With Peerform, an affiliate company of Versara Lending, you can apply for personal loans via an online platform that connects you with individuals or businesses willing to loan you the money.
You can then use the cash to make home improvements, start a business, buy a new car, or consolidate your credit card debt.
The peer lending company offers unsecured, fixed-rate loans to people with a range of credit scores. Read on to learn the pros and cons of borrowing from Peerform.
Through Peerform, you can apply for a personal loan and get quotes within minutes without affecting your credit score. You’ll want to keep some things in mind.
Pros of Peerform personal loans
The superfast process is one of the many benefits pointed out in Peerform reviews. Here are some more:
You can have poor credit: Peerform uses an algorithm called Loan Analyzer that takes several factors (credit score, debt-to-income ratio, etc.) into consideration to determine how risky you are as a borrower. While your credit score will likely affect your interest rate, it won’t disqualify you.
Lower interest rates: Since the terms are decided by individuals and there’s competition among lenders, you could secure a lower interest rate than if you went to a traditional bank. As of April 17, 2018, Peerform has fixed APRs from 5.99% to 29.99%. The average personal loan rates range from 10.30% to 32.00% based on credit scores, according to ValuePenguin.
Easy payments: For your repayment term, you will pay the same amount every month at a fixed rate. You even get a 15-day grace period.
Debt consolidation: A great way to reduce your credit card debt is to consolidate it with a personal loan. Credit card debt can carry an APR of more than 20.00%, but a Peerform loan could help you pay that off at a lower rate.
Apply anywhere, anytime: Since everything is done online, you don’t have to worry about bank hours or locations. You can apply at 2 a.m. from your cellphone if you want.
No prepayment penalties: Peerform lets you pay more — or early — without any additional fees.
Cons of Peerform personal loans
Although there are many benefits, consider these drawbacks:
There are fees for borrowers: Although Peerform does a good job of presenting its fees upfront, it is something to consider. You will have to pay an origination fee, which is determined by your risk assessment. Also, there are late fees (beyond 15 days), check-processing fees, and unsuccessful payment fees if direct deposit payments bounce back.
You might have a higher interest rate: While you could get a much lower interest rate than a traditional bank, it could also be much higher. Be sure to research all your options before borrowing money.
Repayment terms are short: Peerform’s loans have three-year repayment terms, while similar companies such as LendingClub have five-year options.
It might not be available in your state: Not all states allow peer-to-peer lending. So even if you wanted to try it out, it might not be an option.
Peerform sets up borrowers with lenders to get personal loans for just about anything. On the site’s home page, you choose the amount you’re looking to borrow and the reason you’re taking out the money. All the personal loans are unsecured, meaning you don’t have to put down any collateral.
Here are possible uses for a Peerform personal loan:
Debt consolidation: If you’re overwhelmed by credit card debt, you can take out one loan with a potentially lower interest rate. This simplifies the process and should make it cheaper.
Wedding: The average wedding costs about $25,000, so you might not have that much in savings or don’t want to drain your account. Peerform lenders will loan you the money to cover everything from vendor fees to your honeymoon.
Home improvement: Using a personal loan to update your home or remodel a room could be a good investment since you’re adding value.
Medical expenses: The last thing you want to be stressed about when dealing with a health issue is money. Peerform promises to try to get you the money you need ASAP to cover any unexpected medical costs, including hospital bills, infertility treatments, and laser vision correction. It’ll even loan you money for cosmetic procedures.
Moving costs: Whether it’s deposits and fees or paying for movers, relocating can cost a lot out of pocket at one time. A personal loan could help ease the burden on your bank account.
Auto financing: You can borrow money for a variety of vehicle scenarios, including a lease buyout, purchasing a new car, or refinancing your current one.
A Peerform personal loan can be used for almost any life situation. It has specific options such as green loans, which are used to make energy-efficient updates to a home, as well as the more general “major purchase.”
Business loans are also a possibility, but taking out private student loans are best done through a traditional lender.
Using the Peerform online platform
Peerform makes the application process quick and easy.
You have to fill in some basic personal information, select a loan type and amount, get offers, and go through a verification process to collect your money. No fees will be charged unless the loan is issued, so you can browse through your options worry-free.
Here’s a step-by-step guide to applying.
Step 1: Make a loan request and register
First, you have to give details such as your name, address, date of birth, contact information, salary, and loan amount. You will also be asked to create a password. A hard credit check isn’t done until a loan is approved, so you can check without worrying about your score.
Step 2: Select a loan
After inputting your information, you will be presented with loan options on a prequalified basis. You can then choose to adjust the amount you’re looking to borrow and choose between different terms.
Step 3: List your loan
Once you confirm the amount and terms, your loan will be listed on the Peerform marketplace.
Step 4: Verify your identity
To finish your application, Peerform must verify your identity and income by reviewing things such as your driver’s license, passport, bank statements, credit card bills, Social Security card, and recent pay stubs.
It might also ask for your tax returns, so make sure you have any documents you might need on hand.
The whole process can take a few days up to a couple of weeks.
Peerform interest rates and fees
Depending on your risk assessment from Peerform’s algorithm, you could be offered a variety of APRs and origination fees. Peerform has grades that correspond to APRs. Those rates, as of April 17, 2018, range from 5.32% for an AAA grade to 26.06% for a DDD grade.
You will only have to pay a one-time origination cost. You would only be charged additional fees if you make late payments, the company has trouble collecting your payment, or you decide to pay by check. All those fees are capped at $15.
Peerform eligibility requirements
Peerform encourages anyone to apply for a loan since its proprietary analyzer takes many factors into consideration. But it does list some basic requirements that will help you get a better rate and acceptance by lenders:
You should have a credit score of at least 600, but will still be considered at a lower one.
Your debt-to-income ratio should be below 40%.
Your credit profile shouldn’t have delinquencies, bankruptcies, tax liens, judgments, or nonmedical collections in the past year.
You should have at least one open bank account and one revolving account.
Using these details, Peerform will assign you a grade that will determine your interest rate and origination fee.
Peerform customer service
All the rates quoted above are current as of April 17, 2018. For the latest available rates, contact Peerform at email@example.com. You can also reach its customer service number, 800-338-8049, from 9 a.m. to 6 p.m. ET.
Note: Student Loan Hero has independently collected the above information related to these personal loans. Peerform has neither provided nor reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|5.81% – 15.37%1||$5,000 - $100,000||Visit SoFi|
|6.87% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|5.49% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|