No extra fees, no interest
Transparent and fixed pricing
Representative for total amount of £1000/year, Rate of interest 0% p.a. (fixed). 43.1% Rep. APR Total amount payable £1,120.
Drafty is an alternative to payday loans, overdrafts and credit cards, registered in the US and based in Leicester, England. They offer credit lines - a pot of cash that can be reused, based on the concept of signature loans. You can apply even if you have bad credit. If approved, you’ll be given a credit limit of up to £3,000 and can borrow up to that amount. Drafty claims that any money you request will be transferred to your bank account within 90 seconds. Instead of fixed-fee lending, which prevents a debt spiral, Drafty charges interest on any money borrowed, with an annual interest rate of 65.7% and a REP APR of 89.7%. The more you borrow, and the longer you borrow for, the more debt you’ll need to repay, and the more it could affect your credit score.
You can borrow a maximum of £3,000 with a Drafty credit line. The amount offered when eligible is a personalised amount up to £3,000, based on various factors including the borrower's credit history. Minimum monthly repayments are calculated on the amount of credit used. This is up to 6% of the money owed, and daily interest of 0.18%. Each month, you have to pay back the minimum monthly fee, and have the option to pay more too - this enables customers to pay back their loans more quickly. While you don’t have to pay to be given the money, you have to pay interest when paying it back. The longer you take to pay it back, the more interest you’ll accrue. With an annual interest rate of 65.7% and a Rep. APR of 89.7%, you could pay around £1601.40 to borrow £1200. While Drafty doesn’t charge late fees, missing a payment will be recorded on your credit file and can negatively affect your credit score.
Focused on helping people build financial stability, Creditspring was founded in 2016 to provide financial reassurance without the risk of a debt spiral. Creditspring provides cash when you need it and peace of mind when you don’t with no-interest credit building loans (REP APR 43.1%) and monthly health check-ups. Anyone can apply as there are options to suit everyone - whether you want help building your credit, a small loan or insurance against unexpected expenses. You’ll never be charged interest on our fixed-fee loans. Instead, we charge a small membership fee that allows you to access the loans - think of us as the Netflix of money. Our membership model allows us to provide you with a clear understanding of what you’re borrowing and how much you owe; you’ll never be charged more than you were expecting, and our fixed-fee lending eliminates the opportunity for spiralling into debt. Paying a small monthly fee has another incredible benefit - it builds your credit. Instead of resorting to credit cards, becoming a Creditspring member and paying the monthly fee has a positive impact on your financial health, as the payments are recorded on your credit file and can boost your credit score.
If you’re looking for a loan that doesn’t charge a daily interest then Creditspring is a great alternative to Drafty. All our memberships will help you build your credit score This means you will not be charged for anything that is not stated on your account. At Creditspring we aim to work with our members in order to reach their financial goals. We charge a small membership fee each month- that is dependent on the membership you are eligible for. With a Step Membership you will pay £5 per month and have access to £100 for the first advance and £200 for the second advance (REP APR 87.5%). With a Core Membership you will pay £8 per month and have access to £250 for each advance (REP APR 77.3%). With a Plus Membership you will pay £10 per month and have access to £500 for each advance (REP APR 43.1%). Reporting both your monthly membership fee and repayments to credit rating agencies you can build your credit with any of our memberships.
Skip all the confusion that comes with calculating daily/monthly interest! At Creditspring everything is clearly stated for you and you will receive regular reminders, so you can stay in control of your financial health. Start your journey with Creditspring today and start building your credit for a brighter future.