Peerform Personal Loan Review

Peerform personal loan rates may be right for fair-credit borrowers

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Peerform Personal Loan
overall rating
3.0

Peerform’s loan marketplace pairs borrowers with willing investors. Loan approval and funding is not immediate and an origination fee is charged on all loans, which may not work if you need funds fast or don’t want to borrow more from a lender than you need (to cover the origination fee). But fair-credit borrowers may find it easier to qualify for a Peerform personal loan than with other lenders. Since Peerform offers a prequalification option that does not impact your credit score, it’s worth comparing potential offers here with what you qualify for elsewhere.

  • Product Specifications
  • Pros and Cons
  • Fees
  • Company Overview
Product Specifications
  • APR Range 5.99% to 29.99%
  • Recommended Minimum Credit Score 600
  • Loan Amounts $4,000 to $25,000
  • Loan Terms Three or five years
Pros and Cons
Pros
  • Fair credit borrowers may qualify

  • Borrowers can prequalify

  • Several loan options

Cons
  • Fees

  • Not available in all states

  • Interest rates can be high

  • Funding isn’t immediate

Fees
  • Origination fee: 1% to 5% of the total amount borrowed
  • Late fee: $15 or 5% of the payment due, whichever is greater
  • Check processing fee: $15 per payment
  • Unsuccessful payment fee: $15 per attempt unless your state requires it to be less
Company Overview

Founded in 2009, Peerform is an online peer-to-peer lending platform. It was built to provide borrowers the funds they weren’t getting through traditional lending channels, and to offer investment opportunities to institutional investors. Peerform was acquired by Versara Lending in 2016, and loans through Peerform are made by Cross River Bank.

Pros of Peerform Loans

  • Fair credit borrowers may qualify: The recommended minimum credit score for a Peerform personal loan is 600, which potentially makes a Peerform loan an option for borrowers who don’t qualify elsewhere.
  • Borrowers can prequalify: Peerform will not run a hard pull on your credit to determine if you prequalify for a loan.
  • Several loan options: It’s possible to compare different loan options without submitting multiple applications.

Cons of Peerform Loans

  • Fees: While there are no application fees or prepayment penalties, Peerform charges an origination fee on all loans, between 1% and 5%. It also charges late payment, unsuccessful payment, and check processing fees. Some lenders charge no fees at all, or charge no origination fee.
  • Not available in all states: If you live in Connecticut, North Dakota, Vermont, West Virginia, or Wyoming, you will not be able to get a personal loan through Peerform.
  • Interest rates can be high: While APRs on Peerform personal loans start at 5.99%, rates can reach 29.99% for less-qualified borrowers. Before listing your loan inquiry on the Peerform platform, check out other lender offers. 
  • Funding isn’t immediate: Because Peerform is a peer-to-peer lending platform, your loan request will first be posted to the marketplace for funding and could be listed there for up to 14 days. This process for approval and funds disbursement could take longer than it would with other lenders who offer same- or next-day funding. If you need money quickly, look elsewhere.

Peerform Personal Loan Rates & Terms

Peerform personal loan rates vary based on the type of loan taken out as well as your creditworthiness.

Rates range from 5.99% to 29.99% APR—the rate you get is dependent on the loan grade you’re assigned (AAA to DDD).

Peerform offers a three-year personal loan, as well as three- or five-year debt consolidation loans.

How Much Can You Borrow With Peerform?

Peerform personal loans are available in amounts ranging from $4,000 to $25,000. If you need smaller or larger amounts, find a different lender.

Peerform Personal Loan Fees

There are no application fees or prepayment penalties on Peerform personal loans, and you won’t pay anything to submit a loan request on the platform. However, there are a few fees of which you should be aware:

  • Origination fee: This is intended to cover any costs involved with processing and disbursing the loan. Peerform charges 1% to 5% of the total amount borrowed, depending on the grade of the borrower and type of loan. The origination fee is deducted from the loan before funds are disbursed.
  • Late fee: Peerform may also charge a late fee if a payment is 15 or more days past due. This fee is equal to $15 or 5% of the payment due, whichever is greater.
  • Check processing fee: There is no charge if you want to make your monthly loan payments by ACH transfer. However, if you want to pay by check, you’ll incur a processing fee of $15 per payment.
  • Unsuccessful payment fee: You can expect this fee if your monthly payment does not go through successfully. This would be the case if your account has insufficient funds or is closed or frozen before the payment is withdrawn. The unsuccessful payment fee is $15 per attempt, unless your state requires it to be less.

How to Get a Personal Loan From Peerform

Personal loans from Peerform are only available to residents in 45 states. If you live in one of those states, however, applying is a straightforward and relatively quick process. If you live in Connecticut, Vermont, North Dakota, West Virginia, or Wyoming, you cannot get a personal loan from Peerform.

Getting an initial loan quote from Peerform involves a soft credit check, which won’t affect your credit score. Once your eligibility is verified and your funding needs are determined, the loan request will be listed on Peerform’s lender marketplace for potential investors to find.

Peerform will conduct a hard credit check when finalizing the loan before funds are disbursed.

Final Verdict

Peerform personal loans are touted as being hassle-free funding options for a variety of loan needs. The online application process connects borrowers in 45 states with investors on its peer-to-peer platform. And because it recommends a credit score of only 600, fair credit borrowers may find success when applying. Simple repayment terms may also appeal.

But Peerform is not for everyone. Funding can take more than two weeks, interest rates can be high, and Peerform charges an origination fee on all loans. Borrowers who need less than $4,000 or more than $25,000 should look elsewhere.

Methodology

We look at 40 data points from dozens of financial institutions to evaluate lenders for our personal loan reviews. Because a loan’s APR can dramatically impact the total cost you pay, we weight that feature the heaviest. But since a great APR usually requires at least a good credit score, we also give points to lenders who may have a higher potential APR but offer loans to people with less-than-perfect credit scores. 

Along those lines, we favor lenders who allow you to see if you prequalify before applying for a loan, so you won’t harm your credit score just by applying. Origination, prepayment, and late fees all get counted in our assessment. And lastly, we deduct points from the ratings of lenders with restricted access—for instance, those who require you to first have another type of account with them or to join a nonprofit organization.