Drafty offers a line of credit with no limit on the length of the term as long as you repay your expected balance to keep the account active.
Known for being one of the best direct lenders in the UK, the platform has grown its offering to become a credit provider for small to big cash loans.
While it will perform a check, this will not be visible on your credit records to other financial service providers if you are not approved, as the inquiry is soft.
Drafty
Max. Amount
£3,000
Credit Check
Soft*
Type
Credit
Tip: You can get up to £3,000 in a credit line and use it as needed. It has no duration limit with your account active if you do not default on repayments.
While the platform sounds similar to an overdraft, it works differently as it allows you to access funds that can be transferred to any bank account of your choice.
It is an interest-tied credit line operating at 0.19% per day, meaning that you will end up paying about 69.4% in annual rates, equivalent to a representative APR of 96.2%.
Drafty and many of the other direct lending providers are a step up to buy now, pay later services, as they are not tied to goods purchases.
You get a credit limit that you can withdraw to your bank. Depending on your credit score, it can be as high as £3,000.
You will go through an inquiry process during your application. While this is soft if you are not eligible, there is a hard check during the final stages for qualified users.
To understand properly how Drafty works, compare it to a credit card where you are assigned a limit. The interest you pay is only on the used funds.
The platform charges no extra fees, including late payments and transactions, making it a good option for some short-term cash.
Its monthly interest is estimated at 5.7%, but it requires a minimum of 6% of the borrowed funds as repayment, provided it is not less than £50.
The best way to enjoy the service is by using it to resolve short-term issues, as you will not pay so much interest.
Drafty reports late payments to the credit bureaus. Hence, use it responsibly and pay pending balances to keep a good financial profile.
How Drafty Works
Drafty is available through its website and mobile app. You can submit your application by filling out a form with details that include personal, employment, and bank details.
Once you have provided the needed information, it runs a soft inquiry at the first stage to determine your eligibility.
Depending on the result of this check, you may be declined to continue or allowed to proceed with the process. In the second stage, there is a hard inquiry, and it will appear on your financial records when reviewed by other providers.
The final stage is the limit decision phase, and you will be able to access funds between £50 and £3,000 depending on how healthy your credit score is.
These funds can be withdrawn to your provided bank details with a monthly interest rate of 0.9% on used credit. It has no maximum term, hence, you can continue using it as long as you repay used funds.
Eligibility Criteria for Drafty
To qualify for a Drafty line of credit, you must meet the following conditions:
- Possess a valid UK debit card.
- Have an active bank account in the UK.
- Reside in the UK.
- Be at least 18 years old.
- Be employed on a full-time or part-time basis.
- Earn a minimum monthly income of £1,250 after tax.
Before approving any application, Drafty reviews your financial situation, credit history, and eligibility.
Affordability checks are also performed to determine a credit limit that aligns with your circumstances.
Features of the Drafty Credit Line
Some of the things to know about the use of the services provided by Drafty include:
Up to £3,000 in Credit
At £3,000 maximum, Drafty has one of the best credit limits you can access to solve short to long-term needs.
However, the highest you can access varies and is majorly dependent on the result of the inquiry it performs to understand your financial standing.
Soft and Hard Credit Inquiry
Just like most financial service providers, you will also undergo a check when you apply for its revolving line of credit.
By default, it is a soft check and will not have so much impact on your credit score, but if you are qualified and continue with the application, a hard inquiry will be conducted, and this will be visible to other lenders.
The Drafty Club
The Drafty Club is a rewards program that gives you access to several incentives and offers. If you have an open Drafty account, you can use this program to save money on a variety of everyday expenses.
You can choose rewards that suit your needs, whether you are looking for discounts on groceries, entertainment, dining, or lifestyle products.
The program, similar to that offered through the Yonder Credit Club, is designed to give you flexibility, allowing you to pick the incentives that are most useful to you.
No Limit in Length
If you are used to taking financing to handle your needs, you probably know there is a limit regarding the duration of payments, with most giving 12 months.
That is not the case with Drafty, as the platform allows the credit to keep revolving with no limit as to the number of months.
You only need to ensure you pay your pending balances to avoid accumulating interest and defaulting on part of its terms.
Interest Rate
Drafty operates on a daily interest model, charging 0.09% on used funds. This is equivalent to 5.7% on a monthly basis. But you can save when you pay fast before a full month.
When you extend until a complete year, this will rise to about 69.4% annual interest or a representative APR of 96.2%.
No Fees
One of the benefits of using Drafty is the no late fee charges. This also extends to transfers to your bank account and late payments.
The only charge you will bear when using the platform is the interest, which is fair considering it has a small daily rate that you can save on with quick repayments.
Not a Credit Card
Drafty is a flexible line of credit. Unlike credit cards, it does not require a physical card for transactions or come with annual fees.
With the service, you can withdraw cash up to your approved limit and only pay interest on what you borrow. There are no hidden charges, and the interest is straightforward.
Legit with FCA Approval
Drafty is a legitimate provider and operates as the trading name of Gain Credit LLC with FCA reference number 689378.
This means you can rely on the platform to handle your financial information securely, provide clear terms, and lend responsibly.
If issues arise, the FCA oversight also gives you access to proper channels for complaints and resolution, ensuring transparency and fairness in your interactions with Drafty.
With a good credit limit of up to £3,000 and flexible repayment terms of a fair 0.19% daily interest rate, Drafty can be a great way to handle your needs, especially in the short term.
However, repay your borrowed funds on time to avoid paying high-interest costs, and do not default to prevent it from affecting your credit score.
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