Drafty review July 2020

Designed as an alternative to expensive payday loans and overdrafts, a Drafty credit line lets you access a pot of cash from £50 to £3,000 to use as and when you need it.



Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.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.


Tappily line of credit up to £2,500 as and when you need it

  • Tappily uses read-only access to your current account to provide a flexible line of credit.
  • Avoid unauthorised overdraft fees by setting account balance triggers.
  • Once approved, transfer money into your account within 15 minutes.

Representative example: Borrow £1,200 for up to 75 days at a rate of 124% p.a. (variable). Representative APR 49.7%.


Compare Drafty loans with other lenders

Table: promoted deals, sorted by total payable

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.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.

How much do you need to borrow?

How long do you need to borrow for?

Name Product Available amounts Monthly repayment Total payable
Lending Stream Instalment Loan
£50 to £1,500
Representative example: Borrow £200 for 6 months at a rate of 292% p.a. (fixed). Representative 1,333% APR and total payable £386.61 in 6 monthly payments of £64.44.
Savvy.co.uk Personal Loan
£300 to £3,000
Representative example: Borrow £1,000 for 12 months at a rate of 152.33% p.a. (fixed). Representative 352.7% APR and total payable £1,999.92 in 12 monthly payments of £166.66.
The Money Platform Short Term Loan
£250 to £1,000
Representative example: Borrow £500 for 6 weeks at a rate of 255.5% p.a. Representative APR 839.20% and total payable: £647 in 1 payment.
QuidMarket Short Term Loan
£300 to £1,500
Representative example: Borrow £300 for 3 months at a rate of 292% p.a. (fixed). Representative APR 1,301% and total payable: £454.37 in 3 instalments of £151.46.

Compare up to 4 providers

Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

We compare payday/short-term loans from

Lending Stream Instalment Loan
Savvy.co.uk Personal Loan
The Money Platform Short Term Loan
QuidMarket Short Term Loan

Drafty loan overview

A direct lender authorised and regulated by the Financial Conduct Authority (FCA), Drafty is the UK trading arm of Lending Stream LLC, a popular US-based payday loan provider. Launched in 2015, Drafty markets itself as an innovative and flexible alternative to a short term loan or unarranged overdraft.

Unlike regular short-term loans, Drafty actually offers a line of credit account in which you only pay interest on the credit you use. You aren’t given a set repayment schedule, and can continue to access your credit limit for as long as you want, provided you make your minimum monthly payment.

You can draw on any credit you currently have and receive the funds in under 90 seconds.

Key features of a Drafty line of credit

If you’re approved for a Drafty line of credit, you’ll be given a credit limit and immediately be able to access the facility either on Drafty’s website or via the Drafty app.

Product NameDrafty Line of Credit
Available amounts£50 to £3,000
New customer maximum£3,000
Maximum APR91.2%
Soft search eligibility check
Employer contacted during application
Instant decision in most cases
Funding speedDrafty aims to have the cash in your bank account within 90 seconds of final approval of your credit line.
Repayment period optionsMonthly
Default repayment methodContinuous payment authority
Additional repayment methodsOnline payment
Repay early at any point
Parent companyGAIN Credit
FCA registration number689378
More Info

How much does a Drafty loan cost?

The precise cost of your Drafty line of credit loan will vary based on how you use the account. You can get access to up to £3,000, but only pay for the amount you draw on. Drafty line of credit loans have a representative APR of 89.7%.

As you only pay interest on the credit you use, a Drafty loan can work out cheaper than a regular short-term or personal loan. However, if you only make the minimum payment each month, you may end up paying more in interest over time, as your outstanding balance will continue to accrue interest each month.


Loan amount: £50
Loan term: 6 months (with monthly repayments)
Interest rate: 65.7% p.a.
Representative APR: 89.7%

Total cost: £60

Pros and cons of Drafty loans


  • No hidden fees
  • Fast funding
  • Only pay interest on what you use
  • More competitive rate than many short-term loans


  • Stricter requirements than payday loans
  • Be wary of only making minimum repayments

Am I eligible for a Drafty loan?

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:

ResidencyUK resident
Minimum age18
Min. income£1,250 a month
Additional eligibility notesYou must have an active bank account and debit card.

How do I pay back my credit line?

Like most short-term credit providers, Drafty uses a continuous payment authority (CPA) to collect a minimum monthly repayments from your bank account. You can also make additional payments, or pay off the credit line in full, at any time, without being charged a fee.

How do I apply for a Drafty line of credit loan?

  1. Complete the simple online application form by answering some basic questions about yourself and your employment. In some circumstances, you may be asked to verify some details or submit further documents by phone, email, or fax. Drafty will not tell your employer about your application.
  2. Drafty will give you a quick decision. If it’s a “yes”, you will have immediate access to your Drafty account through the website and app.
  3. You will be told how much is available for you to borrow. Choose how much you want and Drafty will send the money to your bank in under 90 seconds. Your first withdrawal must be a minimum of £50, and £20 after that.

What about credit checks?

As a responsible lender, Drafty will run 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 will review 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 is able to 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.

Option to change repayment date
Repay early at any point
Repaying early can reduce overall interest
Phone number0203 365 0135
More Info

Bottom line

While a fixed-term loan can be easier to budget for, products like Drafty’s innovative credit line offers the flexibility to borrow as much or as little as you need, as and when you need it. 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 may well prove to be a cheaper option.

It’s not the only alternative to a payday loan, however. You may wish to consider a credit-builder credit card, an authorised overdraft, or any of the options outlined by the government’s Money Advice Service.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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