Please refer to our Cookie Policy for important information on the use of cookies. By continuing to use this website, you agree to this.  

What is the difference between a line of credit and a loan?

Whether it's a short-term loan (like a payday loan) or a longer-term loan (like a mortgage), a loan is for a set amount of time. Once you've paid it back, it's done.

A line of credit is different. As long as you pay the monthly minimum (which covers your interest and some of the cash amount used), you pay the rest back how and when you want. Once you've paid it back, the credit is still there for you to use at any time.

If the amount of credit we make available to you changes at any time, we'll let you know.

Was this helpful?

34 people found this helpful

Representative 89.7% APR

Related Questions

Can't find what you're looking for? Contact Us. We're happy to help!

Back to FAQs
Drafty is a credit line with a Representative 89.7% APR, and a maximum APR of 91.2%. If you draw £50 against your credit line at 89.7% APR, it would be paid off in 6 months for a total of £60. There are no additional fees. There is no minimum repayment period and no maximum repayment period as long as you continue to repay the minimum payment amount. We don't offer fixed loans under 60 days.
CALL

0203 365 0135#

Loans : Short Term Loans  | Bad Credit Loans  | Same Day Loans  | Quick Online Loans  | Overdraft Comparison
Compare Loans : Safetynet Credit  | 118 118 Money  | Vanquis Credit Card  | Aqua Card  | Amigo Loans
Personal Line of Credit - Drafty - 4.8 stars out of 5 based on 4458 reviews  consolidated by Google from Trustpilot.com and Reviews.co.uk.
5 stars - " Very fast and easy to use."

*Subject to credit line approval, you will receive cash through our Express Cash Transfer option for free if supported by your bank. We can send the cash to your bank in under 90 seconds after final approval of your credit line, subject to an assessment of affordability and credit worthiness. The time that it takes for cash to appear in your account will depend on your bank's policies and procedures.

#Call charges apply. Standard charges from BT landlines, mobiles and other providers may vary.

Responsible Lending: Carefully consider whether a credit line is right for your individual financial situation. Borrowing of this type is an expensive form of credit that may be appropriate for short term financial needs but which is not appropriate for longer term borrowing or if you are in financial difficulty. All credit line applications are subject to status, terms and conditions and to satisfactory passage of checks on credit worthiness and affordability.

Drafty is a trading name of GAIN Credit LLC

Contact Address: Wisteria Grange Barn, Pikes End, Pinner, London, United Kingdom, HA5 2EX, E-mail: info@drafty.co.uk | Registered Address: 251 Little Falls Drive, Wilmington, DE 19808, USA.| Registered in the State of Delaware,USA | Registration Number: 4124111 | Authorised and Regulated by the Financial Conduct Authority. Registration Number 689378