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Borrowing: £300 for 3 months
Total Repayable: £332.40
Interest Rate: 0.18% per day
Interest (amount): £32.40

Representative Example:
Representative 89.7% APR. Based on drawing £1200 and repaying in 12 equal monthly instalments plus interest at an
Annual Interest Rate of 65.7%(Fixed).
Total repayable is £1,601.40.

Getting a loan with bad credit

When you’ve got bad credit, it can be tough to get a loan. That’s not necessarily a bad thing (after all, if you get a loan you can’t afford, that can become very expensive), but it can be really awkward when you’re in need of some extra cash and you can afford to repay it.

Poor credit scores can happen for a few reasons, including if you’ve had difficulty repaying loans, or even if you’ve just not used much credit. That last bit can sound strange, but it basically means that you haven’t shown that you can repay credit, so you might be brilliant at it, but nobody knows.

Credit scores can be affected by a bunch of different things, but the most common ones are payments on mortgages, loans, credit cards, overdrafts and things like that. If you keep on top of your debt repayments, you’re more likely to have a good credit rating.

Types of loans for bad credit

Having bad credit doesn’t automatically mean that you can’t get credit. Often, what it means is that it’s more difficult to find credit at the most competitive prices. This is why secured loans like pawnbrokers are sometimes popular – because they offer loans that aren’t as dependent on credit scores as many others.

This doesn’t mean that all unsecured loans are only for people with the best credit. It just means that bad credit loans can sometimes be more expensive, partly to cover the extra risk lenders take.

That said, some lenders take a more lenient view of credit records than others. In these cases, lenders are often more likely to want to look at different affordability criteria, including a breakdown of your current finances. Some lenders offer bad credit payday loans which are aimed at people with poor credit. With these short term loans for bad credit, you are expected to repay them within a short amount of time (usually weeks or months).

Alternatives to bad credit loans

A credit line is an alternative to a loan. And since that’s what we do, we should really point that out first, shouldn’t we? We do credit lines instead of loans. In fact, we think they’re better than loans.

Other alternatives could include ‘credit builder’ cards , which are basically credit cards with a higher-than-usual APR. They’re more expensive to use, but if you use them responsibly and pay off the outstanding amount each month, they could help your credit rating without causing you too many problems. But if you’re unsure as to whether you’ll be good at repaying it, then it could be a risky approach.

Do Drafty do bad credit loans

We don’t offer loans but a credit line and we don’t offer creditto people with very poor credit ratings – we’re too responsible for that. But we do realise that some people can have less-than-ideal credit and still be financially responsible enough to take on a credit line.

So the Drafty approach is to look at your current financial situation. This will include your credit record, but we’re not just looking at that. We won’t make any guarantees, but we will treat your application the same as we treat everyone else’s. If we think you can take on the credit line and use it responsibly, great! If we don’t, then… we won’t offer you cash we don’t think you can repay. We think that’s only sensible.

If you want to find out, you can apply now. The application doesn’t take long to fill in. We will check your credit record as part of the application, and that can leave a mark whether you’re accepted or not.

Bad credit loan FAQs

What are bad credit loans?

They’re loans aimed at people who don’t have good credit. They can often be more expensive than regular loans as a result.

Can I get a loan with bad credit?

Possibly, although you may find it more difficult than people with better credit. Some lenders will look at your overall financial situation and may take that into account as well.

What are the advantages of bad credit loans?

There aren’t really advantages, as you may not have a lot of choice available. However, most bad credit loans tend to be for shorter amounts of time and tend to be available pretty quickly, as they’re usually online.

What are the disadvantages of bad credit loans?

The main one is the cost – bad credit loans are often more expensive than loans for people who have good credit. It’s important to make sure that you can afford any loans or credit that you take out.

Still not convinced?

Read what our customers say
about us...
based on 2583 Trustpilot reviews

I would recommend this company to
anyone bad credit
or not they treat you
the same
- Jake Sharp, 04/02/2018

How much would
you like to borrow?

89.7% APR

How Drafty Works

Are you looking for a short term loan online because you want something that’s fast and easy to apply for? Then we think you’ll love Drafty. Check out how straightforward it is:


It only takes minutes and you’ll get an
instant decision.

Set a Credit Limit

If you’re approved, you’ll be given a credit limit up to £3,000. You can then use as much or as little as you want. Pay interest only on what you use.

Flexible repayments

You repay a minimum amount every month. Want to repay early? Cool! There’s no charge for that. And we make it easy to do with our app.

Get Cash in Minutes

Use Drafty whenever you need to. We’ll send the cash to your account in minutes.*

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.