Drafty review August 2021

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.

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Drafty

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 Line of Credit

Get up to £3,000 when you need it with Drafty credit line

  • Get ongoing access to a flexible line of credit
  • Find out if you’ll be approved without affecting your credit score
  • No late fees, no early repayment fees
  • Sending funds to your bank within 90 seconds of approval

Representative example: Borrow £1200 for 12 months at a rate of 65.7% p.a. (fixed). Representative 89.7% APR and total payable: £1601.40 at equal instalments.

All credit line applications are subject to status, terms and conditions and to satisfactory passage of checks on credit worthiness and affordability
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Compare Drafty line of credit with other lenders

Table: promoted deals, sorted by total payable

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.

How much do you need to borrow?


How long do you need to borrow for?


Name Product Available Amounts Monthly repayment Total payable Link
Lending Stream Instalment Loan
£50 to £1,500
Go to site
More Info
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.
The Money Platform Short Term Loan
£250 to £1,000
Check eligibility
More Info
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
Go to site
More Info
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.
CASH4UNOW Short Term Loan
£150 to £1,000
Check eligibility
More Info
Representative example: Borrow £200 for 4 months at a rate of 292% p.a. (fixed). Representative APR 1306% and total payable: £332.00, in 4 payments of £83.00.
Mr Lender Short Term Loan
£200 to £1,000
Go to site
More Info
Representative example: Borrow £200 for 6 months at a rate of 292% p.a. (fixed). Representative APR 1,256.0% and total payable £367.40 in payments of £81.33, £73.23, £65.13, £57.33, £49.24, and £41.14.
With this loan your monthly repayment decreases over time. Our 'Monthly repayment' above is a representative figure designed to help compare lenders side by side.
Moneyboat Short Term Loan
£200 to £1,500
Go to site
More Info
Representative example: Borrow £400 for 4 months at a rate of 255.5% p.a. (fixed). Representative APR 939.5% and total payable: £597.48 in 4 payments of £149.37.
Fund Ourselves (Welendus) Short Term Loan
£100 to £1,500
Go to site
More Info
Representative example: Borrow £200 for 122 days at a rate of 211% p.a. (fixed). Representative 501.2% APR and total payable £286.82 in 4 monthly payments of £71.71.
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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
The Money Platform Short Term Loan
QuidMarket Short Term Loan
CASH4UNOW Short Term Loan
Mr Lender Short Term Loan
Moneyboat Short Term Loan
Fund Ourselves (Welendus) Short Term Loan

Drafty line of credit overview

A direct lender authorised and regulated by the Financial Conduct Authority (FCA), Drafty is a part of GAIN Credit LLC, a popular US-based lender which also owns Lending Stream. Launched in 2015, Drafty markets itself as an innovative and flexible alternative to a short term loan 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. 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 the funds can be sent to your bank 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 APR89.7%
Soft search eligibility check
Employer contacted during application
Funding speedDrafty says it aims to send the cash from your credit line to your bank within 90 seconds.
Repayment period optionsMonthly
Default repayment methodContinuous payment authority
Additional repayment methodsOnline payment
Repay early at any point
Parent companyGAIN Credit
FCA registration number689378
LinkGo to site

How much does a Drafty Credit line cost?

The precise cost of your Drafty line of credit 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 have a representative APR of 89.7%.

As you only pay interest on the credit you use, a Drafty credit line can work out cheaper than, say, traditional payday loans, for example. 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.

Representative Example

Total amount of credit: £1200
Term: 12 months (with equal monthly repayments)
Interest rate: 65.7% p.a. (Fixed)
Representative APR: 89.7%

Total amount payable: £1601.40

Pros and cons of a Drafty credit line

Pros

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

Cons

  • May be harder to get approved for than some payday loans
  • Be wary of only making minimum repayments

Am I eligible for a Drafty Credit line?

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.
LinkGo to site

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?

  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 based on your affordability and credit checks. If it’s a “yes”, you’ll be able to access 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 for a minimum of £50, and subsequent withdrawals must be for a minimum of £100..

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 695 8072 (Call charges apply. Standard charges from BT landlines, mobiles and other providers may vary.)
LinkGo to site

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

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    Drafty provides an ongoing line of credit designed as an alternative to payday loans and expensive overdrafts.

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