2020 Peerform Review – Personal Loans
Peerform Review Summary: Peerform offers personal loans through peer-to-peer lending, which means they connect borrowers with investors who are willing to extend them loans. Borrowers have to meet a minimum set of requirements, which include a FICO score of 600+, a Social Security number and an active bank account, in order to qualify.
Peerform will do a soft credit inquiry to see if an interested borrower meets their minimum standards for a loan. If they do, Peerform assigns them a grade based on their credit, income and other factors. This demonstrates the risk of the loan for investors. The borrower may also be able to pick from several options of loan lengths and corresponding rates. From there, the borrower posts their “loan inquiry” on the Peerform marketplace for two weeks and waits to see if it gets funded. If the loan gets successfully funded, Peerform does a hard credit inquiry to finalize the process. Assuming the loan gets approved, the borrower then makes payments to Peerform, which distributes money to the investors.
Peerform offers three types of loans: 3-year personal loans (for any purpose), 3-year debt-consolidation loans and 5-year debt consolidation loans. Interest rates vary between the three types, but Peerform’s lowest rate is 5.99% and its highest is 29.99%. Peerform also charges origination fees of 1% to 5% of the loan amount.
Read on to see how WalletHub rates Peerform loans in our three key categories: Terms, Requirements & Application, and Reviews & Transparency. You’ll also see how they compare to other lenders.
Peerform Personal Loan Terms
|APRs||5.99% - 29.99%|
|Loan Amount||$4,000 - $25,000|
|Loan Terms||3 or 5 years|
|Origination Fee||1% - 5%|
|Late Fee||$15 or 5% of payment, whichever is greater|
|Minimum Credit Score||Bad*|
|Minimum Income||Not disclosed|
|Loan Purpose||Debt Consolidation, Home Improvement, Big Purchase|
|Time to Receive Loan Money||1 - 14 days|
Peerform Loan Rates, Fees & Other Terms
Category Rating: 3.8/5
Each type of Peerform loan has a different interest rate range. For three-year personal loans, it’s 5.99% - 29.99%. For three-year debt consolidation loans, it’s 5.99% - 25.05%. And for five-year debt consolidation loans, it’s 12.57% - 21.95%. The better your credit score is and the more money you make, the better chance you’ll have of qualifying for a low Peerform interest rate.
An APR of 5.99% is one of the lowest rates on the market, but Peerform’s maximum rates aren’t the cheapest around. However, that’s to be expected, considering Peerform will lend to people with bad credit. Peerform has fixed interest rates, so you’ll have the same rate during the entire payoff period of the loan.
Like its APRs, Peerform’s origination fees also depend on the type of loan. For both three-year personal loans and three-year debt consolidation loans, the fee can range between 1% and 5% of the loan amount. Five-year debt consolidation loans have a flat fee of 5%.
Peerform will also charge a fee for late payments of $15 or 5% of the payment amount, whichever is greater. But they will only charge this fee if you are 15 days late. In addition, Peerform has a $15 unsuccessful payment fee and a $15 fee if you pay by check rather than by direct deposit. There is no prepayment fee (a fee for paying off your loan early).
Peerform has decent rates and offers reasonable funding, with $4,000 to $25,000 for 3 or 5 years. Unfortunately, they lose a few points for their origination fee.
Peerform Requirements & Application Details
Category Rating: 3.5/5
To qualify for a personal loan from Peerform, you will need to live in one of the 45 states in which they do business. The only states where they don’t offer loans are Connecticut, North Dakota, Vermont, West Virginia and Wyoming. You also must have a credit score of at least 600. Peerform does not mention any minimum income requirement, but you will have to provide proof of income on your application. You don’t need to be employed, as long as you have some alternate form of income.
Applicants for Peerform personal loans must be a minimum of 18 years old. They must also have a Social Security number and be a U.S. citizen or permanent resident of the U.S. All applicants need to have an active bank account as well.
Peerform has a pre-qualification process, which they call their “borrower registration.” After you put in some personal information like your address and income, Peerform will let you know whether you meet their minimum requirements and what rates you qualify for. This process only uses a soft credit inquiry, so it won’t hurt your credit score. From there, you’ll have the opportunity to list your loan offer on the Peerform site to see if investors will lend to you. If your loan receives the required amount of funding, Peerform will then do a hard credit pull to finalize the process. This will cause your credit score to experience a slight drop.
The only way to apply with Peerform is online, and you cannot submit a joint application, which are two of the areas in which Peerform loses points in this category.
Peerform Reviews & Transparency
Category Rating: 3.5/5
- Better Business Bureau: Peerform isn’t BBB-accredited, but it does have an “A+” score from the bureau.
- Consumer Financial Protection Bureau: There is no data on Peerform loans.
- WalletHub: Peerform has a user rating of 1.4/5.
- Transparency: It’s very easy to find out about Peerform’s fees and interest rates, as the company lists them clearly. Plus, Peerform openly says that 600 is their minimum credit score and provides a means for pre-qualification.
Overall, Peerform scores well in terms of both reputation and transparency, even if there is not all that much data on the lender out there.
Peerform Personal Loans vs. Other Peer-to-Peer Lenders
|APRs||5.99% - 29.99%||10.68% - 35.89%||6.18% - 35.99%|
|Loan Amounts||$4,000 - $25,000||$1,000 - $40,000||$1,000 - $50,000|
|Loan Terms||3 or 5 years||36 or 60 months||36 or 60 months|
|Minimum Credit Score||Bad*||Fair*||Bad*|
In order to provide the most accurate review of Peerform personal loans, WalletHub used 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rated each section on a scale of 0 to 5, with 5 being the best, and then averaged the scores of the three sections to produce an overall rating for the loan.
- The “Terms” section includes information about how expensive the loan is, including rates and fees. It also takes into consideration how much consumers can borrow and how quickly they must pay it back.
For companies where APR and fee ranges differ greatly by state, we used data from the most populous state serviced by the company. Peerform personal loan terms do not fluctuate significantly by state, however.
- The “Requirements & Application” section examines how easy it is to apply for a loan and how long it takes to receive the money. It also looks at exactly who is eligible to apply.
- The “Reviews & Transparency” section measures the loan provider’s reputation as well as how clearly the lender discloses its terms and requirements. This takes into account user reviews and information from watchdog organizations.
The average of these three scores reflects how close a loan offer is to WalletHub’s definition of a 5-star loan. For more information, please read WalletHub’s full methodology.
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