Warning
As of July 2022, Peerform is no longer accepting new applications.
Pros Explained
- Low credit score requirements: Typically, lenders require borrowers to have good to excellent credit to qualify for a personal loan. By contrast, Peerform’s minimum credit score is just 600, which is in the “fair” range.
- Pre-qualification with a soft credit check: While some borrowers require you to submit your information and undergo a hard credit inquiry to check your eligibility and rates, Peerform has a pre-qualification option. You can view your rates with just a soft credit check, which doesn’t impact your credit score.
Cons Explained
- Limited repayment options: When you take out a personal loan, you can usually choose a repayment term that works for your budget. Most personal loan lenders offer multiple terms, with options ranging from one to seven years. With Peerform, your choices are more limited; personal loans have a repayment term of 36 months. Consolidation loans have two options: 36 months or 60 months, but Peerform indicates the availability of five-year consolidation loans is limited.
- No co-signed or secured loan options: Lenders that issue loans to borrowers with less-than-perfect credit often allow applicants to apply with a co-signer or co-borrower to better their chances of qualifying for a loan. However, Peerform only offers unsecured loans, and it doesn’t allow co-signers or joint applications.
- Higher-than-average APR: Peerform’s APRs can be quite high; depending on the applicant’s credit score, income, and other debt, the rate can be as high as 29.99%. That number is much higher than the average APR for personal loans.
- Potentially high origination fees: Peerform charges origination fees, and the amount is deducted from the loan’s proceeds before it’s disbursed. Depending on your credit and other factors, the fee can be as high as 5.00%.
- Loan funding can take a week or more: Because Peerform is a peer-to-peer lender, you have to wait for investors to fund your loan. Depending on your situation, it could take a week or more for the loan to be fully funded, meaning a Peerform loan may not be a good option in an emergency.
Introduction
For borrowers with less-than-stellar credit, Peerform can be a useful option. As a peer-to-peer lending marketplace, it connects prospective borrowers with investors. After conducting a basic screening and soft credit inquiry, Peerform assigns a grade to a qualified borrower and lists their request on the marketplace platform. Investors then decide whether to fund the loan based on the borrowers’ rating and the APR.
While Peerform can be helpful for borrowers that have struggled to qualify for loans from other lenders, it does have potentially high fees and interest rates. And unlike some other lenders, it doesn’t allow borrowers to apply with a co-signer or a secured loan to get a better rate. It can also take some time before investors fully fund a loan, so Peerform loans aren’t a good choice if you have an emergency expense that needs to be paid right away.
Company Overview
Peerform was founded in 2010 by Mikael Rapaport, a Wall Street executive. It was designed to offer loans to borrowers that were overlooked by traditional personal loan lenders, offering loans of $25,000 or less to applicants with fair credit scores.
As a peer-to-peer lender, Peerform matches borrowers and investors with its proprietary Loan Analyzer tool.
In 2016, Peerform was acquired by Versara Lending, a privately-owned lender that specializes in debt consolidation loans. Peerform and Versara Lending are both based in New York.
Types of Personal Loans Offered by Peerform
Peerform only issues unsecured personal loans. Its loans can be used for several purposes, including consolidating debt, paying for unexpected costs, or financing medical expenses. Loans cannot be used to refinance student loans or to pay for education-related expenses.
Time to Receive Funds
When you apply for a loan from Peerform, you undergo a soft credit check and are shown your loan options. If you decide to move forward, your loan request is posted on the marketplace platform for investors to fund. Depending on the timeline, it could take several days to complete the process.
Once the loan is funded, you’ll be asked to provide documentation to verify your identity. For example, you may have to submit a copy of your driver’s license or passport. At that point, Peerform will perform its final approval, and your loan will be disbursed within three business days.
Peerform Personal Loan Features
Peerform may approve borrowers with fair credit who’ve had trouble qualifying for loans from other lenders. Its loans have the following features:
Loan Pre-qualification
You can fill out a short form and check your eligibility for a loan and view your potential rates without affecting your credit score.
No Prepayment Penalties
Making extra payments or paying off your loans ahead of schedule is an excellent way to reduce interest charges and save money. Peerform doesn’t charge prepayment penalties, so you can pay off your loan early without incurring extra fees.
If you pay the monthly installment with a check, Peerform will charge you a $15 check processing fee per payment. To avoid these fees, opt for direct debits through your bank account.
Apply for a Peerform Personal Loan
Peerform requires that borrowers have a credit score of 600 or above and a maximum debt-to-income ratio of 40%. Borrowers must not have current delinquencies or a recent bankruptcy, and they must have opened at least one revolving credit account.
You can use Peerform’s pre-qualification tool to check your rates and loan options without impacting your credit score.
If you want to apply for a personal loan from Peerform, follow these steps:
- Fill out the pre-qualification form: Enter your desired loan amount, loan purpose, and basic information about yourself to view your loan options.
- Select a loan: If you’re eligible for a loan, Peerform will list your loan options. Choose the loan amount and rate that makes sense for you.
- Wait for the loan to be funded: Peerform will post the loan on its marketplace platform for lenders to fund.
- Verify your identity: Submit a copy of your driver’s license or passport to verify your identity.
Can You Refinance a Personal Loan With Peerform?
Peerform doesn’t offer personal loan refinancing at this time.
Customer Service
Peerform customer support is available via phone or email.
- Phone: 800-338-8049
- Email: Support@Peerform.com
Customer service representatives are available Monday through Friday from 9:00 a.m. until 6:00 p.m. EST.
Peerform used to have a FAQ section for customers, but the link to its “Help” is broken as of Feb. 8, 2022. The only way to get answers to your questions is to call or email Peerform directly.
Customer Satisfaction
Peerform wasn’t part ranked on J.D. Power’s 2021 U.S. Consumer Lending Satisfaction Study, which measured customer satisfaction among top lenders. Customers also haven’t submitted reviews on TrustPilot.
On Best Company, Peerform has a rating of 1.3 out of 5 stars based on 16 user reviews. In several reviews, customers complained about the confusing application process and said they were denied loans after being pre-approved.
Account Management
Peerform allows borrowers to make payments online. Customers can also sign up for direct debit to make payments, but there isn’t an automatic payment discount.
How Peerform Compares to Other Personal Loan Companies
Peerform may be appealing because it has lower credit score requirements than some lenders and offers loans up to $25,000. However, its APRs and origination fees can be high, and it can take a while for loans to be approved and disbursed
With those drawbacks in mind, another option to consider is Upstart. It offers loans to borrowers with scores as low as 300 or no credit history at all. Here’s how Peerform and Upstart compare.
Peerform vs. Upstart
When it comes to loan disbursem*nt timing, Upstart is generally faster than Peerform. Upstart is also an online lender, but it’s not a peer-to-peer lender like Peerform. Upstart’s loans are issued by partner banks, so you don’t have to wait for individual investors to fund your loan. In fact, Upstart funds most loans within one business day.
Upstart also offers a wide range of loan options. Borrowers can apply for $1,000 to $50,000 and choose a loan term of three or five years. However, its loans may be more expensive than Peerform’s options. The maximum APR for Upstart’s personal loans is 35.99%, and origination fees can be as high as 12.00%.
Overall, Upstart has the edge over Peerform as a lender for borrowers with less-than-perfect credit, but applicants with good to excellent credit may find better deals elsewhere.
| Peerform | Upstart | |
|---|---|---|
| Loan Amounts | $4,000 to $25,000 | $1,000 to $50,000 |
| Loan Terms | 3 years for personal loans 3 or 5 years for consolidation loans | 3 or 5 years |
| APR | 5.99% to 29.99% | 7.80% to 35.99% |
| Origination Fee | 0% to 5% | 0% to 12% |
| Late Fee | 5% of the late payment amount or $15, whichever is greater | 5% of the late payment amount or $15, whichever is greater |
| Unemployment Protection Available | No | No |
Read our full review of Upstart personal loans.
Verdict
If you want to borrow money to cover a major purchase or consolidate debt but you’ve had trouble finding a lender because of your credit score, Peerform could be a solution. It has lower credit score requirements than most lenders, and you can check your rates online without undergoing a hard credit inquiry.
However, its rates and fees can be high, and customer reviews mention a confusing and lengthy application process. Before applying for a loan, compare rate quotes from multiple personal loan lenders to avoid high APRs.
Methodology
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected over 25 data points across more than 50 lenders, including interest rates, fees, loan amounts, and repayment terms to ensure that our reviews help users make informed decisions for their borrowing needs.
Our full personal loans methodology, including our data collection process and weighted data points, is available for review.
