2019 Peerform Review – Personal Loans
Peerform Review Summary: Peerform offers personal loans through peer-to-peer lending, which means that 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. For more information on the terms of Peerform loans and how they compare to other lenders, read on.
Peerform Personal Loan Terms
|3-year personal loan APRs||5.99% - 29.99%|
|3-year debt consolidation loan APRs||5.99% - 25.05%|
|5-year debt consolidation loan APRs||12.57% - 21.95%|
|Borrowing timeline||3 or 5 years|
|Amount of funding||$4,000 - $25,000|
|Approval/funding timeline||1 – 14 days|
|Origination fee||1% to 5%|
|Early payoff fee||$0|
|Late payment fee||$15 or 5% of payment, whichever is greater|
|Unsuccessful payment fee||$15|
|Credit score requirement||600|
|Minimum income requirement||Not disclosed|
|Other qualifications (must meet all)||18+ years old
U.S. citizen or permanent resident
Live in one of the 45 states Peerform services
|States Peerform does not service||CT, ND, VT, WV, WY|
Peerform Loan Rates & Fees
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 Requirements & Application Details
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.
Peerform Reviews & Transparency
Oportun is far less transparent than most personal loan providers. They’re not open about overall interest rates or fees. Customers can use the company’s pre-qualification tool to estimate their own terms, though. Below, you can see what other sources have to say about Oportun.
- Better Business Bureau: Peerform isn’t BBB-accredited, but it does have an “A” score from the bureau.
- WalletHub: Since Peerform isn’t a direct lender, WalletHub awards their loans 3.5/5 stars.
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. They have a pretty good reputation, too.
Peerform Personal Loans vs. Other Peer-to-Peer Lenders
|APR range||5.99% - 29.99%||6.95% - 35.89%||7.69% - 35.99%|
|Borrowing timeline||3 or 5 years||36 or 60 months||36 or 60 months|
|Amount of funding||$4,000 - $25,000||$1,000 - $40,000||$1,000 - $50,000|
|Credit score minimum||600||600-640*||620*|
*According to multiple third-party sources
WalletHub’s rating of loans from Peerform drew from scores in seven general categories, which each contained several metrics. Below, you can find a list of all the categories and a description of the metrics considered.
- APR: WalletHub found out the interest rate ranges on all types of Peerform loans, along with whether Peerform’s APRs are variable or fixed.
- Fees: We checked what fees Peerform charges their loan customers, such as origination fees, fees for late payments, and fees for paying a loan off early.
- Loan amounts: We learned what dollar amounts are available through Peerform, plus how many years customers can take to pay loans off.
- Transparency: To determine Peerform’s transparency, we looked at how easy it is to find out Peerform’s loan terms and their minimum qualifications.
- Requirements: WalletHub got information on Peerform’s minimum qualifications, including what credit score you have to have and how much money you need to make. We also learned about what Peerform requires when it comes to citizenship and tax ID numbers.
- Application process: This category included learning about the pre-qualification process as well as the final application and approval process. And we found out the amount of time it takes to get approved and receive the loan.
- Customer satisfaction: We measured customer satisfaction by looking at Peerform’s BBB score and WalletHub reviews. We also checked if there were any complaints on file with the Consumer Financial Protection Bureau.
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