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Peerform Personal Loans: 2019 Review

Jan. 2, 2019
Loans, Personal Loans, Personal Loans Reviews
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3.0 NerdWallet rating

Good for: Bad credit

Peerform is a marketplace lender for borrowers with low credit scores. The company connects borrowers with investors who lend them money, and it charges an origination fee.

Peerform is a good fit for those who:

  • Have bad credit. Peerform requires a minimum credit score of 600.
  • Are new to credit. Borrowers need a minimum of one year of credit history to qualify.
  • Want to consolidate debt. Peerform’s debt consolidation loans carry slightly lower rates and higher loan amounts than loans used for other purposes.

Peerform loan rates and terms

Peerform_Logo
Loan amounts$4,000 - $25,000 for any purpose
$10,000 - $35,000 for debt consolidation
Typical APR5.99% - 29.99% for 3-year loans

5.99% - 25.05% for 3-year debt consolidation loans

12.57% - 21.95% for 5-year debt consolidation loans
FeesOrigination fee: 1% to 5% of loan amount

Late fee: 5% of payment or $15, whichever is greater, charged after 15-day grace period

Prepayment penalty: None
Time to fundingTypically one week
RepaymentsMonthly, over 3 years or 5 years
Soft credit check?Yes
How to qualify
  • Minimum credit score: 600.
  • Minimum credit history: 1 year.
  • Minimum gross annual income: $10,000.
  • Debt-to-income ratio: 40% or lower, excluding mortgage.
  • Unavailable to borrowers in Connecticut, North Dakota, Vermont, West Virginia, Wyoming and Washington D.C.
Best forBorrowers with bad credit, debt consolidation loans
Click "check rate" to pre-qualify and receive a personalized rate.


» MORE: Personal loans for debt consolidation

Peerform personal loan review

To review Peerform, NerdWallet collected more than 30 data points from the lender, interviewed company executives and compared the lender with others that seek the same type of customer or offer a similar personal loan product. Loan terms and fees may vary by state.

New York-based Peerform wants to serve those with less-than-perfect credit who cannot qualify for loans from banks, says Oana Varlan, Peerform spokeswoman. Like other online marketplace lenders, Peerform assigns borrowers grades when they apply for a loan, and they receive a loan decision and interest rate based on those grades.

Debt consolidation loans: Peerform offers loans for debt consolidation, which rolls multiple debts into one fixed monthly payment, ideally at a lower interest rate. Peerform’s starting rates for its consolidation loans are lower than average credit card rates.

Origination fee: Peerform charges an origination fee of 1% to 5% of the loan amount for three-year loans and 5% for five-year loans. The fee is included in the annual percentage rate calculation and subtracted from the loan proceeds. For example, a $10,000 loan with an origination fee of 3% would cost $300 and net the borrower $9,700.

No co-signers or secured loans: Peerform does not allow borrowers to add a co-signer or secure a loan, two options that some lenders offer to help borrowers boost their chances of qualifying or get a better rate on a loan.

The company reports loan payments to credit bureau TransUnion, so your credit score may improve if you make on-time payments. Some lenders report repayments and late payments to all three major credit bureaus.

Loan example: For a borrower with bad credit, a $7,000 personal loan with a repayment term of 36 months at an APR of 27.2% would carry monthly payments of $287, according to NerdWallet’s personal loan calculator.

How Peerform compares

APR

5.99% - 29.99%





Minimum credit score

600





Best for

Bad credit



APR

9.95% - 35.99%





Minimum credit score

580





Best for

Bad credit



APR

16.05% - 35.99%





Minimum credit score

None





Best for

Bad credit, secured loans



Click "check rate" to pre-qualify and receive a personalized rate from multiple lenders on NerdWallet.

Peerform’s rates and fees compare to Avant, a large online lender for bad credit loans. Avant’s minimum credit score requirement of 580 is 20 points lower than Peerform’s, although it also requires higher gross annual income of $20,000.

Peerform’s APR range is lower than that of OneMain, which also offers bad credit loans. OneMain does not have a minimum credit score requirement, and it allows borrowers to secure loans with a paid-off, insured car.

Financing may also take longer at Peerform. It typically funds loans in one week, compared to the next business day at Avant and same day at OneMain.

How to apply for a Peerform loan

You can fill out a form on Peerform’s website, providing credit and income information. Applicants usually receive a soft credit check (which doesn’t affect credit score) to get a rate quote. They get a hard check (which can affect credit score) before the loan is approved.

Click the button below to pre-qualify and receive a personalized rate from multiple lenders on NerdWallet.


Before you shop for a personal loan:

NerdWallet’s ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.

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