Short Term Loans
Are you looking for a bad credit loan? Drafty could help. We consider every application, including if you have a bad credit score or poor credit history. Apply for a loan between £1,000 and £3,000 today. If approved, we will send the money to your bank in 90 seconds. It may take longer to reach your account, depending on your bank’s processes.
Representative 79.9%APR
Representative Example: Given a Representative APR of 79.9%, if you borrow £1000 over 18 months at 59.9% p.a. (fixed), you would owe 18 equal repayments of £85.56. You will repay £1,540.08 in total.
Not all applications will be approved for credit. An offer of credit is subject to status and affordability checks.
Why choose Drafty for bad credit loans?
Fast
Cash sent to your bank in under 90 seconds, if approved. It may take longer to reach your account depending on your bank’s processes.
Varied repayment periods
Repay in 12, 18 or 24 months.
Convenient
Secure online application available 24/7. An instant decision.
What is a short term loan?
A short term loan is a financial product designed to help people manage immediate cash flow needs. These loans are typically repaid over a short period, typically within a few months. However, repayment periods may vary depending on the lender and loan terms.
These loans are meant to be repaid within a few months which is why they are often compared with payday loans.
People often use these loans to address temporary financial needs. This can include unexpected expenses or gaps in cash flow. However, these short time loans often carry higher interest rates or fees compared to long term loans.
Short term loans are mostly unsecured. This means they don’t require the use of assets. Instead, approval is based on the borrower’s income, credit history, and ability to repay.
Why choose a direct lender for short term loans?
Choosing a direct lender for short term loans can ensure a clear and transparent borrowing process. Direct lenders handle your loan application and pay the loan directly into your bank account. They often provide quicker approvals and flexible repayment options.
Drafty is an FCA-authorised direct lender in the UK offering short term loans from £1,000 to £3,000. Our authorisation number is 689378. If you are approved, we will send the cash sent to your bank in under 90 seconds. It may take longer to reach your account depending on your bank’s processes.
Representative 79.9%APR
Eligibility criteria for short term loans
If you are looking to apply for a short term loan with Drafty, you need to meet the following requirements:
- Age: You must be at least 18 years old.
- Residency: You must be a UK resident.
- Income: Be in regular employment with a net monthly income (after tax) of at least £1,250.
- Bank account: A valid UK bank account and debit card is required.
Once you apply, we’ll run credit and affordability checks. We do this to make sure that you can afford the monthly repayments.
Representative 79.9%APR
How to apply for a short term loan online with Drafty
Once you have checked our eligibility criteria, you can apply:
Apply
Click on the apply now button and complete our online application
process. Choose how much you want to borrow. Then, fill in your
personal, employment and banking details. It takes around 15 minutes
to complete (application completion time varies).
Checks & approval
Once you submit the application, we’ll run credit and affordability
checks. This is to see if you can afford the repayments on top of your
existing financial responsibilities. In most cases, we’ll give you an instant
decision.
Get your money
If approved, we will send the money to your bank in 90 seconds. It may
take longer to reach your account, depending on your bank’s processes.
How much can I borrow?
The amount you can borrow depends on the lender and your financial situation. Borrowing limits can range from £50 to £5,000, though some lenders may offer higher amounts.
Your approved amount depends on your income, credit history, and affordability checks.
At Drafty, we also do short term lending. With us, you can get an instant decision on loans between £1000 – £3000.
What can I use a short term loan for?
Short term loans can be used to manage various urgent expenses or unexpected situations. Such as:
- Moving homes
- Making urgent home repairs
- Covering unexpected financial expenses like dental bills
- Fixing your car and other vehicle repairs
- Paying unexpected bills
If you need a loan, check the interest rate and terms first. Make sure you can repay it to avoid financial difficulties.
Can I get a short term loan
with bad credit?
Yes, you can get a short term loan with bad credit. Drafty considers applications from individuals with bad credit too. Traditional lenders focus on credit scores, but we look at your whole financial picture.
Our approach helps borrowers with poor credit histories apply for loans for bad credit and access funds responsibly without further financial strain. For unexpected bills or urgent home repairs, Drafty offers a fair and transparent lending process.
Representative 79.9%APR
Difference between a short term loan and a payday loan
| Short term loan | Payday loan | |
|---|---|---|
| Repayment period | These loans have more extended repayment periods than payday loans, typically within a year or less. This can vary depending on the lender and the terms of the loan. | These are usually due on your next payday, typically within two to four weeks. |
| Loan amount | Depending on lenders and creditworthiness, you can usually borrow a larger amount, often ranging from £50 to £3,000. | These are generally for smaller amounts. Often between £100 and £1,000, and are meant to cover short-term expenses until your next paycheck. |
| Interest rates and fees | Interest rates can be high, but they are usually lower than for payday loans. The loan also may be spread over a longer repayment period. | Payday loans tend to have high interest rates and fees. Resulting in a higher total repayment if not paid on time. |
How do the loan repayments work on Drafty?
Repayments with Drafty are straightforward. You can log in to your online account to check your payment status and history. Payments can be made through a Continuous Payment Authority (CPA). Or, we also accept payments from debit cards, google pay, apple pay and bank transfer.
To pay online, choose the amount, select a payment method, and complete the transaction. Bank transfers require using your Drafty account number as a reference. You can repay early to save on interest without any fees.
Late payments incur a £12 fee and additional interest. This may affect your credit score, so contact us if you’re facing difficulties.
What if I’m unable to repay my loan?
If you’re unable to repay your loan, it’s important to contact your lender immediately. Most lenders are willing to work with you to create a suitable repayment plan or offer alternative solutions.
Missing repayments can affect your credit score, and you may face additional fees. Clear communication with your lender can prevent further financial stress and help find a workable solution.
At Drafty, we understand that circumstances can change. If you’re struggling to repay your loan, we encourage you to reach out to us. As a responsible lender, we’ll work with you to explore flexible repayment options while minimising the impact on your credit history.
Missing loan repayments may lead to additional fees, higher interest rates, and a negative impact on your credit score. All of which may affect future borrowing ability.
FAQs – short term loans
How quickly will my application be processed?
At Drafty, we process the loan applications quickly, often providing an instant decision. If you are approved, funds are typically transferred to your bank on the same day, usually within 90 seconds. It may take longer to reach your account, depending on your bank’s processes.
Can I repay my short term loan early?
Yes. At Drafty, you can repay your short term loan early without any additional early repayment fees. When you sign into your account, you can check how much you still owe. You can then make this payment online. Early repayment reduces your overall interest cost, and you will end up paying less in total.
How do short term loans work?
Short term loans provide quick financial assistance, repaid over a manageable period in monthly instalments. Unlike payday loans, they offer flexibility, fixed repayment schedules, and no hidden fees, ensuring you can afford each repayment. Most lenders approve loans based on income, credit history, and repayment ability.
What is the best loan for short term?
The best short term loan depends on your needs. Drafty offers loans from £1000 to £3000 with transparent interest rates, no hidden fees, and fixed monthly instalments. You can even repay your loan early with Drafty without any extra fees. This makes it ideal for handling unexpected bills or short term finance.
Can a short term loan affect credit score?
Yes, a short term loan can impact your credit score. Timely repayments can improve your credit report by showing responsible borrowing behaviour. However, not following the repayment schedule, missed, or late payments may lower your credit score and negatively affect your credit history.
Can a business take short term loans?
While Drafty does not offer short term business loans, there are lenders who specialise in short term business finance. These loans can help businesses address cash flow challenges, cover operational costs, or manage unexpected expenses. A short term business loan is typically designed for flexibility, offering repayment schedules suited to a business’s financial situation.
Are short term loans risky?
Short term loans are safe when borrowed from a responsible direct lender like Drafty. Transparent terms, manageable repayment amounts, and no hidden fees reduce risks, ensuring borrowers can handle their financial obligations confidently without unexpected costs.
Are short term loans worth it?
Short term loans can be worth it for addressing urgent needs like unexpected bills or cash flow issues. Drafty’s transparent terms, instant decisions, and no hidden fees ensure a reliable borrowing experience for UK residents.
Please think carefully about whether Drafty is the right solution for you. This is even more important if you're in financial difficulty. If we don't think you can afford to repay your credit, we won't be able to approve you. We'll look at your current finances and credit history before we decide whether to give you credit. Failure to repay could impact your credit file.