arrangements such as a deposit for a house.

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What are debt consolidation loans?

If you have got lots of different debts and you are struggling to keep up with repayments, you can merge these together into one AA Loan as a way of potentially lowering your monthly payments. With a consolidation loan you borrow enough money to pay off all your current debts and owe money to just one lender, which can make it easier by managing all debt in one place. Be careful though, as consolidation loans can lead to more debt. Debt consolidation only makes sense if you use it as an opportunity to cut your spending and get back on track, you can keep up the payments until the loan is repaid and you can afford to pay off any fees or charges to your old lender(s).

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Who can apply?

An AA Loan may be suitable for anyone:

• Aged 21 years or over
• With no County Court Judgments (CCJs) against them
• Who has been a UK resident for at least three years
• Who has a regular income above £12,000 a year
• Who has a UK based bank or building society account that can pay direct debits

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AA Loans – features

• You may be able to borrow more than with a credit card.
• Your personal loan repayments will be fixed amounts. That means you know your repayment amount is going to be the same every month, so it makes it easier to budget.
• You have flexibility in deciding how long you would like to take to repay the loan. Remember that the length of the loan will affect the amount you are charged in interest.
• You can consolidate several debts into one personal loan, potentially reducing your monthly repayment costs. But be careful, as this may mean that you could pay more charges or a higher interest rate and if you extend the length of the loan you could pay more overall.

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If you do decide you want to borrow money

It is very important to work out how much you can afford to repay each month, as this will affect which borrowing option is best for you. Make sure you are realistic about how much you could pay if your mortgage or rent went up, if you had to spend more on things like energy bills or if your pay was reduced. You should also make sure you choose the right type of credit or loan for your situation. Otherwise you could find yourself paying more than you need to. Shop around and compare deals, looking at:

• the interest rate (APR)
• the cost per month
• how much you will repay in total, and
• any penalties for missed or late payments

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How is the decision made as to whether to lend you money?

Before accepting you for a loan, information from Credit Reference Agencies is obtained and used to assess whether you can afford to repay the loan.

Credit Reference Agencies collect information about your financial dealings, including information about other borrowings and missed payments as well as County Court Judgments (CCJs) where applicable. This way they build up a financial picture of you and this is then shared with banks and building societies, with your permission, to help them decide whether to lend to you. Once you’re 18 or over, you can request your own credit report from any of the three Credit Reference Agencies for a small charge.

Each time you apply for credit, a ‘footprint’ is created on your credit file. While credit application footprints are not themselves negative, if you collect a lot of them over a short period it can be a cause for concern. This is because a rush of credit applications very close together can be a sign of fraud, or can indicate that you are experiencing financial difficulties. Therefore, applications should be spaced out where possible. If you are simply comparing the market and shopping around for the best deal, you should not submit a full application until you have made up your mind which is the best deal for you.

As part of deciding whether or not to lend you money, fraud prevention agencies are also consulted to ensure the person making the application is who they say they are i.e. someone else is not pretending to be you.

Any information you have provided is used to help with the decision, along with any information already held about you; information from enquiries made about you; and information we get from your dealings with us or our Group.

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AA Loans – keep in mind

Personal loans may have higher rates of interest than some other forms of borrowing, particularly if you want to borrow a smaller amount, such as £1,000.

Because the interest rate may reduce the more you borrow, you may be tempted to take out a bigger loan than you need and this should be avoided.

Before you sign the Loan Agreement you must read it carefully. If you are having difficulty understanding any part of the Loan Agreement, you should contact us on 0345 266 0124.

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Making payments

Repayments to your personal loan will be on a monthly basis by direct debit from your current account (or an account that accepts direct debits). The amount and number of repayments will be detailed in your Loan Agreement. Before signing the Loan Agreement, you should make sure you are comfortable that you will be able to make the monthly repayments and you are able to leave enough money in your account to do so.

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What interest rate will I be charged?

The interest 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. Details of your interest rate and repayments will be detailed on your Loan Agreement form and it is essential that you read this carefully before deciding whether or not to accept the terms of the Loan Agreement.

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How will I know how much I have to pay back?

Your Loan Agreement will state clearly the monthly repayment amounts, number and frequency. The date of your repayments will be communicated to you in your ‘Welcome letter’.

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Early repayment

You can repay all or part of the credit borrowed at any time. If you wish to do this, you can do so by contacting us on 0345 266 0124. This is outlined in the Loan Agreement. If you make a partial repayment, we will reduce the term of your Agreement unless you request otherwise.

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What happens if I were to miss a loan repayment?

If you fail to make your monthly payment when it is due it can affect your credit rating. This may have severe consequences on your ability to obtain future credit. It may make future credit more expensive or may result in legal proceedings including court action and associated costs against you. Failing to make your repayments will mean that you have broken the terms of the Loan Agreement and could result in us taking legal action against you which may include us obtaining a charging order against a property you own. It could lead to your having to pay additional costs and make it more difficult to obtain credit.

Full details of the consequence of missing a repayment are outlined in the Loan Agreement.

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Fees & charges

Any fees and charges applicable to your personal loan will be laid out in the Pre Contract Information and Loan Agreement form you will receive before you sign up to the credit. You should make sure you read this carefully and if you are unsure about anything, speak to us before you sign the Loan Agreement.

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If I change my mind, what is the AA Loan cooling-off period?

You will have a 14-day cooling-off period during which you can cancel your AA Loan Agreement. This will start from the date you sign your Loan Agreement or when you receive a copy of the agreement, whichever is later. If you cancel, you have up to 30 days to repay the capital and interest.

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If you have any further questions

Please call the contact centre on 0345 266 0124. We are open Monday to Saturday, 8am-8pm and Sunday, 9am – 5pm. Please note we are closed on bank holidays.

Your AA loan agreement explained

Your proposed AA Loan Agreement is regulated by the Financial Services and Markets Act 2000 and by the Consumer Credit Act 1974, (the “Acts”).

The Acts give you certain rights and protections. We are obliged to give you an adequate explanation of your proposed agreement and give you enough information so that you can make an informed choice about whether or not to go ahead with it.

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Pre – contract information

In addition to the information contained in this document, you will be provided with separate pre-contract information about your personal loan agreement. This contains detailed information about your proposed agreement, including how you can withdraw from it once the agreement is made.

If your pre–contract information is handed to you in person, then you can take it away and study it in your own time.

It is important that you read through the pre-contract information carefully.

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What you can use your loan for

A fixed rate personal loan provides you with a lump sum which can be used to spread the cost of more expensive items, such as home improvements or a new car, over a pre-agreed term. It should be used for mid to longer term borrowing needs, and is not suitable for certain purposes such as funding day-to-day expenditure or for use as a deposit for other credit arrangements.

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Making repayments

Under the terms of the Loan Agreement, you have to repay the loan which is made to you. We will charge you interest on the loan provided under your personal loan agreement.

You will repay the loan plus interest by making regular repayments to us. The repayment amounts will be calculated to make sure that by the end of the term of the loan agreement, the outstanding balance of the loan is reduced to zero, (provided that you keep up your repayments). The exact amount that you will have to pay will depend on the amount of the loan, the applicable rate of interest and the length of time you choose in which to pay off the loan.

Details of the amounts payable by you under the loan agreement, including the amounts and due dates for your repayments; the interest rate payable; the duration; and the total amount payable by you can be found in the loan agreement and also in the pre-contract information which will be provided to you. You should study this information carefully to make sure that you can afford the repayments and that the loan agreement is suitable for you.

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Missing repayments

If you do not make your repayments in the correct amounts and on the due dates under your loan agreement, then you could face serious consequences.

If you do not pay, you will incur default charges of £12 for each missed or unpaid repayment. We will also charge you interest at the interest rate shown in the loan agreement on any overdue amounts. We may send you a notice about these charges. This means that the amount outstanding under the loan agreement will continue to grow because interest amounts and default charges will be added to the outstanding balance.

We will also send you a default notice, requiring you to pay by a certain date. If you do not pay by the date specified in the default notice, then we can:

1. demand immediate payment in full of the outstanding balance under your loan agreement;
2. terminate the loan agreement;
3. enforce any security which we may hold for your obligations to us under the loan agreement; and/or
4. report your default to a credit reference agency.

If necessary, we can take legal proceedings against you to recover from you unpaid amounts under the loan agreement. We would also seek our legal and other costs from you. This could result in County Court Judgments being registered against you and may also result in a charging order (or an inhibition order in Scotland) being placed over a property which you own as security for the monies which you may owe us.

We would also be able to report your default to credit reference agencies. 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. This may make it difficult for you to obtain credit in the future.

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Your right to withdraw

You will have 14 calendar days from the day after you receive your acceptance letter to withdraw from your Agreement. If you wish to do so, you can notify us in writing or by calling Customer Services. You will be required to repay any amounts outstanding, including any interest due, within 30 days. Once you have settled the amounts outstanding, the Agreement will come to an end.

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Any questions

Finally, if for any reason you feel you don’t fully understand the AA Loan, we would encourage you to take time to consider your application carefully or discuss it with a family member or friend before committing. If you have any further questions about the AA Loan, please call Customer Services on 0345 266 0124 or refer to the FAQs which are available at theaa.com/loans.

Are you worried about being pressured into taking out a loan, due either to fraud or financial abuse?

Fraud scams can include people asking you to take out loans for investment opportunities or on their behalf.

Help is available on the Take Five website where the government and UK Finance have advice on how to protect yourself from fraud.

Or if you're being pressured into taking out a loan through coercion, manipulation or any form of abuse, the Money Advice Service has impartial advice for you.

Remember, only apply for a loan for your own use.

You're liable for any loan taken out in your name, even if you transfer the money to another person.

The terms and conditions apply to AA Loans. Please read these carefully and print for your reference.

Terms and conditions for AA Loans