Drafty is a line of credit direct lender catering to customers in the United Kingdom. This is an alternative to a short-term loan. Borrowers can secure up to £3,000 as a line of credit when they need it with ongoing access and flexibility. The company does not affect your credit rating when applying and there are no late fees or early repayment fees payable. On approval, the funds can be in your UK bank account within ninety seconds.

They have an APR of 89.7%, so if you borrow £1,200 and repay the loan in equal parts, the total payable is £1627.05.

Overview

Drafty is a UK direct lender, they are not a broker. They are regulated by the Financial Conduct Authority (FCA) offering borrowers ongoing access to a line of credit, which is up to £3,000.  This enables borrowers to access funds quickly and as needed.

Drafty is part of a popular US based lender, known as GAIN Credit LLC and was launched in 2015. They offer flexible and innovative alternatives to overdrafts and short term loans.

Services

Drafty in the UK offers a line of credit, rather than a short term loan. You only pay interest on the amount of credit you use. There is no set repayment schedule and you can access the credit for as long as needed, as long as you make your minimum monthly repayments, similar to a credit card. Borrowers can draw on any credit they have available at any time with the money being in their UK bank account within ninety seconds.

While it is not a payday loan, it offers a similar function. It enables borrowers to borrow small amounts quickly when they find themselves in an emergency and need cash in a hurry. The APR is cheaper than a payday loan at 89.7%, which is bellow the FCA’s 100% threshold.

Once approved borrowers can access their line of credit immediately via the website or mobile application. Credit amounts range from £50 to £3,000 and is an open ended line of credit which relies on a soft search edibility check and your employer will be contacted during the application process. It uses the continuous payment authority to collect monthly repayments, though borrowers can also use an online payment to pay earlier at any time.

The cost of using this line of credit is determined on how it is used. You only pay interest on the credit you use, which incurs at 0.18% daily with an APR of 89.7%. Minimum payments is either £50 or 6% of the balance, along with the interest accrued, based on the greater amount.

Due to the fact that you only repay the interest on the credit used, it works out cheaper than a traditional payday loan. There are no hidden fees, it is quick and easy to apply and convenient once set up. They offer a competitive rate when compared to payday loans.

It is important to note that it may be harder to be approved than applying for many of the payday loans on the market.  Eligibility requirements include being a UK resident and over the age of eighteen with a minimum monthly income of £1,250 per month. You will also need an active UK bank account and debit card.

Drafty Contact Details

Date of incorporation:  2015

Company number: 12791087

Company type: Limited Company

Registered company address: 130 Old Street, London, England, EC1V 9BD

Official site: https://www.drafty.co.uk/loans/short-term-loans/

Operating hours: 9 am to 6 pm Monday to Friday and 9 am to 1 pm on Saturdays.

Phone number: 0203 695 8072

Summary

In order to be considered for a line of credit with Drafty, you need to be over the age of eighteen and employed with a monthly salary of at least £1,250. You also must be a UK resident with a debit card and active bank account. They offer a line of credit of up to £3,000 with flexible repayment terms of up to sixty months.

Interest is calculated at 0.18% per day, which means paying 18p for every £100 borrowed per day.  This is considerably cheaper than a payday loan.