Drafty’s means of providing credit to its customers is different from many short-term lenders. With Drafty, you are approved for a certain limit and then can borrow from this as and when you need to. If you don’t use any of the cash, then you don’t pay anything back. The lender doesn’t consider itself to be a loan provider but instead provides a ‘line of credit’.
Before signing up for any kind of credit, it’s a good idea to shop around first. Getting an interest rate and payment options that work for you is essential when dealing with a short-term loan and if you’ve been considering Drafty, this guide looks into how a loan from Sunny compares.
Am I eligible for a loan from Sunny or Drafty?
To be deemed eligible for a line of credit with Drafty you must be a UK resident and at least 18 years of age, with a monthly income of £1,250. You’ll also need a debit card and an active bank account.
Sunny’s requirements are similar: we require that you are at least 18 years old, a UK resident and have a regular income. You will also need to provide the history of your addresses for the past three years, not be bankrupt and have a mobile phone and email address. You can check your eligibility to find out how likely you are to be approved for a Sunny loan here.
What is a line of credit?
A line of credit grants you access to an amount of money that you’ve been approved to borrow, and then you can dip into this as and when you need it, up to that limit. A line of credit is a way to borrow on an ongoing basis, where you usually pay interest on the amount you have outstanding at any given time, rather than your full credit limit.
Is a line of credit a good idea?
As with all kinds of borrowing, there are some important things to consider before you take the plunge and borrow money using a line of credit. The checks you may be asked to go through, and the fees you may be charged are important considerations. It is particularly important to look at the consequences if you were to miss or make a payment late and whether the repeat access to your credit limit could mean repeat markers on your credit report.
Once you’ve been approved for a line of credit with Drafty, you can borrow up to the limit they set, when you need to. You will continue to have access to your line of credit as long as you keep up with at least the minimum payments due. Once you’ve repaid what you borrow in full, your account will remain open so that you can borrow from your limit again if you need to, with no further checks.
While this is convenient and minimises the impact on your credit score, it offers little protection should your circumstances change and you keep borrowing. And remember, that the responsibility to make sure you can afford to repay what you borrow is ultimately yours. After all, nobody knows your finances like you do. But, lenders do have a duty of care to ensure that your borrowing is affordable for you as well. At Sunny, we allow you to have up to four loans at the same time so that if you find you need to borrow again, the option is there.
You will be asked to submit an application form which, once we have your details on file, will be pre-populated ready for you to check, and as a responsible lender, we will make a credit and an affordability assessment for each loan you apply for. You will only have the option to apply for further loans if your previous borrowing has been repaid on time.
But Sunny is a payday loan provider, right?
Here at Sunny, we don’t consider ourselves to be a payday lender. Our short term loans are an alternative to a payday loan and line of credit. They are flexible and as long as you pass our affordability and credit checks, the funds can be with you quickly.
We don’t charge fees and we even give you five days to change your mind**without having to pay any interest. This means you can call us to return what you’ve borrowed in the first five days after receiving your loan, and not pay a penny of interest.
The interest we charge is capped in line with the Financial Conduct Authority’s (FCA) regulations on the cost of short-term and payday loans. In addition to a capped daily interest rate, you will never pay more than double the amount you’ve borrowed. With Sunny, because we charge interest daily, you will save on interest if you pay back what you owe early.
How do Sunny and Drafty compare?
We’ve broken down the key elements to consider from each lender and how they compare.
|Any fees?||Sunny does not charge fees, which means you won’t pay for anything extra beyond the interest on the amount you have borrowed.||Drafty doesn’t charge fees.|
|How much can you borrow?||£100 – £2,500||£50 – £3,000 (£5,000 for existing customers)|
|How fast is the cash transferred?||Sunny can get the money you need transferred into your account within 15 minutes once your application is approved.||Drafty claims to transfer cash in 90 seconds of your line of credit being approved.|
|Weekend transfers?||Sunny can approve and fund loans 24/7, so whatever the emergency you can get the cash you need without delay.||Drafty allow you to apply for a line of credit with them 24 hours a day, 7 days a week.|
|Can I make early repayments?||Yes, you can pay back early and save money on interest by doing so.||Yes, you can pay back what you’ve borrowed earlier with no fees.|
|Can I check my eligibility before I apply?||Yes. With Sunny you can check your eligibility for a loan before committing to an application.||No|
How do I apply for credit from Sunny and Drafty?
Both lenders allow you to apply for a loan online by filling in a form and supplying any further documents required. You will receive an instant decision from both and if approved the money could be in your bank account fast.
Sunny will give you a decision on your application within seconds, so you’ll know straight away if you’ve been approved for the emergency cash you need.
Comments from Sunny customers
Sunny offers a service that our customers love. That’s why we have an excellent TrustPilot score** and some great testimonials. You can see these below, to help when making your decision.
Think Sunny is the best option?
If you think Sunny offers the product you need, with a structured repayment plan and fair checks each time you wish to take on a new loan, then apply today and receive an instant decision. If you have any questions before you apply, speak to our team, who will be happy to answer your questions.
Looking for alternative lending options?
Want to know more about Sunny and our alternatives to other lenders? Take a look at our in-depth guides below, to help you make a decision when you need emergency money.