RAC Loans Feature:
- Borrow from £2,500 to 25,000
- Repayment terms of 2 to 5 years
- Potential benefits for RAC members who apply
- Online application
- Instant decision
- Funds could be paid next working day
- Provided by Hitachi Capital
To be eligible for an RAC loan you must:
- Be aged 18 years or over
- Have been a permanent UK resident for a minimum of 12 months
- Have a good credit history
- Be in permanent paid employment, self-employed or be retired with a pension.
RAC loan calculator
If you think an RAC loan could be the right choice for you, you may wish to use the RAC loan calculator. You just need to enter on the slider tools how much you wish to borrow and how long you would like the repayment term to be. The RAC loan calculator will then give you an estimate based on the lender’s Representative Annual Percentage rate for a loan of that size.
Remember however that you are not guaranteed to get the APR that the calculator used. If you decide to apply for a loan and you are accepted a lender may tailor the specific APR they are willing to offer a borrower following an assessment of their financial circumstances such as; their credit history, how much they earn and any already existing credit commitments.
Before you apply
There are diverse range of loans available on the market from different lenders, shopping around before you take out a loan therefore is a good idea, think about what loan features are most important to your specific needs when looking. You can use the above comparison tables to look at loans from various lenders at the same time.
As well as shopping around beforehand you may also want to take into consideration alternatives to borrowing. For example if you already have the required funds in your savings it may be better to use them instead. This is because you might find that the interest you earn from your savings are less than the interest you could be charged on a loan of the same size.
There are also other types of borrowing than loans such as authorised overdrafts and credit cards you might want to think about.
If the reason you want a loan is to consolidate already existing debt then you should understand that by spreading your payments over a longer term you may ultimately be paying back more than you would if you stayed with your current arrangements, even if the interest rates on the new loan are less than what you are currently paying.