The range of financial services and products available from RAC includes two types of unsecured lending: the Personal RAC loan, which available for almost any purpose, and the Car RAC loan which comes with a free RAC vehicle examination. Both of these RAC loans are available for amounts between £2,000 and £25,000 over periods of 1 to 7 years. Both the RAC loan products are advertised at a typical APR of 7.90%.
As the RAC loans are unsecured, you are able to borrow without the need to provide collateral. This means that you need not risk your home with an RAC loan; however, it also means that only applicants with near perfect credit ratings will be eligible for the low advertised interest rates. Your RAC loan application will be subject to a credit check in order to assess the level of risk associated with lending to you. If your credit rating is low, the risk will be deemed high, which may result in higher interest rates being offered on an RAC loan – or you may be declined altogether. As a result, you may find that an unsecured RAC loan does not offer an affordable borrowing solution.
For a secured loan quote to compare your RAC loan options against, complete the form on this page. Totally Money will connect you with an independent expert for a thorough analysis of your personal requirements and a personalised quote to enable you to make an informed decision on whether an RAC loan is your most affordable borrowing option.