Peerform is a marketplace lending platform that connects borrowers and lenders. If you are paying off credit card debt or other loans at high interest rates, Peerform is worth a look because it is designed for borrowers who wish to consolidate debt or need a personal loan to pay for costly events, such as a wedding or moving home.
As a peer-to-peer online platform, Peerform doesn’t actually fund the loans but instead connects borrowers to investors, who lend money with the goal of earning a return that beats the yields offered by other investments.
Beyond simply connecting borrowers and lenders, Peerform assesses the risk of each borrower by looking at risk factors such as debt-to-income ratio, credit score, and prior payment delinquencies.
As a platform that welcomes borrowers with lower credit scores – versus SoFi which exclusively targets super-prime borrowers – Peerform accepts a broader range of customers so, even if you have less than stellar credit, you stand a decent chance of being approved.
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Peerform Personal Loans: Spotlight
4 out of 5 stars
via Peerform secure site
Why Choose Peerform Personal Loans?
Whether borrowing to pay for a wedding or simply looking to consolidate debt, Peerform can help you access capital in 2 weeks or less, though don’t expect to pay rock bottom rates.
If you are looking for a loan to pay for a wedding, medical expenses, or a car, Peerform can loan you anywhere from $4,000 → $25,000.
Personal loans can be used for a wide variety of categories, including moving and relocation, home improvement, and debt consolidation.
Because Peerform accepts customers with so-so credit who may be paying high interest rates elsewhere, debt consolidation is a popular choice to lower overall monthly interest costs.
You can get a free quote quickly for a fixed rate loan that varies from 5.99% to 29.99% depending on your risk category, which will be anywhere from AAA to DDD.
In the A-category, the lowest risk borrower is categorized as AAA, and the highest risk borrower is classified as A. The AAA borrower pays the lowest APR rate of 5.99% among all borrowers while the A borrower APR rate is 15.59%.
In the B-category, the APR rate ranges from 17.13% to 23.77% while in the C-category the range is from 25.31% to 29.40%.
Borrowers categorized as DDD pay the highest rate of 29.99%.
|Peerform Personal Loan||Amounts|
|Loan Amount Range||$4,000 → $25,000|
|APR Range||5.99% → 29.99%|
|Origination Fees||1% → 5%|
|Funding Timeline||3 → 14|
What Are The Minimum
Peerform conducts a thorough check on your finances to gauge what risk category you fall into and what interest you will pay. Your credit score, income and debt levels are among the primary indicators to assess risk.
Peerform looks at a wide variety of financial metrics to assess borrower risk, including FICO Scores, debt levels, income, credit profile, and bank account information.
You must have a minimum FICO Score of 600 in order to be eligible for a loan on the Peerform platform.
Excluding mortgage debt, your debt-to-income ratio must be less than 40%. And Peerform will verify your income claims using two recent pay stubs as well as tax documentation. No minimum income level is demanded.
Like most other platforms who need to accurately assess borrower risk, Peerform relies on consumer reporting agencies to check on your financial history, including:
- Current delinquencies
- Tax liens
- Non-medical related collections over prior 12 months
Plus, you must have at least one open bank account and a minimum of one revolving account ever opened.
How Does Peerform
When you apply for a loan, Peerform will verify your personal information to minimize the risk of fraud.
After you submit your information, Peerform will verify that you are who you say you are using some standard checks.
The idea is also to reduce fraud which is a big challenge lenders face.
|Twilio||Verifies phone number|
|IRS Tax Returns||Verifies your income claims|
|Bank Account Active||Verified using small debits and credits|
|MaxMind||Verifies borrower IP geo-location|
|Lexis Nexis Instant Authentication||Used for higher risk applications|
Peerform Interest Rates & Fees
Peerform won’t charge you penalty fees for paying off your loan early though you will be dinged with fees for paying late and for unsuccessful payments.
|Fixed APR Rates||5.99% → 29.99%|
|Origination Fees||1% → 5%|
|Prepayment Penalty Fees||0|
|Late Fees||$15 or 5%|
(great of payment amount)
|Personal-check Processing Fees||$15|
|Payment Failure Fee||$15|
Pros and Cons
If you need money but don’t have great credit, Peerform is worth checking out. And if you have top notch credit, you may be eligible for low interest rate personal loans to pay for a wide variety of events, such as weddings, moving, or even a new car.
|Peerform Pros||Peerform Cons|
|✅ Low Credit Score Applicants: If you were denied for a loan elsewhere, you may be eligible at Peerform provided your credit score is at least 600.||❌ Fees: You won’t be hit with early payment penalty fees but you will get hit with fees when paying late or if your payment is unsuccessful.|
|✅ Soft Credit Check: You can check your loan rate without it hurting your credit score because only a soft credit check is conducted.||❌ High Rates: Unless you fall into one of the top tier categories, your APR rate is likely to be quite hefty, though it may be lower than your credit card rates.|
|✅ Fast Application Process: Shopping for rates and loan approvals are both fast. Checking rates is almost immediate while getting approval can take anywhere from 3 → 14 days.|
|✅ Payment Postponement: You can inform Peerform that you need a little extra time to pay your loan and enjoy a grace period of up to 10 days as long as you notify them a few days before the payment is scheduled to be made.|
|✅ Consolidate Debt: If you are paying high interest rates elsewhere you can consolidate your debt into one potentially lower payment.|
|✅ Wide Variety Of Uses: Personal loans can be used to purchase a car, finance a move, pay for a wedding, consolidate debt, and wide variety of other uses.|
If you struggled to get approved for a loan from a bank or unsuccessfully negotiated lower rate payments with your credit card company, Peerform may be a great choice because it is designed to help lower credit borrowers to consolidate debt.
You can also receive personal loans to pay for others costly events, such as weddings, home improvement, or moving. The rates aren’t as low as you might wish unless you have a top notch credit rating but they may very well be a good bit lower than what your credit card company charges you.
When you check your rates your credit score won’t be penalized and you can be approved for a loan in as fast as a few days and generally not longer than a couple of weeks.