Drafty loans review 2024

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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.

What is Drafty?

Drafty is a direct lender (not a broker) authorised and regulated by the Financial Conduct Authority. It offers borrowers ongoing access to a line of credit of up to £3,000 that they can borrow against quickly and easily when necessary.

Drafty is a part of GAIN Credit LLC, a popular US-based lender that also owns Lending Stream. Launched in 2015, it markets itself as an innovative and flexible alternative to expensive short term loans or overdrafts.

How does Drafty work?

Unlike regular short-term loans, Drafty actually offers a line of credit account in which you only pay interest on the credit you use. How long you borrow is up to you, as long as you pay the minimum monthly repayment. Also, there are no late fees or no early repayment fees.

Drafty says it aims to send the cash from your credit line to your bank within 90 seconds.

Is Drafty a payday loan

No, it’s not. However, it is designed to fulfil a similar function – namely, a means to borrow relatively small amounts of money quickly when you find yourself a little short.

With a representative APR of 96.2%, it’s cheaper than traditional payday loans – falling below the Financial Conduct Authority’s 100% APR threshold for “high-cost short-term credit”.

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 access to the facility either on Drafty’s website or via the Drafty app.

Product Name	Drafty Line of Credit
Available Amounts	£50 to £3,000
Representative APR	96.2%
New customer maximum	£3,000
Loan terms	Open-ended line of credit
Maximum APR	1,721%
Soft search eligibility check
Employer contacted during application
Funding speed	Drafty says it aims to send the cash from your credit line to your bank within 90 seconds.
Repayment period options	Monthly
Default repayment method	Continuous payment authority
Additional repayment methods	Online payment
Repay early at any point
Parent company	GAIN Credit
FCA registration number	689378

Pros and cons of a Drafty credit line

Pros

No hidden fees
Fast funding
Only pay interest on what you use
Convenient once set up
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 and letting your debt drag on
Because the line of credit is always there and available, you might be tempted to borrow when you otherwise wouldn’t

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:

Residency	UK resident
Minimum age	18
Min. income	£1,250 a month (you must be paid monthly to be considered for a line of credit)
Additional eligibility notes	You must have an active bank account and debit card.

How do I pay back my Drafty credit line?

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

Drafty customer reviews

Drafty has received positive reviews from customers, according to review platform Trustpilot. It currently has an “excellent” rating of 3.9 out of 5, based on more than 10,100 reviews (updated February 2024). Many customers praised their helpful customer service and quick loan application process. Negative reviews highlighted their high APRs.

How do I apply for a Drafty line of credit?

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.
Drafty gives 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.
You are told how much is available for you to borrow. Choose how much you want, and Drafty sends 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.

Does Drafty do a credit check?

Yes. As a responsible lender, Drafty runs 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 reviews 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 can 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.

Does Drafty affect your credit score?

When you first apply for the credit line, Drafty runs a search of your credit file. These have a small (and usually short-lived) negative impact on your credit score.

If you go on to borrow money using your credit line and make at least the minimum monthly payments on time, your credit score should benefit, as you’re demonstrating that you use credit responsibly.

Customer support information

You can contact Drafty by email at info@drafty.co.uk with any queries or by phone on 0203 808 4440 (Call charges apply. Standard charges from BT landlines, mobiles and other providers may vary.)

Option to change repayment date
Repay early at any point
Repaying early can reduce overall interest
Phone number	0203 808 4440 (Call charges apply. Standard charges from BT landlines, mobiles and other providers may vary.)

Is Drafty any good?

If you’ve used payday loans in the past and think you might again in the future, Drafty is likely to be a significantly cheaper option.

While a fixed-term loan can be easier to budget for, products like Drafty’s innovative credit line offer the flexibility to borrow as much or as little as you need, as and when you need it. So it’s quick and convenient.

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’s a smart way to borrow.

It’s not the only alternative to a payday loan – you may wish to consider a credit-builder credit card, an authorised overdraft, or any of the options outlined by the government’s MoneyHelper.

Other frequently asked questions

A line of credit is an ongoing credit facility with agreed limits. Unlike a loan that’s issued as a lump sum and paid off over a fixed period, a line of credit can be accessed whenever you need it, and you can borrow as much or as little as you like (subject to an agreed maximum).
You then choose how much you want to repay each month (subject to a minimum amount), until the debt is cleared. And within your credit limit, you can borrow more at any time. Unless you close your account, the facility is always there and available for you to dip into.
More traditional examples of lines of credit include credit cards and authorised overdrafts.
One of the main advantages of a line of credit is the flexibility – you only borrow what you need, when you need it, and you can pay it back over a timeframe that suits you and can adapt to your changing circumstances. The flexibility of a line of credit is also one of its main disadvantages, however – presenting the risk that you might borrow when you otherwise wouldn’t have or let debt drag on and on.
Unlike a loan, a credit line is a flexible way to borrow money. It allows you to borrow amounts of your choosing as many times as you like, up to your approved amount. The initial minimum withdrawal is £50, after which the minimum for withdrawals becomes £100. You pay interest only on the amount you borrow.
As long as your account is in good standing, you won’t need to reapply when you need additional funds. Simply log into your account and request a transfer of funds into your bank account. It’s there when you need it, but you don’t have to use it. There is monthly repayment, which you must be sure you can comfortably make. You also have the option of making larger payments or repaying early, which saves you money overall.
A loan is a fixed amount that you borrow with a fixed payment schedule over a certain time. While it doesn’t offer the same flexibility as a credit line, it can be easier to budget for and to understand how much you are paying back in total. When you take out a loan, you receive the cash in a lump sum. If you require additional cash in the future, you must go through the application process again and will be subject to a new credit check.
The first time you apply for a Drafty credit line, you can request a credit limit of any amount between £50 and £3,000. Drafty performs a fast, personalised review of your financial situation (not just your credit score) and provides you with a fast decision. This includes letting you know the full amount you are eligible to receive.
Periodically, Drafty reviews your credit limit. If your account is found to be in good standing and you meet the affordability requirements, Drafty may offer to increase your credit line to £5,000, with 30 days’ notice for you to accept the increase (if you don’t accept it, your limit won’t be changed).
You can also ask Drafty to reduce your limit if you’d rather not have the temptation to borrow.
If you have available cash in your credit line, simply log in to your Drafty online account or open the app on your smartphone to request funds. You have 24/7 access to your account so you can check your balance and draw additional funds from your credit line at any time. Drafty says it aims to send the cash from your credit line to your bank within 90 seconds. Remember to only draw amounts that you can comfortably afford to repay.

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Chris Lilly

Head of publishing

Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio

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Sites like Drafty
Drafty provides an ongoing line of credit of up to £3,000 as an alternative to payday loans and expensive overdrafts. See similar short term loan companies.