Helping you search for the right loan

  • Borrow between £1,000 and £25,000
  • No impact on your credit score

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UK residents aged 18 and over with a provable income

Customers rate our service 9/10*

RAC Loans

An RAC loan allows you to borrow up to £25,000 and pay back a fixed amount every month, over a set term. Our loans can be used for a range of purchases, such as buying a car, making home improvements, consolidating debts or funding a wedding. Whatever you need, the RAC could lend a helping hand.  

 Borrow from £1,000 to £25,000 

 Low interest rates from 3.9% APR

 Get funds in your account in minutes1

Why choose RAC Loans?

Here at RAC Loans, we partner with credit broker Freedom Finance, and their approved panel of UK lenders to help you find the right loan.

  We search over 20 leading lenders for you   Our search won’t affect your credit score   We let you know if you’re pre-approved


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UK residents aged 18 and over with a provable income

What types of loans are available through the RAC?

Car loans

Our loans can be used to buy a new car or pay for repairs. Using a loan to buy a car means you’ll own it outright and won’t have to worry about mileage restrictions or making adaptions.

Debt consolidation loans

A debt consolidation loan allows you to pay off other debts with one loan, leaving you with just one monthly repayment to keep track of - instead of juggling lots of different ones.

Home improvement loans

Home improvement loans can be used for big or small renovations, such as funding a new extension or simply giving your property a lick of paint.

Personal loans

A personal loan is an unsecured loan and lets you borrow money and pay back a fixed amount every month, over a set term. You can use the money for many different things like, financing a car, a wedding, or a home improvement.

Wedding loans

With the average wedding in the UK now costing around £30,000 — a wedding loan can be used to cover the entire day or pay for specific costs such as catering or flowers.
Get my quote  
UK residents aged 18 and over with a provable income

Am I eligible for a loan?

Here at the RAC, we look at every customer individually. But we do have a few basic criteria that you need to meet before we can look at your eligibility:

  You must be a UK resident    You must be aged 18 and over    Have an annual income which you can prove   Have a personal bank account in the UK



When you look for a loan with us, we soft search your credit history, which means we can check your eligibility without harming your credit score. While this search is visible to you on your credit report, it’s not visible to other lenders and will not affect your credit score.

When will I receive my money?

Once your application has been approved, the lender may call or email you to finalise your loan and arrange for the funds to be paid out. You may be required to send documents to the lender if they need further information. This means you could receive your funds as quickly as the same day within minutes of applying, or up to 5 days after being approved, depending on the lender.

How does an RAC personal loan work?

A personal loan is an unsecured loan, where you borrow a set amount and make regular monthly repayments set at a fixed interest rate for a fixed term. Our partnership with Freedom Finance, a leading credit broker, means we can offer our customers a different solution to borrowing money and finding a loan. We work alongside Freedom Finance so we can provide our customers with their very best loan offer from a panel of hand-picked lenders we trust.

What is an APR?

APR is the Annual Percentage Rate (APR) — it is used to describe the overall cost of money borrowed. It takes into account the interest rate, when it is charged, any fees charged when setting up the loan and any other costs applicable to the loan. Our APR starts from 3.9% and we cap the rate at 49.9%. 

The Representative Rate is an APR which an advertiser reasonably expects most people who apply for this product will get — our representative rate is currently 19.9% (fixed — based on funded loans Jan-Jun 2022).

Will I receive the advertised APR?

The APR you receive may vary from the advertised rate. This is the representative rate which we expect most people who apply to get.

The rate you are offered will be a personalised rate based on your current individual circumstances including credit information held about you by the credit reference agencies, the loan amount you borrow and length of time you borrow for.

What is a credit score and how does it work?

To help understand whether to provide you with credit and to ensure responsible lending, your personal circumstances are taken into account.

Your credit score is calculated using information based on any credit applications you’ve made from your current or previous addresses, any history of debt, including any County Court Judgements (CCJs), Individual Voluntary Arrangements (IVAs) or bankruptcies. It also shows how you’ve maintained repayments to your credit cards, store cards, loans and mortgage.

These individual values are then added together to provide a final score which provides the basis for our decision. Every lender has a different way of calculating it, largely because they all have access to different information, but they also have different lending criteria. This is a system we use to help us decide whether we can lend you money and is also used by most other banks — the higher your credit score, the better your chances of being accepted for credit, at the best rates.

What is an unsecured loan?

An unsecured loan isn't tied to any collateral, such as a car or house — so you'll need at decent credit score to qualify.

What is a secured loan?

A secured loan is tied to an asset of yours as security. For example, you could take out a secured loan for buying a car – when you repay the loan the car is yours, but if you don't repay then the lender could seize your car.

Car Finance Guides

Car finance can be a good method of purchasing a vehicle, but you need to work out whether this is right for you before committing to a contract. Find out more here.


The world of car finance can be confusing to drivers that haven't used this service before. Learn about the most important terms and what they mean here.


The end of a car finance deal can leave you with some tricky decisions to make for you and your vehicle. The RAC is here to guide you through this process.


Understanding the different types of finance packages available will help you get the best deal for both your individual needs and your wallet.


Hire purchase is a method of car finance that has become increasingly popular in recent years. Learn more about whether this is suitable for you here.


Personal Contract Purchase (PCP) is a popular way of financing a car. Learn about the benefits of this type of loan, plus any potential risks, here.


*Average score of 8.76, based on 45 responses from a net promoter score survey from September 2019 to June 2022.

1Dependant on circumstances and lender suitability.

RAC Loans is a trading name of RAC Financial Services Limited who act as a credit broker and are not a lender. Registered in England and Wales no. 5171817. Registered office: RAC House, Brockhurst Crescent, Walsall, WS5 4AW. RAC Financial Services Limited is authorised and regulated by the Financial Conduct Authority. Firm registration number 313989. RAC Loans are provided by Freedom Finance who act as a credit broker and are not a lender. Freedom Finance is a trading style of Freedom Finance Limited registered in England and Wales. Company number 06297533. VAT Registration Number: 257 0001 44. Freedom Finance Ltd is authorised and regulated by the Financial Conduct Authority. Firm registration number 662079. See Registered office: Atlantic House, Atlas Business Park, Simonsway, Manchester M22 5PR. RAC Financial Services Limited do not charge for introducing you to Freedom Finance but may receive a commission payment from Freedom Finance on completion of your loan application.

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