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Peerform Personal Loan Review

Posted June 13, 2018 3:00 p.m. EDT

What is Peerform?

The online lender founded in 2010 by a former Citigroup executive was acquired two years ago by New York-based Versara Lending. The move expanded Versara’s debt-consolidation business with Peerform’s focus on borrowers who have difficulty finding a personal loan elsewhere. As a result, Peerform is willing to work with subprime borrowers.

Like other peer-to-peer lenders, Peerform’s customers are matched with potential investors — individuals and corporations — willing to fund their loans through the proprietary Loan Analyzer tool. What makes Peerform unique is that it will consider applicants whose credit scores are as low as 600. The trade-off, however, is higher rates than some competitors.

[PeerformPL]Peerform[/PeerformPL] personal loan highlights

  • Flexible repayment: Postpone a payment for up to 14 days without paying a fee.
  • Soft Pull: Peerform offers a Soft Pull to determine your rate where competitors require a hard pull during this preapproval process.
  • Availability: Peerform does not operate in Connecticut, Idaho, Iowa, Kansas, Maine, North Dakota, Vermont, West Virginia or Wyoming.
APR5.99%To29.99%Credit Req.600

Minimum Credit Score

Terms36 or 60

months

Fees 1.00% - 5.00%

APPLY NOW Secured

on Peerform’s secure website

Even with a credit score of 600, you still might be able to secure a loan through Peerform. This peer-to-peer lender gives you a customized grade based on your credit score, allowing for you to easily see the rate that you can obtain. While Peerform is great for those with less than stellar credit, you more than likely will be able to find better rates elsewhere.

Peerform personal loan details

[Chart-PeerformPersonalLoanDetails]

Fees and penalties

  • Terms: 36 or 60 months.
  • APR range: Loan APRs range from 5.99% to 29.99%.
  • Loan amounts: You can borrow anywhere from $4,000 to $25,000.
  • Time to funding: Up to 14 days
  • Origination fee: 1.00% - 5.00%, depending on the “grade” Peerform gives your application. The fee is subtracted from the loan total. Example: If you request a loan of $2,000 and are charged a 5% origination fee, you’ll get $1,900.
  • Prepayment fee: None
  • Late payment fee: After 15 days, you’ll be charged 5% of the monthly installment or $15, whichever is greater.
  • Other fees: If you pay by check, Peerform charges a $15 fee per payment. A returned payment also incurs a fee of up to $15, depending on state laws.
[/Chart-PeerformPersonalLoanDetails]

Many people like the idea of bypassing the traditional banks in favor of a P2P lender like Peerform. Borrowers use the money for things like debt consolidation, unexpected home or personal expenses or to fund small businesses. But these loans are not for everyone — and a Peerform loan can’t be used for certain items.

For example, Peerform prohibits borrowers from using personal loans to pay college tuition or other postsecondary expenses, or for “illegal activity.”

Eligibility requirements

Even though Peerform lends to borrowers with poor credit, applicants will still need to show that their debt-to-income ratio is below 40% and proof of having (or having had) at least one revolving account such as a credit card. Your credit history must not contain any current delinquencies or a recent bankruptcy, court judgments, tax liens or non-medical-based collections opened in the past 12 months.

Applicants must be at least 18 years old (19 if you’re a resident of Nebraska or Alabama), and a U.S. citizen or permanent resident. You’ll also need a Social Security number, a valid email address and a bank account.

Applying for a personal loan from Peerform

The online-only process is straightforward: Register at Peerform with your name, contact information and salary. To verify your identity, you’ll need to upload or e-mail some form of photo identification: driver’s license, passport or state or federal ID. In some cases, additional paperwork – Social Security card, utility bills, credit cards or bank statements – may be requested.

You also have to show proof of employment by uploading or e-mailing two pay stubs. Those who are self-employed will need to show a recent tax return plus two recent bank statements.

The Loan Analyzer then determines whether you’re eligible for a loan, and at which rates and terms. Once you select the best loan match, potential investors have up to 14 days to review it.

Peerform cannot guarantee that your loan will be completely funded by the end of the two-week period. If investors provide less than 60% but at least $4,000 of your requested amount within that time frame, you can decline this partially-funded loan. However, if at least $4,000 and more than 60% of your request is approved, then the loan is considered funded.

Once the request is funded and the loan completed with the lender, Cross River Bank, the money will arrive in your bank account via direct deposit.

Pros and cons of a Peerform personal loan

Pros:

Cons:

  • The 600 minimum credit score means borrowers with less-than-stellar credit may still qualify for a loan.
  • Peerform offers some flexibility regarding repayment. If cash flow is a problem, you can delay a payment for up to 14 days without paying a late fee.
  • You can opt to accept or decline a partially-funded loan.
  • There’s no prepayment penalty.
  • Those with lower Peerform Loan Analyzer scores face higher APRs up to 29.99% and origination fees up to 5%.
  • The only available term is 36 or 60.
  • No joint applications or cosigners are allowed.
  • It could take up to two weeks to find out whether you get the money, which is a problem if you need the cash right away.

Who’s the best fit for a Peerform personal loan?

Those with lower credit scores who have been rejected elsewhere may still qualify at Peerform. Those with good credit scores can qualify for decent interest rates, with an APR as low as 5.99%.

Borrowers who are able to pay off their loans relatively quickly should find the three-year term manageable, but the cash-strapped may prefer competitors’ longer five-year terms.

Alternative personal loan options

Peerform is just one of several peer-to-peer lenders, including those who offer loans to subprime borrowers. Here are a few alternatives to consider:

[LendingClubPL]LendingClub[/LendingClubPL]

APR5.98%To35.89%Credit Req.600

Minimum Credit Score

Terms36 or 60

months

Fees 1.00% - 6.00%

APPLY NOW Secured

on Lending Club’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores in the mid-600s.... Read More The loan application process is online and only takes a few minutes to complete and you can check your interest rate without hurting your credit. The loan processing time can take a while and you might not get approved if you have missed payments in the past.LendingClub is not available in Iowa and West Virginia Read Less

Lending Club offers loans between $1,000 and $40,000 with 36 or 60 month terms. Like Peerform, it accepts applicants with credit scores as low as 600. The APR range is 5.98% to 35.89%. LendingClub is not available in West Virginia or Iowa.

[OneMainFinancialPL]OneMain Financial[/OneMainFinancialPL]

APR16.05%To35.99%Credit Req.Varies

Minimum Credit Score

Terms24 to 60

months

Fees Varies

APPLY NOW Secured

on OneMain Financial’s secure website

OneMain Financial offers quick turnaround times and you can get your money the same day if you apply before noon. Interest rates are higher than other online lenders, especially for those with excellent credit, and you will need to visit a branch to get your loan.

This P2P lender is unique in that it sets no minimum credit score for applicants. However, it has the highest minimum APR among the lenders mentioned here, starting at 16.05% and going up to 35.99%. You can borrow between $1,500 and $30,000 for two, three, four or five years. OneMain Financial does not operate in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island or Vermont.

[ProsperPL]Prosper[/ProsperPL]

APR6.95%To35.99%Credit Req.640

Minimum Credit Score

Terms36 or 60

months

Fees 2.40% - 5.00%

APPLY NOW Secured

on Prosper’s secure website

Prosper is a peer-to-peer lending platform that offers a quick and convenient way to get personal loans with fixed and low interest rates. The interest rate you receive is determined by their own proprietary “Prosper Rating”. You can qualify for a loan with average credit and there are no prepayment fees, but your origination fee can be expensive, depending on your Prosper Rating.Prosper is not available in Vermont, Connecticut, Iowa, North Dakota, Maine, New York and Pennsylvania.

Prosper offers loans from $2,000 to $40,000 for 36 or 60 months. Its current APR ranges from 6.95% to 35.99%. Of the three alternative subprime lenders mentioned in this article, it requires the highest minimum credit score: 640. Prosper does not operate in Alabama, Arizona, Arkansas, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Vermont and West Virginia.

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