Peerform Personal Loans: 2021 Review

Peerform’s peer-to-peer loans may help borrowers with average or bad credit and thin credit histories qualify for a personal loan.

Annie MillerberndNov 20, 2020
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Our Take

3.0

NerdWallet rating 

The bottom line: Peerform’s loans have low rates compared to other bad-credit lenders, but payments are less flexible.

Peerform

Peerform

Min. Credit Score

600

Est. APR

5.99 - 29.99%

Loan Amount

$4,000 - $25,000

Pros & Cons

Pros

  • Competitive rates among bad-credit lenders.

  • Soft credit check with pre-qualification.

Cons

  • Reports payments to only one of the three major credit bureaus.

  • Charges origination and late fees.

  • No option to change your payment date.

  • Borrowers have only one repayment term option.

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Full Review

To review Peerform’s personal loans, NerdWallet collected more than 40 data points from the lender, interviewed company executives and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.

Peerform provides peer-to-peer personal loans to borrowers with less-than-perfect credit. Like other online peer-to-peer lenders, Peerform assigns borrowers grades when they apply for a loan, and borrowers receive a loan decision and interest rate based on those grades.

Because loans are funded by investors on Peerform’s platform, a borrower can be approved for a loan and still wait up to two weeks for it to be funded, according to a customer service representative. If the loan isn’t fully funded by investors after 14 days, a borrower won’t get any funding.

Peerform’s rates are lower than some of its competitors, but other lenders may offer bad-credit loans with better features, like the ability to change your payment date and a rate discount for autopay.

Peerform is best for borrowers who:

  • Have bad or fair credit (689 or lower FICO) and a thin credit history.

  • Want to consolidate high-interest credit card debt.

  • Have other ways to build credit.

Peerform at a glance

Credit building

  • Soft credit check to pre-qualify.

  • Reports payments to only one credit bureau.

Affordability

  • APRs are low among lenders targeting similar borrowers.

  • Charges origination fee.

  • No rate discount for autopayments.

Loan flexibility

  • No option to choose or change payment date.

  • Offers only unsecured loans.

  • Loan can take two weeks to be funded.

  • Offers limited loan amounts.

  • Not available in: CT, ND, VT, WV, WY or DC.

Transparency

  • Clearly discloses APR range on website.

  • Loan terms not displayed on website.

  • No FAQ to answer borrower questions.

Customer experience

  • Offers limited customer contact channels during business hours.

  • 100% online application process.

Where Peerform stands out

Thin credit history allowed: Peerform requires applicants to have at least one year of credit history, while other lenders may require three or more years. The lender doesn’t require a minimum number of accounts on a borrower’s history, either.

Soft credit check to pre-qualify: Like many online lenders, Peerform allows borrowers to pre-qualify to see their possible rate and loan amount without affecting their credit.

Where Peerform falls short

Reports to only one credit bureau: Peerform reports payments on its loans to TransUnion only, while many of its competitors report to three major credit bureaus. On-time payments can help you build credit so you can potentially qualify for better rates on future loans and credit cards. If a lender doesn’t report to all three, your good credit behavior could go unnoticed by lenders.

High minimum loan amount: The smallest loan you can get from Peerform is $4,000, which means you can’t get a loan for small expenses. Minimum loan amounts with other lenders tend to start at $2,000 or lower.

No option to choose or change your payment date: With a Peerform loan, you can’t choose your payment date at the outset of the loan or change it later on if, for example, you switch jobs and get paid on a different date. Most lenders let you do at least one or the other.

One repayment term option: Peerform has one available repayment term: three years. Other lenders let you choose from two or more repayment terms, which gives you some control over your monthly payments and how much interest you pay over the lifetime of the loan. For example, a longer repayment term would lower monthly payments, and a shorter one could reduce the overall interest you pay.

No co-signed, joint or secured loan options: Peerform doesn’t let you add a co-signer, apply with a co-borrower or secure the loan to potentially qualify for a lower rate or higher loan amount.

How to qualify for a Peerform loan

  • Minimum credit score: 600. This lender uses the FICO credit scoring model.

  • Minimum credit history: one year.

  • Minimum annual income: $10,000.

  • Maximum debt-to-income ratio: 40%, excluding mortgage.

  • Must be a United States citizen or permanent resident.

Loan example: A three-year, $15,000 loan with an APR of 23.4% would have a monthly payment of $584. You’d pay $6,024 in total interest on that loan.

How to get a Peerform loan

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us. Pre-qualifying will not impact your credit.

Apply on Peerform

You can fill out a form on Peerform’s website, providing credit and income information. Checking your rate does not affect your credit score. A hard credit pull is triggered when you complete your loan application and get approved for funding.

Personal Loans Rating Methodology

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.