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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.

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Representative 89.7% APR

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.