The AA Credit Card

The AA credit card review

RUNNING a car can be an expensive business but you can use AA rewards to save on everything you need - from petrol to parts - with the AA credit card.

It's not just car fanatics that'll benefit, though. The AA credit card includes long interest-free deals on both purchases and balance transfers.

The 0% on purchases deal lasts for the first 10 months and the 0% balance transfer rate for the first year.

That 0% purchases rate will come in handy for collecting reward points since you'll be able to use the AA credit card for big spends and spread the cost interest-free.

Motoring spending earns double points and AA members get more rewards again. Note that even if you're not an AA member at the moment you can become one, and start earning extra points, at any time.

Motoring spending includes parts, repairs, servicing, MOT testing, diesel, petrol and LPG autogas fuels.

AA reward points can be exchanged for AA products including breakdown cover and shopping vouchers.

An AA credit card reward point is equal to around a penny which is similar to other credit card reward schemes and, though it may not sound like much, the points can add up quickly.

Finally, the AA credit card is an MBNA card with MBNA cardholder services including fraud protection and online account management.

Interest Rates and Fees
		Notes..
Typical APR	16.9% APR (variable)	The typical APR is the rate most people are offered.
Introductory Purchases	0% for 10 months
Balance Transfers	0% for 12 months Includes transfers to a current account (4% fee)	Must be made within 90 days of account opening to qualify. Also includes money transfers to a current account, but with a 4% handling fee. Payments are applied towards 0% purchases before 0% balance transfers, but when the 0% purchase period ends payments will be applied towards 0% balance transfers before standard rate purchases. After the 0% balance transfer period ends, balance transfers are charged at the standard rate of 18.9% p.a. and money transfers are charged at the standard rate of 20.9% p.a.
Balance Transfer Fee	3% (£3 minimum)	This fee applies to balance transfers. Money transfers will be charged a 4% fee.
Cash Withdrawal Rate	27.9% p.a. (variable)	-
Cash Withdrawal Fee	3% (£3 minimum)	-
Annual Fee	None	-
Foreign Transaction Fee	2.99%	This fee will be charged if you make a purchase or cash withdrawal in a foreign currency.

Rewards
		Notes..
Reward #1	AA Motoring Reward Points	Earn AA Reward points on your spending: - 1 AA point for every £2 spent on purchases - 1 AA point for every £1 spent on motoring purchases. Motoring purchases are considered to be: - Purchases made from any car garage (e.g. parts, repairs, servicing or MOT testing) - Diesel, petrol or LPG Autogas purchased from any petrol station (including supermarkets) - AA products are defined as any AA products or services advertised on theaa.com website, excluding AA Gateways. AA points are redeemable for: - AA Breakdown Cover - AA Home or Car Insurance and other AA products - Offers from selected AA Members Club partners - Motoring and travel essentials (from Sat Navs to suitcases and more) - Treats (wine, days out or high street vouchers) - Cash back. AA point value varies between redemption items.
Reward #2	Double AA Reward Points for AA Members	You must have AA Breakdown Cover to receive double AA Reward points. You can provide your AA Membership number during the application process, OR if you become an AA Member at a later date, you can upgrade your card at any time.

Cardholder Services & Extras
Online Account Management		You can log in to a website and manage your The AA credit card account online. Optional paperless statements are available.
Fraud Guarantee		You will not be held liable for fraudulent transactions online or on the high street, providing you tell the card issuer (MBNA) as soon as you cannot find your card or you notice any unusual transactions on your account.
Fraud Monitoring		The card issuer (MBNA) will monitor your account for any unusual activity and notify you if they suspect any transactions could be fraudulent
Identity Protection
Verified by Visa		An extra layer of security when shopping online. Register and set up a password-protected identity-check when you shop online with participating online retailers.
Purchase Protection Insurance
Purchase Delivery Insurance
Comprehensive Travel Insurance
Travel Accident Insurance
Travel Inconvenience Insurance
Assistance Abroad
Emergency Card Replacement
Other Extras	- 24 hour UK based customer service.
Optional Extras	These are extras that you can choose, but you will have to pay for them. - Payment Protection.

Payments & Payment Details
		Notes..
Credit Limit	£1,500 assumed	Credit limit subject to status.
Interest Free Period	Up to 50 days	For purchases if you pay your statement balance in full and on time every month. There is no interest free period for balance transfers, cheques, money transfers or cash advances - except for those within an interest free promotional offer.
Minimum Monthly Payment	1% (£25 minimum)	If your balance is less than £25 you must repay your balance in full. Otherwise, you must repay the greater of: - £25, OR - 1% of your statement balance before any default charges and interest, plus any default charges and interest on the statement.
Allocation of Payments	Low interest rate balances » Higher interest rate balances	Where there are two or more balances at the same promotional rate they will repaid in the following order: - The one which expires first, Then - If the expiry dates are the same - the one which started first, Then - If the expiry and start dates are the same - the one with the lowest standard rate.
Default Charges	£12	This is how much you will be charged for late payments, returned payments and if you go over your credit limit.

Card Details
		Notes..
Online Application	Yes	-
Card Type	Classic	-
Payment Company	Visa	The company who provides the payment technology and infrastructure to allow you to use this credit card. Retailers and ATM machines displaying the 'Visa' logo will accept this credit card.
Card Issuer	MBNA	The bank who issues this credit card.
Card Advertiser	The AA	The company who advertises and promotes this credit card.

Review Continued...

The AA credit card offers rewards from the UK's largest breakdown service to take the sting out of driving as well as interest-free offers on purchases and balance transfers for anyone.

Driving discounts

Reward points from the AA credit card can be exchanged for driving discounts on car insurance and car add-ons such as roof racks.

However, it's not just driving discounts that you can benefit from with the AA credit card. Home insurance can be discounted too as can days out or even cash back.

Reward points are awarded to AA credit card members on a sliding scale as follows.

• Ordinary purchases: 1 point for £2
• Motoring purchases: 1 point for £1
• Ordinary purchases (AA members): 1 point for £1
• Motoring purchases (AA members): 2 points for £1

Any service you'd buy from a car garage (e.g. an MOT, parts, petrol or diesel) counts as a motoring purchase. AA products also count.

Unlike other reward schemes there aren't any bonus points when you join so rewards will take a while, though the approximate worth (1p per point) is usual amongst reward credit cards.

As an example, if spending £2000 on the AA credit card - half on purchases, half on motoring purchases - will get you £15 to spend.

AA members would earn £30 on the same AA credit card spend.

As with all credit card reward schemes, it's important to know what counts as a purchase.

It might sounds obvious but it's caught many a credit card holder out. Cash withdrawals don't count as purchases and that includes ATM withdrawals, cash back at the till and gambling transactions.

Note also that cash withdrawals will be subject to a 3% fee and a 27.9% interest rate with no interest-free period.

In short, avoid it.

0% on purchases and balance transfers

If a large car expense would be hard to meet, the AA credit card could help keep you on the road with its 0% purchases rate for the first 10 months.

The 0% balance transfer offer is similarly useful though since this lasts slightly longer (12 months) exercise caution before using them together.

The AA credit card's order of payments allocates to the lowest interest rates first. When there are two 0% rates, the shortest 0% deal will be paid off first.

In practice this means that if, after 10 months, you still have a purchases balance as well as a balance transfer balance on the AA credit card you'll end up paying interest on the purchases for the last two months unless you can clear the balance in full.

As long as you're aware of this, though (and now you are!) you can easily plan around it and avoid extra interest.

0% money transfers

The AA credit card is also notable for being a super balance transfer credit.

That is, a money transfer can be made and paid off at 0% for the length of the credit card's balance transfer offer.

This could be handy if you have an outstanding overdraft, a loan that you can overpay or you need to pay for something in cash (i.e. you can't use the credit card for purchases).

Note that money transfers have a slightly higher handling fee than balance transfers (4% to balance transfer's 3%) money or balance transfers must be made within 90 days of application for the AA credit card.

Fraud Protection

MBNA isn't well-known for its swish and comprehensive extras and the AA credit card is no exception.

However, the online account management is basic and does the job and the same goes for the active fraud monitoring service.

All in all

All in all, the AA credit card offers extra rewards for drivers - particularly AA members - but big spenders and those with high-interest balances elsewhere will benefit the most.

Apply Online for The AA credit card »