Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
Please note: High-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
Drafty is a direct lender (not a broker) authorised and regulated by the Financial Conduct Authority. It offers borrowers ongoing access to a line of credit of up to £3,000 that they can borrow against quickly and easily when necessary.
Drafty is a part of GAIN Credit LLC, a popular US-based lender that also owns Lending Stream. Launched in 2015, it markets itself as an innovative and flexible alternative to expensive short term loans or overdrafts.
Unlike regular short-term loans, Drafty actually offers a line of credit account in which you only pay interest on the credit you use. How long you borrow is up to you, as long as you pay the minimum monthly repayment. Also, there are no late fees or no early repayment fees.
Drafty says it aims to send the cash from your credit line to your bank within 90 seconds.No, it’s not. However, it is designed to fulfil a similar function – namely, a means to borrow relatively small amounts of money quickly when you find yourself a little short.
With a representative APR of 96.2%, it’s cheaper than traditional payday loans – falling below the Financial Conduct Authority’s 100% APR threshold for “high-cost short-term credit”.
If you’re approved for a Drafty line of credit, you’ll be given a credit limit and access to the facility either on Drafty’s website or via the Drafty app.
| Product Name | Drafty Line of Credit |
|---|---|
| Available Amounts | £50 to £3,000 |
| Representative APR | 96.2% |
| New customer maximum | £3,000 |
| Loan terms | Open-ended line of credit |
| Maximum APR | 1,721% |
| Soft search eligibility check |  |
| Employer contacted during application | |
| Funding speed | Drafty says it aims to send the cash from your credit line to your bank within 90 seconds. |
| Repayment period options | Monthly |
| Default repayment method | Continuous payment authority |
| Additional repayment methods | Online payment |
| Repay early at any point | |
| Parent company | GAIN Credit |
| FCA registration number | 689378 |
You should only apply for a Drafty credit line if you’re certain you can meet the repayment terms. You must also meet the following criteria:
| Residency | UK resident |
|---|---|
| Minimum age | 18 |
| Min. income | £1,250 a month (you must be paid monthly to be considered for a line of credit) |
| Additional eligibility notes | You must have an active bank account and debit card. |
Like most short-term credit providers, Drafty uses a continuous payment authority (CPA) to collect minimum monthly repayments from your bank account. You can also make additional payments (or even pay off the credit line in full) at any time without being charged a fee.
Drafty has received positive reviews from customers, according to review platform Trustpilot. It currently has an “excellent” rating of 3.9 out of 5, based on more than 10,100 reviews (updated February 2024). Many customers praised their helpful customer service and quick loan application process. Negative reviews highlighted their high APRs.
Yes. As a responsible lender, Drafty runs a “hard” search of your credit file as part of its affordability analysis. However, it also states that it’s interested in more than just your credit history and reviews your unique situation in considering your application.
From then on, you won’t be subject to further “hard” credit checks, but as long as your account remains open, Drafty can monitor your credit situation without harming your credit file in any way. So, if your financial circumstances change significantly, Drafty will probably know about it.
When you first apply for the credit line, Drafty runs a search of your credit file. These have a small (and usually short-lived) negative impact on your credit score.
If you go on to borrow money using your credit line and make at least the minimum monthly payments on time, your credit score should benefit, as you’re demonstrating that you use credit responsibly.
You can contact Drafty by email at info@drafty.co.uk with any queries or by phone on 0203 808 4440 (Call charges apply. Standard charges from BT landlines, mobiles and other providers may vary.)
| Option to change repayment date | |
|---|---|
| Repay early at any point | |
| Repaying early can reduce overall interest | |
| Phone number | 0203 808 4440 (Call charges apply. Standard charges from BT landlines, mobiles and other providers may vary.) |
If you’ve used payday loans in the past and think you might again in the future, Drafty is likely to be a significantly cheaper option.
While a fixed-term loan can be easier to budget for, products like Drafty’s innovative credit line offer the flexibility to borrow as much or as little as you need, as and when you need it. So it’s quick and convenient.
Provided you have the good self-discipline to only use the facility occasionally, for unexpected and unavoidable costs, and don’t let the debt drag on, it’s a smart way to borrow.
It’s not the only alternative to a payday loan – you may wish to consider a credit-builder credit card, an authorised overdraft, or any of the options outlined by the government’s MoneyHelper.
Drafty provides an ongoing line of credit of up to £3,000 as an alternative to payday loans and expensive overdrafts. See similar short term loan companies.