Peerform is a lending marketplace that has been in operation since 2010. It was founded by Wall Street executives with backgrounds in finance and technology.
Instead of directly lending to people, Peerform connects borrowers with investors who fund the loans. You can apply and, upon approval, your inquiry becomes visible on the platform where investors can see it.
Here, we will take an in-depth look at Peerform’s loan offerings.
Peerform: how it works
Peerform provides unsecured personal loans and consolidation loans. They range from $4,000 to $25,000 (the amounts can vary by state), and the company structures them in the form of online installment loans.
The lump sum will be transferred into your bank account once you’re approved. You’ll gradually repay it over a period of three to five years. You can configure payments to automatically deduct from your bank account or you can pay manually.
Borrowers can use the funds from a Peerform loan for a number of reasons, including:
- Debt consolidation
- Credit card refinancing
- Home improvement projects
- A wedding
- Medical expenses
- Car financing
- A major purchase
What happens when a Peerform loan is not funded within the two-week listing period? In the unfortunate event that your loan doesn’t attract investors who invest at least $4,000, your application will end and you will not get the funding.
If you do get at least $4,000, but not 60% of your goal, your loan will be funded. If you get $4,000, but it’s not equal to at least 60% of your goal, you will have the option to have Cross River Bank partially fund your loan.
Here’s a closer look at the costs, eligibility requirements, and how to apply.
Peerform charges interest over the full term of the loan as well as a one-time origination fee. Interest is paid along with the principal repayments on a monthly basis. The rates are fixed, so repayments will be the same throughout the loan term.
On the other hand, the origination fee is paid out of the loan prior to you receiving it. For example, if you get a loan for $10,000 and have a 3.0% origination fee, you will only receive $9,700.
The way Peerform decides your interest rate and the amount of your fee is by reviewing your application and assigning you a grade. The grade not only determines your costs, but it is also shown to investors.
You can view all of the grades and corresponding rates on Peerform’s website.
Aside from these costs, there are no application or early repayment fees. However, once you’re a borrower, there are fees for late payments, rejected payments, and paying by check.
Peerform eligibility requirements
To be eligible for a loan with Peerform, you need to meet the following criteria:
- At least 18 years old (19 in Alabama and Nebraska)
- S. citizen or permanent resident
- Have a social security number
- Bank account required
- Have a valid email account
- A minimum FICO score of 600
- Live in a state in which Peerform extends loans (not available in North Dakota, Vermont, West Virginia, Wyoming, Maine, Iowa, Idaho, Kansas, and Connecticut)
- Have a verifiable source of income
These are the basic requirements. However, Peerform also uses its Peerform Loan Analyzer, which weighs other financial factors to determine an applicant’s full eligibility.
Peerform partnered with leading economists to develop this tool, which aims to find creditworthy borrowers without relying solely on an applicant’s credit score. The only way to find out if you qualify for sure is to fill out the quick application.
Peerform’s application process
Here’s how to apply.
- Visit Peerform’s website and click “Am I Eligible?”
- Fill out the registration form.
- Agree to the terms and click “Get Your Rate.”
That’s all there is to it. The process is one of the shortest available amongst online lenders. Peerform immediately tells you if you qualify and the rate you can get.
If you accept it, your loan will be put on the platform for investors to invest in right away and you will be taken through additional steps to finalize your application.
Your credit report will not receive a hard inquiry until three things have happened: 1) you have attracted enough investors to fund your loan, 2) you have completed all verifications, and 3) you have passed the underwriting team’s final review.
Peerform review and summary
In summary, Peerform is a good option to look into if you are in need of an unsecured personal or consolidation loan, especially for those with a less-than-stellar financial history.
The interest rates are decent, but what really makes this lender stand out is that it is more flexible when it comes to eligibility criteria.
It has a minimum credit score requirement of 600, no minimum income requirement, and only requires one year of credit history. To put that into perspective, Prosper requires a 640 credit score and LendingClub requires 680.
One downside is that you will have to pay an origination fee, but that comes out of the loan proceeds so you won’t have to pay it out-of-pocket. Also, if you are put into a lower grade, you will have a more expensive interest rate and fee, and may have a harder time getting funded by investors.
If you don’t get at least $4,000 from investors within two weeks, you won’t be able to get funded, and that can result in time lost. Lastly, the marketplace model can be slower at funding compared to direct lenders.
However, it is very easy to apply, and it doesn’t hurt your credit score. So, many people will discover that Peerform is worth checking out. If you do decide to apply, make sure you compare the rates and terms with what you prequalify for with SuperMoney’s loan offer engine.
Jessica Walrack is a personal finance writer at SuperMoney, The Simple Dollar, Interest.com, Commonbond, Bankrate, NextAdvisor, Guardian, Personalloans.org and many others. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and fun.