Drafty Credit Line
Apply for a credit line for up to £3,000
Representative Example: Assumed credit limit: £1200. Representative 96.2% APR (variable). Annual interest rate 69.4% (variable).
What is a line of credit and how does it work?
A line of credit is an even better alternative to a loan, overdraft or credit card, but with some important differences.
If we approve you for a line of credit , you’ll get given an account with a credit limit. From here, you can transfer money from your Drafty account to your bank account at any time.
As long as you meet minimum monthly payments, you can manage how you repay and you’ll only get charged interest on what you withdraw – how good is that?
Why a Drafty line of credit is the bees’ knees
Here are some of the reasons a Drafty line of credit might work for you:
- Convenient – Applying for a Drafty line of credit is a piece of cake. Jot some details (like your name, income and outgoings) into our online application form and we’ll sort the rest
- Quick – You could receive money to your bank in under 90 seconds of approval when you take out a cash credit line with us
- Flexible – You can repay your minimum amount every month. You can pay the whole lot off to save on interest. It’s up to you. What’s more, there’s no charge for repaying early and we make it easy to do so on our app
We’re proud to offer our customers an honest and open service. But don’t just take our word for it – browse our reviews and see why we’re rated 'Great' on Trustpilot.
On our ‘Compare Loans’ page, we highlight the benefits of Drafty compared to other credit card loan direct lenders and check out our ‘About Drafty’ page to find out more about the service we provide
Apply in minutes to see why a Drafty line of credit is better than the rest.
Representative 96.2% APR (variable)
How do you calculate interest on a line of credit?
How much you pay on your line of credit will depend on how much you borrow from it. If you haven’t borrowed anything, you don’t need to pay anything. There are no subscription fees, late fees or anything like that to worry about.
To make things straightforward, you will be sent a monthly statement showing your total outstanding amount and your minimum monthly repayment.
Here’s how we calculate it.
Your repayment amount will be whichever is larger out of:
- 6% of the amount you’ve borrowed plus any interest accrued
- £50 (unless your outstanding balance and interest are under £50 in total)
If your line of credit was agreed upon before April 2021, your repayment amounts might be different. For more, please read our minimum monthly payment FAQ.
Representative Example:
Assumed credit limit: £1200. Representative 96.2% APR (variable). Annual interest rate 69.4% (variable).
Credit line vs loan – which do I choose?
A loan is usually for a defined amount of time – whether it’s a month or so (like a payday loan), a six-month loan (like our sister brand, Lending Stream), or a multi-year loan. The rates are usually lower if you borrow for longer (although that doesn’t mean you can take out a one-month loan and just pay it back two years later for a lower rate).
A line of credit is different because it’s more flexible as it doesn’t have a defined amount of time. A cash credit line is available for you to use whenever you need, and you repay as much as you want (along with minimum payments, of course).
Credit line vs overdraft – which do I choose?
A line of credit and an overdraft are similar as they’re both somewhat flexible – they’re there for you to borrow whenever you need and you usually don’t pay anything if you don’t use them.
However, an overdraft is linked directly to your bank account, whereas a credit line isn’t. You can apply for a Drafty line of credit no matter who you bank with. It might be worth taking a look at how much your overdraft costs you, especially if it’s unarranged.
Dive deeper into what we’re all about – Drafty might be just what you’re looking for!
Why Drafty?
A Drafty credit line is a fast way to get cash whenever you need it. Just apply online and, if approved, you’ll be given a credit limit that you can use whenever you want*.
Credit line vs Credit card – which do I choose?
A credit card is a physical card that you can use to make purchases. On the other hand, you draw funds from your credit line and they’re sent to your bank account so you can use your debit card to make purchases.
Some people prefer to use a line of credit, as credit cards can sometimes feel too tempting to use in the moment on large purchases! A line of credit can put you in more control of your finances.
How to apply for a Drafty line of credit
To apply a credit line with Drafty, just head to our snazzily titled Apply page. (OK, not that snazzy)
You’ll need to provide us with some personal details, information about your income and outgoings each month. This helps us run identity, affordability and checks with a credit reference agency (don’t worry, we won’t leave a mark on your credit record unless you actually take out a credit line).
How much do you want to borrow?
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
Am I eligible for a Drafty line of credit?
Our credit line eligibility basics include:
- You’re aged 18 or over and employed
- You’re earning at least £1,250 a month
- You’re a UK resident with an active bank account and debit card
Three yesses and it’s on to the application page for you.
What if my line of credit application gets rejected?
Don’t worry if your line of credit application gets rejected. It may well be down to something that is easily fixed and there are opportunities to apply again at a later date.
We can’t give you details if your application is rejected, however, if you apply for our credit line online, we’ll provide you with the name of the credit reference agency by email. You can check your credit file with them in case there are any errors causing issues there.
One rejected application won’t last forever. If a credit file error is at play and you get it fixed or your circumstances improve over time, you will be more likely to be accepted.
Contact Drafty today
- Live chat - Log in or create a new Drafty account to speak to our team through our live chat function
- Drop us a message - If you'd like to send us an email, checkout our contact us page and drop us a line. A member of our friendly team will answer your questions as soon as possible
- Give us a call - We're here to answer your calls on 0203 695 8072 from 9am to 6pm Monday to Friday, and 9am to 1pm every Saturday#
FAQs
Credit line eligibility
To be eligible to apply for a credit line, you’ll need to be at least 18 years old, a UK resident, employed with a UK bank account and debit card. You will also need to pass affordability, credit and fraud checks.How to access cash from your line of credit
If you’re approved for a Drafty credit line, it’s easy to draw cash from it – just log in and go to your account. You can draw cash to your bank account from there.How to pay your line of credit
If you borrow anything from your line of credit, you’ll have to make minimum monthly repayments at least. You can set these up automatically. The quickest way to make further repayments is to log into your account and make payments online from there.Drafty is an FCA-authorised provider of a Revolving Line of Credit with a credit limit of up to £3000, available to borrow as and when you need it (subject to affordability checks). You only pay interest on what you draw/use.
Representative Example: Assumed credit limit: £1200. Representative 96.2% APR (variable). Annual interest rate 69.4% (variable).
There is no set minimum or maximum repayment term, so long as the minimum monthly repayment sum is met, however, you may repay back early without any fees and save on interest.