Compare Line of Credit Loans 2018 | New Revolving Credit Lenders

Compare Line of Credit Loans

Intro…

A personal line of credit works in a similar way to a modern overdraft through your online banking. Alike an overdraft, there will be a set determined limit that you’ll have access to 24/7. There no set repayment whereby interest is charged for however long that you borrow for. The main lender in this niche however has a price cap. The bad news is that the choice in this sector is limited. There was 4 options, but MyKredit has recently restructured their product that leaves us with 3 choices. We felt however that it was important to cover this micro niche, since it receives little attention elsewhere and the product quality really is superior.

Surely it is better to know that you have pre-approved funding, to be used whenever you need and for however long you desire. The competitive interest aids this. The 3 active firms also charge no late fees whilst the 2 Indigo Michael brands include protection on overdrafts. Outside of the dedicated featured services, personal lines of credit aren’t made available in the UK. They are however common overseas, with HSBC offering them in select countries. Over in the United States, Speedy Cash also has a dedicated product. We do expect local companies to adapt to this model over the years ahead. SafetyNet is now the 3rd most popular subprime brand and so rival firms will surely follow their pathway.

Compare Line of Credit Loans 2018…

Alexa Traffic Rankings & Facebook Fans…

1) SafetyNetCredit.com: #12,021 | 3630+
2) Drafty.co.uk: #53,557 | 220+

Global Rank Only…

3) Tappily.co.uk: #16,479,383 | No Page

*Alexa (UK) rankings and Facebook counts are shown as indicators of market share and web popularity.

Cheapest Deals…

/£100 (7 days) | Range: £1.26-£5.60

1) DRA: £1.26
2) TAP: £2.38
3) SNC: £5.60

/£100 (30 Days) | Range: £5.40-£24

1) DRA: £5.40
2) TAP: £10.20
3) SNC: £24

/£300 (3 Months) | Range: £48.60-£96

1) DRA: £48.60
2) TAP: £76.50
3) SNC: £96

/£300 (6 Months) | Range: £76.50-£97.20

1) TAP: £76.50
2) SNC: £96
3) DRA: £97.20

*Drafty and Tappily target fair to good scores as you’d guess from those competitive deals. Drafty’s interest is fixed at 0.18% daily. Tappily’s is higher at 0.34%, but this is capped at 75 days. SafetyNet’s rate meets the industry cap at 0.8%, but they then enforce their own cap at 40 days. This is why their value improves greatly for longer term borrowing. They are open to consider all circumstances.

Most Experienced and New Line of Credit Lenders…

2014…
SafetyNetCredit

2016…
Drafty

2017…
Tappily

Total Brands = 3.

*MyKredit who has now moved away from this sector had launched in 2015.

Weekend Line of Credit Loans: Open Saturday and Sunday…

Sunday…

1) Drafty: Sun (7am-10pm)

Saturday…

2/3) SafetyNet: Sat (9am-5pm)
2/3) Tappily: Sat (9am-5pm)

*Remember that once you have been approved you’ll be able to access funding 24/7 across each of the brands. The times noted are important as far as it goes for first time applicants who’ll need to get the initial green light before the facility is provided.

Niche Queries…

Alternative 24/7 Instant Loans: Tech-driven lenders like 247Moneybox, MyJar, Wonga etc may be able to send funds across 24/7, but this is subject to approval. There can always be flags that wouldn’t be dealt with outside office hours. This is why it is important to choose a lender that is open on Saturdays and Sundays (ideally over extended hours). There was a time when the likes of Lending Stream, Pounds to Pocket, QuickQuid and Wonga all operated 24/7, but they all opted to downsize. It is now rare to find a provider open all hours. Outside of subprime lending, 118 118 Money remains open around the clock.

Best Overdraft Alternative: We’d consider the 3 featured services to be well suited alternatives. SafetyNet has the higher acceptance rates, but they only lend £500 max to new and returning customers. Protection on overdrafts is built in and flexible advances are available (you can request anything from £20 onwards in £1 increments). Their pricing also gets very competitive once their cap kicks in. Tappily’s service sees improved funding up to £2500 and their rate is lower, as well as that added protection. No such feature is seen at Drafty, but they offer £3000 (new) and £5000 (returning). Their daily interest is excellent for shorter term borrowing needs. You don’t pay late fees through all 3 sites.

Unauthorised Overdraft Protection: Indigo Michael’s (SafetyNet/Tappily) each include overdraft protection. Customers must grant online banking access (read-only). The mechanism can be switched off. When it is on, they’ll monitor your activity and when any payments take you over a set determined level an instant transfer will be initiated. This will prevent those excessive usage fees charged daily. You could alternatively borrow to prevent returned item fees. Approved overdrafts generally deliver improved value. There are exceptions though such as Santander who charge £1 (<£2000), £2 (£2000-£2999.99) or £3 daily (£3000+). This would pitch £100 across 7 days at £7. In contrast, Drafty's is (£1.26), Tappily's (£2.38) and SafetyNet's (£5.60). The value on Santander's £7 is much worse when you consider that this same charge would be payable on any amount taken above their £12 buffer.