Updraft assesses whether a proposed monthly repayment is sustainable based on a customer’s actual financial circumstances. The assessment considers income, regular household spending, existing credit commitments, and information on the customer’s credit file. A credit score is one part of the assessment, but it is not used on its own.
The customer provides information about income and expenditure during the application process. With permission, connected accounts can also provide up-to-date information about balances and transactions through open banking. This helps identify regular commitments, existing card balances, overdraft use, and available income after essential spending.
An initial eligibility check uses a soft search to indicate whether the customer may qualify and what rate and repayment might apply. A soft search does not affect the customer’s credit score or appear to other lenders as a full application. It is not a guarantee of approval.
If the customer proceeds, the lender carries out a full application and credit assessment. The proposed loan amount and term are considered alongside the customer’s income, spending, and current borrowing. The monthly repayment, arrangement fee, term, and total amount repayable are shown before the customer makes a final decision.
For a loan used to pay off credit card debt, the money is generally sent directly to the relevant card providers so the balances are cleared rather than simply moved elsewhere. The customer remains responsible for making the new fixed monthly repayment for the agreed term. Any existing accounts not included in the application remain part of the affordability assessment and the customer’s wider budget.
Affordability can change if income falls, essential costs rise, or further borrowing is taken out. Customers who are already struggling to meet priority bills or credit repayments should seek independent debt advice from organisations such as StepChange, National Debtline, Citizens Advice, or MoneyHelper.