Loan interest rates??

vgster

I have had a loan with The AA for over 3 years now and recently called to see about topping it up. As an existing customer I phoned the number on their website and was told that on the amount I wanted for the period I required the interest rate was 8.3%. I had previously checked the website and, as a new customer, I could get a loan for the same amount over the same period at 7.3%, or 6.9% if I was an AA member (which I'm not). They said to just apply for a new loan online and then phone them with the details so they can do whatever they need to do.

However, I then checked with yourpersonalloan as it was showing the same 6.9% rate. After putting in the same amount and period I got a different result. These were cheaper than the AA over the same period on the same amount at the same interest rate.

How is this possible?

Rafter

vgster,

The monthly payment amount might vary a bit. 6.9% from the AA might really be 6.9499999% rounded down. Banks do this to squeeze every last penny out of customers. The best buy tables have generally got wize to this and rank by payment rates.

Should be a matter of pennies per month. Much more and there may be an error.

R.

vgster

That's what I had figured. However, it's a difference of £3.62 a month over 4 years on the amount I was looking to borrow.