AA loan gets 4 stars after rate reduction | Product News - Moneyfacts

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AA loan gets 4 stars after rate reduction

AA loan gets 4 stars after rate reduction

Category: Loans
Date: 06/01/2015

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

AA has made several changes to its personal loan, including a rate reduction to its £7,500 to £15,000 tier, which has enabled it to move up the Moneyfacts charts.

The basics…

An AA Loan of £7,500 to £15,000 now has a competitive rate of 4.1% APR over a term of 18 months to five years, pushing the loan above more rivals in its sector.

Meanwhile, a new loan amount of £1,000 to £2,999 is also available. This loan has a rate of 19.9% APR over a term of one to five years. A loan of £3,000 to £4,999 has an APR of 11.9% over the same term, while a loan of £5,000 to £7,499 has a rate of 5.9% APR over 18 months to five years. The largest loan amount, of £15,001 to £25,000, has an APR of 5.8% over a term of 18 months to five years.

The finer details…

Example monthly repayments of an AA Loan: £5,000 over three years = £151.53.

All applicants for this loan must be at least 23 years old. Applications can be made by phone or online.

New customers to AA can benefit from free AA roadside vehicle breakdown cover for a year when taking out a loan. Existing customers receive a half price upgrade to their existing cover.

Borrowers should remember that all rates depend upon their credit rating, loan amount and the term chosen.

Why we like it…

The rate decrease to the £7,500 to £15,000 tier has boosted the competitiveness of this loan, something that is sure to be noted by borrowers. The appeal of this loan is boosted further with the offer of either free breakdown cover for a year for new customers or a half price upgrade for existing customers.

Four Moneyfacts Stars have been awarded.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
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