£400 Loan?
Find out why a credit line might be better.
Looking for a £400 loan? Try a Drafty line of credit
Looking for a £400 loan to meet your small emergency needs? We could offer you something better (at least in our opinion!).
Here's how Drafty's line of credit could help you:
- Speed - You'll get a fast decision. And if approved, we’ll send the cash to your bank in under 90 seconds
- Borrow what you need – Apply for up to £3000 and withdraw up to your approved credit limit when needed
- Reuse - Once you’ve used Drafty, you can withdraw up to your agreed limit again. No need to reapply
- No fees – We don't charge any extra fees. Also, you only pay interest on what you use. It doesn't cost you a penny if you don’t use any of your credit
At Drafty, we’re proud of our customer service. See why we’re rated great on Trustpilot.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
Drafty is FCA Authorised
We’re an FCA-authorised and regulated direct lender. Our authorisation number is 689378. Responsible lending is our biggest priority, and we want to ensure our customers' experience is great. We believe in ensuring that you are fully informed about the costs, fees, and repayment terms of our credit line. To achieve this, we have taken great care to present all charges, including interest rates and fees, upfront. No hidden costs or unwelcome surprises - everything is clear and easy to understand.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
How is Drafty an alternative to a £400 loan?
- Credit and affordability checks: We assess your creditworthiness and affordability to ensure that any borrowing aligns with your financial capacity. This ensures you are not taking on more debt than you can handle.
- Flexible credit line: Upon approval, we provide you with a credit line, allowing you the flexibility to borrow funds up to a specified credit limit. This distinguishes us from payday loans and other traditional loans, as it enables you to borrow varying amounts based on your unique needs. Rather than being restricted to a fixed loan amount.
- Flexible repayment terms: You can make minimum payments or pay off the balance in full, depending on what works best for your financial situation. This flexibility allows you to manage your repayments in a way that suits your budget and cash flow.
- Quick access to funds: If you need to borrow money on the same day, Drafty may be able to help. Once approved, you could get your line of credit sent to your bank within 90 seconds.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
How do £400 loans work?
If your application has been approved, you'll receive the terms and conditions of the loan. Subject to repayment terms, you’ll repay the loan the following payday. Some lenders offer short term loans which you usually repay within a short period of time allowing you to repay over equal monthly repayments.
As with any financial arrangement, it's crucial to thoroughly review the terms and conditions of the loan, including the interest rate and fees. While a £400 loan can provide immediate relief, responsible management is essential to avoid potential further money problems.
At Drafty, we offer a better alternative. We offer a line of credit. If you're approved for a line of credit, you’ll get an account with a credit limit. From here, you can transfer money from your Drafty account to your bank account anytime within your agreed credit limit.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
What can I use a £400 loan for?
£400 loans can be used for various purposes, including:
- Emergency expense: For example, medical expenses, home repairs, legal fees, or unexpected bills.
- Home improvements: If you need to make urgent repairs or renovations to your home, a loan can help you cover the costs.
- Repairs: If your vehicle breaks down or you need to buy spare parts quickly.
- Bridge financial gaps: Sometimes, there might be a temporary gap between expenses and income, and a small loan can help you manage until your next payday.
At Drafty, we ask you why you need our line of credit. Usually, our customers use it in the same way they would a short term loan. This could be to cover an unexpected expense. For example, car repairs, dealing with a boiler breakdown, or a sudden, unexpected bill.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
How do I check my eligibility for Drafty’s £400 credit line?
You can apply online with Drafty if you are:
- Aged 18 or over and employed
- Earning at least £1,250 a month
- A UK resident with an active UK bank account and debit card
After you’ve provided the required details, we’ll do some credit and affordability checks. If approved, we'll agree on a credit limit and send cash to your bank within 90 seconds. You can even consider us as an alternative to loans for bad credit as we might consider you for our line of credit even if you have a bad credit rating.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
How to apply for a £400 loan alternative with Drafty?
Here's how you can apply:
- Apply – Visit our website and click on the apply now button. Enter a few personal details to help us understand who you are.
- Get a credit limit – If approved, you’ll be given a credit limit of up to £3,000. You can use it as you require, paying interest only on what you use.
- Flexible payment – You’ll need to repay a minimum amount every month. Want to repay early? That’s fine with us! We don’t charge anything extra. Also, it’s easy to make payments through our app.
- Fast Cash transfer – Use Drafty whenever you need to, and we’ll send the money to your bank in under 90 seconds.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
What if my £400 loan application is rejected?
If you’ve been turned down for credit, it’s important to find out why, as you might be able to make some changes.
- Reach out to the lender to discuss the reasons for the rejection. While they don’t have to give you a reason, they may be able to tell you which credit reference agency they used to assess your application.
- Obtain a copy of your credit report to review your credit history. Look for any inaccuracies or negative factors affecting your credit score.
- If you have a bad credit score, take steps to improve it. This may include paying off existing debts, making timely payments, and reducing your credit utilisation ratio. Improving your credit score can increase your chances of getting approved for loans in the future.
- Seeking advice from a financial advisor or a debt counselling service may be helpful. They can provide guidance on managing your finances, help you explore other options, and provide support during challenging times.
Can I get more than £400?
How long can I borrow a £400 loan for?
Can I get a £400 loan with bad credit?
Yes, you may be able to get a £400 loan even if you have a bad credit rating or poor credit history. If you choose to apply for a line of credit with Drafty, we'll consider your personal circumstances to ensure you can afford your repayments before accepting you. We consider more than just your credit file, so there's a chance you could still be approved for our credit line, even with a low credit score.
If you are facing financial difficulty, you can contact a money advice service for support.
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 - £400 loan
Is Drafty a £400 payday loan lender?
No Drafty is not a payday loan lender. Drafty offers a flexible credit line. Unlike payday loans with a fixed repayment date, Drafty provides ongoing access to credit, and borrowers are charged interest only on the amount they borrow.
Can I get a £400 loan with no credit check?
We advise you to not take a loan from any lender who offers a loan with no credit check. All FCA-regulated direct lenders need to perform a credit check as part of the loan application process. This practice is in place to prioritise responsible lending and ensure a thorough assessment of each application.
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.