Peerform Personal Loans Review


Peerform is a leading peer-to-peer lender in the industry offering loans to borrowers with bad credit. One of the tools used to offer loans include the Peerform Loan Analyzer which takes a more holistic approach to determine your creditworthiness instead of relying on your credit score alone.

Just as other peer-to-peer lenders operate, you’ll get a grade level as calculated from your credit and financial information and the interest rates you’ll pay will be based on the grade.

Later on, investors will fund your loan through Peerform’s platform. Several investors can fund your loan or a single investor can fund 100% of the loan. This process might seem quite long, but if you compare this to other lenders, it’s quick. Continue reading to find out more about Peerform personal loans.

Peerform Personal Loans

Irrespective of your credit history, you can still qualify for a personal loan from Peerform. The loans range from $1,000 to $25,000 and you don’t need to put up collateral against the loans since they are personal loans.

The APR rates charged on Peerform personal loans are fixed and they start at 7.12% and go all the way to 29.99%. In addition to the rates, you’ll also have to pay for origination fees which will cost you about 1% to 5% of the total loan amount before the money is sent to your account.

Each loan will take about three years during which you need to repay the loan. However, you can pay off the loan early without the fear of early payment penalties. Also, you can use the personal loan on any project you wish such as home improvements, moving expenses, weddings or medical expenses.

The most common use of these loans is debt consolidation. However, you need to make sure you get the best deal on interests before taking out the loan.

About the Borrower

Borrowers won’t go through a list of requirements when taking out a personal loan at Peerform. However, you’ll need to have a minimum score of 600 to get a loan. This is in addition to a credit history at least a year old. On the bright side, Peerform doesn’t require a minimum income amount and you’ll need to keep your debt to income ratio at 40% and below instead of the usual 30%.

These are only the basic requirements, but it doesn’t mean you can’t take out a loan if you don’t meet some of the requirements. The typical borrower makes about $85,000 per year and has a credit score of 665.

According to Peerform, they target borrowers whose credit score s fall in the mid-600s. in addition, the DTI falls below the minimum, standing at about 19.3%.

The Application Process

Before you start on the application process, Peerform gives you a chance to check your rate using a pre-approval form. At this point, the lender only performs a soft credit check, which means you can take advantage of this step. After approval, the lender will perform a hard credit check to verify the details about your credit.

After making a formal application, you’ll then select a monthly payment amount and loan terms from a range of loan options. Afterward, your loan is then put up on the marketplace for investor funding.

As the funding continues, you’ll need to provide supporting documents to prove your identity as well as your financial information. Some of the documents include bank statements, pay stubs and a driver’s license. The entire application process can take about three business days to two weeks. Therefore, you need to keep this mind while borrowing money.

What Next After Approval

After funds disbursement, you can start making your monthly payments. However, keep in mind that you’ll still need to cater for some fees including $15 fee for an unsuccessful payment. On top of that, you’ll also have to pay a fine for late payment.
This fee will be charged only if you delay in making your payment by 15 days. The fee is set at 5% or $15, whichever is higher. Also, if you decide to make your payment by check you’ll have to pay a $15 processing fee.

The last step is to make sure your account always stays updated. If the account is managed by a third-party agency, you’ll have to pay up to 33% in collection fees for the total amount collected on a claim. If you’re looking to improve your credit score, then taking out a loan at Peerform is a good idea. This is because the lender reports to TransUnion. Simply make on-time and consistent payments and you’ll be on your way to a good credit score.

Additional Features

Peerform focuses on close to prime borrowers with an average credit instead of those prime borrowers with stellar credit. The lender uses a proprietary algorithm to help them determine your creditworthiness instead of using your FICO score alone.

Peerform is interested in whether you can pay the loan or not. This is different from other lenders who will look at your credit score and use it to determine the risk you pose.

Peerform: The Genesis

Peerform was started by former Wall Street executives in 2010. Their main aim was to come up with a platform where people can access credit with low interest rates. At that time, banks were strict when it came to lending due to a financial crisis. Peerform took advantage of the situation to introduce non-conventional lending.

From 2014, this P2P lender has been issuing personal loans and is now turning its attention towards institutional lenders to provide funding for the loans. This is to avoid having investors spread out their investments across a number of loan fractions.

What You Should Know Before Taking Out a Loan at Peerform

If you believe you’re ready to take out a loan at Peerform, you need to follow the following tips. They will help you to come up with better and informed decisions about your finances which will also go a long way in improving your chances of approval.

Scrutinize Your Finances

Before diving into the application process, you need to take a deeper look at your personal finances. This includes restructuring your finances to achieve maximum success.

It doesn’t mean you have to wait for your credit score to jump up a few points. You can make some few changes to make sure you get the desired results which include qualifying for the Peerform loan. You can use the following tips to tweak your financial life.

    • Analyze your debt to income ratio. This is a figure that helps lenders determine your ability to pay off a loan. It’s easy to calculate this ratio.

First off, add up all monthly financial responsibilities such as credit card minimums, student loans, car payments and your mortgage. Afterward, divide this figure by your gross monthly income. This is your income before you pay your health insurance, taxes and any other deductions. The final outcome is what is called the debt to income ratio.
Let’s look at a more practical example. For example, if your total debt is $3,000 and your gross income per month is $7,000, your debt ratio will stand at about 40%. If your ratio falls at 40% and below, then you qualify for Peerform’s loans.

  • Check your credit report for any negative reporting and then check your credit score. In fact, when checking your credit report, make sure you go through the reports from all credit bureaus to ensure everything is in perfect order. You’ll have to pay for these reports although you can get them through a credit card for free.

With this information, you can paint a clear picture of your financial situation now and in the future. It will also help you get a pre-approval and a subsequent approval from Peerform.

Get Your Documents Ready

The moment you decide to take out a loan, not only from Peerform but also from other lenders, you need to make sure you have all relevant documents ready. With such preparation, you’ll help speed up the process, especially if you’re in dire need of the money.

Some of the documents you’ll need include tax statements to show tax compliance, a few pay stubs, your bank statement going as far back as six months and your driver’s license to prove your identity. On top of that, you’ll need to submit employment and income verification.

Get the Best Offer

Peerform is a leading P2P lender offering loans to borrowers with bad credit. This might be the case, but you have nothing to lose by checking out other offers.

This is where your research skills pay off. Take some time off to compare various lenders like the online lenders and traditional lenders such as banks to see what offers they have. You can do this using a comparison website.

Most of the lenders in the industry only perform soft checks on your credit. This won’t affect your credit score in any way, at least in the pre-approval stage. However, you need to confirm with your lender whether this is the case before making your application.

If your bad credit takes a fall of between 10 and 20 points, this can be devastating for you. This is because Peerform grades borrowers’ financial abilities and sets them into various categories with respective interest rates.


Peerform is a fantastic peer-to-peer lender because of how they determine your creditworthiness. Their holistic approach is beneficial to borrowers with a bad credit. However, as much as they offer favorable terms, it’s important for you to look around for other deals online.

Copyright © 2020 | All Rights Reserved