Updraft is an app that aims to help young people manage their money better. Like a number of new finance apps, it uses open banking to show you all your accounts in one place. It also offers free visibility if your credit report and credit score.
When it looks like you’re paying more than you need to on overdrafts or credit cards, Updraft aims to step in by offering you “Updraft Credit” – consumer loans designed to replace traditional bank overdrafts and credit cards.
UK consumers are charged over £3bn in overdraft fees each year, and almost half the adult population have overdrawn on their account in the last 12 months.
Updraft may be suitable if you regularly overdraw on your current account or if you suspect you’re paying more interest than you need to on your credit card or loans. Overdrafts and credit cards can sometimes involve expensive interest rates or fees. Through its Updraft Credit product, Updraft offers loans that can be used to pay off or replace other expensive forms of credit, such as a credit card or overdraft.
The Updraft app connects to your existing bank accounts and cards using Open Banking APIs and then uses AI to send you alerts when you’re at risk of overspending on your account.
If you do overspend, instead of your bank automatically giving you an overdraft, Updraft intervenes to replace your overdraft with a low interest loan, meaning you’ll get access to the money you need without expensive overdraft fees.
Updraft also offers a free credit report and credit score service, as well as tips on how you can improve your credit rating.
Representative Example: Assumed credit limit: £1200. Representative 96.2% APR (variable). Annual interest rate 69.4% (variable).
Updraft uses Truelayer to provide its account information services, and currently supports current accounts and credit cards from the following banks and providers:
| Bank | Current accounts | Credit cards |
|---|---|---|
| American Express | ✓ | |
| Bank of Scotland | ✓ | ✓ |
| Barclays | ✓ | TBA |
| Danske | ✓ | |
| First Direct | ✓ | |
| Halifax | ✓ | ✓ |
| HSBC | ✓ | |
| Lloyds | ✓ | ✓ |
| M&S Bank | ✓ | |
| MBNA | X | ✓ |
| Monzo | ✓ | |
| Nationwide | ✓ | ✓ |
| Natwest | ✓ | ✓ |
| RBS | ✓ | ✓ |
| Revolut | ✓ | |
| Sainsbury’s Bank | TBA | TBA |
| Santander | ✓ | ✓ |
| Starling | ✓ | |
| Tesco Bank | TBA | TBA |
| TSB | ✓ | ✓ |
| Ulster Bank | ✓ | ✓ |
| World First | TBA | TBA |
| Virgin Money | ✓ | ✓ |
Updraft offers loans with a representative APR of 17.9%, but the specific cost of your Updraft loan will depend on a number of factors, including how much you borrow and how long you have the loan. You may also find that you could save money by simply getting a traditional overdraft, as some banks offer fee-free and interest-free overdrafts. The other features and services of updraft don’t come with a price tag.
Anybody can get the Updraft app for free from the Apple App Store. Once you’ve signed up, you can then apply for an Updraft loan through the app, after connecting your bank accounts (including whichever account has the debt you’re looking to consolidate).
Updraft has partnered with TransUnion, one of the three main credit reference agencies in the UK, to bring you visibility of your credit score and report. To access this part of the app, you’ll need to answer a few questions about your financial history to prove that you’re who you say you are.
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