What You Need to Know About Peerform Peer Lending Loans

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Airbnb, Uber, and TaskRabbit are sharing-economy gigs I understand. But I didn’t realize this marketplace was also used to take out personal loans until I read a Peerform review.

Yes, peer-to-peer lending is on the rise. Peerform promises to provide customers with a “clear, fast, and fair” borrowing process even if you have a bad credit score.

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.

Peerform review

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 products

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

peerform reviews

Image credit: Peerform

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

peerform reviews

Image credit: Peerform

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

peerform reviews

Image credit: Peerform

Once you confirm the amount and terms, your loan will be listed on the Peerform marketplace.

Step 4: Verify your identity

peerform reviews

Image credit: Peerform

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 support@peerform.com. You can also reach its customer service number, 800-338-8049, from 9 a.m. to 6 p.m. ET.

If this Peerform review didn’t help answer all your questions, you can also see what others are saying by checking out the company’s Facebook and Twitter pages.

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 2019!
LenderAPR RangeLoan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.990% APR to 16.490% APR (with AutoPay). Variable rates from 5.74% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of February 15, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.74% APR assumes current 1-month LIBOR rate of 2.51% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  4. SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.
  5. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

2 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

3 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

5 Important Disclosures for LendingPoint.

LendingPoint Disclosures

  • Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 9.99% APR to a high of 35.99% APR, with terms from 24 to 48 months. The loan offer(s) shown reflect a 28 day payment cycle which is being offered as a courtesy as many of our customers are paid on a biweekly schedule and thus this may better align the loan payment dates with your actual income receipt schedule.

6 Important Disclosures for LendingClub.

LendingClub Disclosures

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 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. 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 the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. 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. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.

†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com

**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.

7 Important Disclosures for Earnest.

Earnest Disclosures

  1. Earnest does not lend in Alabama, Delaware, Kentucky, Nevada, or Rhode Island.

8 Important Disclosures for Avant.

Avant Disclosures

* 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

* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements.

** 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.

8.09% – 35.99%$1,000 - $50,000

Visit Upstart

5.74% – 16.49%1$5,000 - $100,000

Visit SoFi

7.99% – 35.89%*$1,000 - $50,000

Visit Upgrade

5.99% – 24.99%2$5,000 - $35,000

Visit Payoff

5.99% – 29.99%3$10,000 - $35,000

Visit FreedomPlus

5.99% – 18.99%4$5,000 - $50,000

Visit Citizens

9.99% – 35.99%5$2,000 - $25,000

Visit LendingPoint

6.95% – 35.89%6$1,000 - $40,000

Visit LendingClub

6.99% – 18.24%7$5,000 - $75,000

Visit Earnest

9.95% – 35.99%8$2,000 - $35,000

Visit Avant

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.