Can’t see it mentioned anywhere else.
I got a loan last year with updraft - never heard of them before applying.
They use access to your bank / credit accounts to base a decision on how much they can lend and over what term.
All seems good and you can overpay if you wish.
New product unveiled this month similar to Monzo flex, however it’s using credit card transactions instead of debit card transactions to provide refunds.
Spend £100 or more on your credit card and then select to have that amount loaned to you and they will send you the cash to pay off the card. 3,6,9or12 month terms.
Seems straight forward I suppose.
I’ve tried it and will see what impact it has on my credit file.
They ask you to set up direct debit details with one of the banks you have already connected through open banking and send to that for it to then be paid off.
Now I am well aware that there will be raised brows.
This could have the potential for someone to take the extra money and spend it.
I think they are looking at relative low ‘credit levels’.
I’d not heard of these till this thread. @Drew, you seem be content with the decision to obtain a loan from them, but I wonder why the business model is so unusual (strange?).
It feels a bit like Dozens’ model for savings/investment. Very different to the pack.
It seems pretty much just like a consolidation loan service with potentially more friendly and accurate criteria for lending.
Not sure about the “pay on credit and then finance that with a loan purchase”. Guess it’s a way to shift debt onto a longer term plan with a lower rate, rather than sitting on CC rates?
brows.