I was enthusiastic about Fuzel Collage last year when I looked at it. It's been updated to version 3 now, and it has finally become a universal app so iPad users can get in on the creative collage-making fun.
The new version is a complete redesign, and it looks appealing. Fuzel Collage is very free form -- you can have as many photos in a collage as you like, something that many similar apps don't offer. There are some dynamic templates, or you can modify any template to meet your needs. Once a photo is in place, it can be dragged to change the composition, or enlarged or reduced to fit the space. Animated collages can be created, with attractive transitions and using your own music.
Although the app is free (ad supported), there are a number of in-app purchases offering more advanced animations and new layouts. You can also remove the ads for US$1.99. I think most users will get along fine with the free version, but this is an app you should be glad to support.
Your collages can have stickers, text, a variety of frames and frame shapes, and many color options. Once you select your frame, it can be easily modified with thicker or thinner lines, and shadows can be added. If you need more variety, you can download more frames as in-app purchases.
The new version of Fuzel Collage is easy to use, and you can just start to work straight away. There is an introductory guide, but most people will find the app intuitive enough to bypass those instructions.