Credit card Directory

The AA credit card

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CreditChoices.co.uk is an affiliate of The AA. Having branched out; The AA (www.theaa.com) is no longer just the UK’s biggest breakdown organisation, it now offers journey planning advice, insurance and even has its own credit card.

The AA credit card offers nine month’s interest free on balance transfers as well as two rewards schemes; one where your points – earned by spending on your card – can be redeemed on AA products such as their breakdown cover or driving lessons, the other where your points can be exchanged for cash – up to £75 a year.

What you should know

Always read the terms and conditions before taking out a credit card or loan or before signing any contractual agreement.

• A three per cent (minimum £3) charge is levied on all balance transfers. This means that to get nine month’s interest free on a balance transfer of £3,000 would cost you £90.
• Their APR is variable at 15.9 per cent, but this rises to 21.9 per cent for cheques and 22.9 per cent for cash advances.
• You can earn double points on fuel by using your AA card at petrol stations.

Anything else?

Don’t sign up just for the points unless you can guarantee that you will always pay your balance off in full each month. As soon as you start to pay interest on your card any benefits you receive and points you gain will be massively overshadowed by the money you’re paying out in interest.

If you have a substantial balance that you want to transfer you should consider going for a card with a low life-of-balance APR because once your nine month’s are up you’ll start paying out at 15.9 per cent.

However, if your finances are in good health and you already pay for AA products, this could be the right choice for you.

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