Identification

• The AA provides personal and small loans along with credit cards to organization members. If you're comparing the rates at the AA relative to those at other banks and financial companies, you should factor in the membership cost unless you are already a part of the AA. While the loan rates are good and the credit rewards are competitive, the advantages are quickly erased if you would not have picked up a membership with them already.
  
  

Function

• Some of the advantages of taking out a member loan with the AA include a voucher for a 9 month warranty on most cars under 10 years old. You also get three months off before having to make a payment, and are automatically enrolled in the AA Creditcare loan insurance program that covers your repayments in case of a personal catastrophe such as job loss, unemployment or severe illness.
  
  

Types

• The loans available from AA come in four categories: car, personal, short term and credit. All of them have some impressive advantages over many of their competitors, in part because the AA takes strength from its other businesses providing insurance and other help to its members. The personal loans benefit from low rates, repayment holiday and others. The short term loans have impressively low rates relative to many of the other options on the market, at approximately 9% for loans under £9,000. The credit cards have great benefits like 0% rates for the first six months and 0% for 9 months with balance transfers.
  
  

Benefits

• Joining AA gets you lower rates on loans and a higher chance of being approved. Membership benefits include 24/7 roadside assistance in case of breakdown and lower rates on AA insurance. The only issue with this is that joining AA will make it less worthwhile for you to shop for insurance and loans - and after all, you may never end up needing their emergency services. Protecting against emergencies, however, is one of the most sensible things you can do to protect your personal wealth. It's not pleasant to be caught with a broken down car in the middle of the country - you could be gouged by a local mechanic.
  
  

Considerations

• Of course, if you are joining AA just because you like the loan or credit card rates, you should compare it to other options at a site like UK Money Supermarket, linked below in the references. Add the annual AA member fee and see if that added to the loan rate still makes it preferable to other loans on the market. This takes a little time, but it could end up saving you substantial amounts of money if you don't really spend much time in your car.