Looking for long term loans?
You could get more with a Drafty line of credit
Searching for long term loans? Come to Drafty instead
We understand that there might be times when you need a longer-term option from your loan. That's why our line of credit offers a flexible way of borrowing, without tying you into lengthy repayment terms, which is what some bad credit long term loan providers tend to do. So, if you need a long term loan for bad credit, take a look and see what Drafty could offer you first:
- Speed - With some long term loans, you could have to wait to get your hands on your cash. But with Drafty, we aim to get the funds sent to your bank within 90 seconds, once you’re approved
- Borrow what you need - You could borrow up to £3,000. You're then free to use just as much as you wish from your approved credit limit
- Reuse - We think you'll like this one: when you take out a Drafty credit line, you can reuse up to your limit whenever you need, without having to reapply
- No fees - Absolutely none. And you'll only pay interest on what you use from your credit limit. We said that we could give you more!
Why not take a look and see what our customers think? We're proud to deliver high standards of customer service; see why we're rated 'Great' by our reviews on Trustpilot.
We're also committed to providing a fair and responsible service to borrowers. We're fully regulated by the Financial Conduct Authority (FCA). We only offer our line of credit to those whom we know can afford it.
What's more, we think that you should be able to make an informed decision when it comes to your borrowing. That's why our Compare Loans page shows how our long term loan alternative stacks up against some of our competitors.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
What is a long term loan?
A long term loan is essentially a loan that's taken out over a longer period than your typical short term loans or payday type loans. People tend to take out long term loans because they might benefit from lower monthly repayments, spread out over a longer stretch, especially if they want to borrow a bigger amount.
There are a few long term loan types available from lenders. You might come across products such as personal loans, secured loans, unsecured loans and guarantor loans. All of these types of loan can be categorised as long term loans if the lender sets a longer repayment term.
Depending on circumstances, interest rates might sometimes be lower on long term loans than you'd typically get from a short-term loan. However, if you borrow a larger amount, you could end up paying more overall. This can also be true if you want a long term loan for bad credit and they're not always suitable for short-term expenses.
What are long term loans typically used to do?
Many people choose to take out long term loans for larger expenses and if they know they're in a financial position to continue to repay over a period of years, rather than months. For this reason, they're often not ideal for emergency situations such as urgent bills or unexpected repair costs.
In these situations, it's often more beneficial to take out a short-term loan instead, which can give you quicker access to funds and can be repaid over a shorter period of time. Our line of credit has these same benefits and could be a better option than a long term bad credit loan.
What can Drafty offer instead?
Unlike with most short term loans, if you don’t use the money from your credit line, you don’t pay anything. If you do use the funds, it can be cheaper than going to high-cost short term loan direct lenders. On top of all that, you won't pay any fees, either. That's right; not even if you make a late payment (though we don't encourage this, and it could affect your credit report) or if you want to repay early.
In short, with a Drafty line of credit you'll benefit from:
- Fast access to your cash
- No fees
- Flexible borrowing
- A credit limit of between £50-£3,000
- The ability to reuse your approved credit limit with no further credit checks (provided that your account is in good stance with us)
Want to discover more about Drafty’s line of credit? Then visit our FAQs or check out our pricing page to see how much a credit line could cost you.
Ready to get started?
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
Sounds good? Here's how to apply for our long term loan alternative
- Be 18 or over and employed
- Be a UK resident with an active bank account and debit card
- Earn at least £1,250 a month
- Apply - We just need a few personal details to help us to assess your affordability
- Agree a credit limit - If you’re approved, you’ll be given a credit limit of up to £3,000. Use what you need and pay interest only on what you use
- Flexible repayments to suit you - You repay a minimum amount every month. And if you want to repay sooner, that's fine! There are no fees for doing so and it's easy via our app
- Faster cash - Use Drafty whenever you need to, and we’ll send the money to your bank in under 90 seconds, once approved
Are there any downsides to long term loans?
Long term loans can be useful for some people who are happy to be tied into a fixed term repayment period and need to borrow a larger amount than they could from a short-term option. But it's a good idea to be aware of potential disadvantages, including:
- Extra fees - Some lenders might charge fees for repaying early or for late payments. If you take out a Drafty line of credit instead, you won't have to worry about any fees. We just love keeping things simple!
- High interest rates - This can often be the case when it comes to taking out a long term loan for bad credit and, even though you might like the idea of lower monthly repayments, it could end up costing more overall
- Having to back up your loan - Depending on how much you borrow, this could be through a guarantor or by securing your long term loan against an asset such as your home. With our line of credit, you won't need to provide any collateral to secure your borrowing
Contact the team at Drafty
- 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#
Long term loan FAQs
How much can I borrow with a long term loan?
This will depend on your circumstances and the lender's criteria but, in general, you can usually borrow a larger amount than with a short-term loan. However, you'll normally take out the loan over a period of years, rather than weeks or months. This means that your payments will likely be lower but you'll be paying it back for longer.
With Drafty's alternative to long term loans, you could borrow up to £3,000 and, as we offer a flexible way to repay your line of credit, you won't get tied into a long, fixed repayment term. If you're thinking about a £3,000 loan, then, give Drafty a go instead.
How quickly can I get access to the funds with a long term loan?
Again, this will depend on the lender but, as they're not designed for urgent financial situations, you might find that you have to wait a little bit longer to get everything signed off with a long term loan. If you're looking for a fast solution due to an unexpected expense, Drafty's line of credit could be sent to your bank within 90 seconds, once you're approved.
Will I be asked to secure a long term loan?
Some providers might ask you to secure your loan, depending on the product, especially if it's for a larger amount or you have a lack of credit history. This could be with a guarantor or by using an asset to secure your borrowing against. Here at Drafty, we don't ask for any guarantors or collateral, so you won't need to worry about backing up your credit or having to rely on another individual.
What can I use a long term loan to do?
Usually, long term loans are used for larger expenses such as home renovation work or a car purchase, for example, although lenders won't normally need to know exactly for what you plan on using the money. They're not designed for those immediate or urgent expenses such as bills or repairs.
Drafty's line of credit is a short-term alternative that can be used to help to get your life back on track if you're facing an unexpected expense. There's no need to worry; we don't need to know exactly what you'll be using your credit line to do, either.
How long will I get to pay back a long term loan?
Long term loan types are typically paid back over a year or more, but the exact term will depend on how much you borrow and how much you can afford to pay each month. Some lenders could tie you into a fixed repayment term of a few years (sometimes up to 10 or more) and charge a fee if you want to pay back early.
At Drafty, however, we like being flexible. That's why, as long as you keep up with your minimum monthly repayments, you're free to set your own repayment schedule. Plus, there are no fees for paying it back sooner.
Can I get a bad credit long term loan?
This will depend on the lender and your exact situation but there are likely some providers out there who will offer long term loans for bad credit. However, you might find that you end up paying higher interest rates and your overall repayment amount ends up being a lot higher.
At Drafty, we look at each application individually, not just at the numbers on a screen, and we make sure that we offer our line of credit only to those who can afford it.
Do long term loans come with fees?
Some long term loans might come with extra charges such as early repayment fees or late payments fees. If your loan is secured against an asset, such as a house, missing payments could also put this at risk. But with Drafty, we won’t charge you any fees whatsoever - even if you miss a payment. While this is not something that we encourage, we know that events are sometimes out of your control and that's why you won't pay any extra charges with us.
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.