Peerform Personal Loan Review 2020

4.3 stars out of 5

The Smart Investor reviews are unbiased, and reflect the views of our editorial staff. We’ve collected the information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.

Peerform was created by a few Wall Street executives in 2010 to try to meet an underserved market: near Prime Borrowers. They are based out of New York, New York. Peerform is a peer-to-peer lending marketplace. Peer-to-peer lending is a platform that matches borrowers with lenders. The term peer-to-peer usually means average Joes borrowing from and lending to other average Joes. In the case of Peerform, those who invest in the loans are accredited investors or large financial institutions. Peerform states they look beyond just the FICO score and have special algorithms to determine a borrower’s creditworthiness.

Peerform Personal Loan Specification

Here are the basic specifications & requirements of Peerform Personal Loan :

Feature Peerform Personal Loan
Loan Amount Range $4,000 -$25,000
Interest Rate Range 5.99%- 29.99%
Term 36 or 60 months
Origination fee 1 to 5.00%
Late Payment Fee $15 or 5% of the amount due whichever is greater
Returned payment fee $15
Check Processing fee $15
Prepayment fee None
Minimum Credit Score 600
Funding Typically within a week – up to 14 days to fund
Basic Requirements
  • Credit score of 600 or higher
  • Debt-to-income ratio under 40%
  • No current delinquencies
  • No bankruptcies, tax liens, judgments or non-medical related collections in the last 12 months
  • One open bank account
  • At least one credit card or revolving account opened

Peerform Loan Pros & Cons

As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:


  • Competitive Interest Rates- Peerform’s interest rates are competitive for borrowers with good credit histories.
  • Service a Wide Range of Borrowers – Peerform works with all types of borrowers from prime to those with poor credit. They also have a wide range of rates. They have one of the lowest minimum credit score requirements.
  • No Prepayment Penalty – The borrower can pay off the loan early without any fees.
  • Soft Pull Inquiry - Peerform allows for an initial soft pull inquiry so the borrower can get an idea of the options for which they may qualify.
  • Simple Application Process-The Peerform application process is quick and easy.


  • No Joint Borrowers – Peerform does not allow for joint borrowers.
  • Potential to Go Unfunded – There is a possibility that your approved loan might end up not being funded. If investors do not want to invest in your loan, you will not be able to move forward.
  • Not Available in All States –Peerform does not operate in Connecticut, North Dakota, Vermont, West Virginia, Wyoming, or Washington D.C.
  • Potential to Go Unfunded –There is a possibility that your approved loan might end up not being funded. If investors do not want to invest in your loan, you will not be able to move forward.
  • Origination Fee – Peerform deducts a one-time origination fee of 1 to 5.00% of your loan amount directly from your loan funds. These fees should be considered in the pricing of your loan when you apply.
  • Low Max Amount – Peerform borrowers can only borrow up to $25,000. There are many other providers that go higher.

What Can a Peerform Personal Loan Be Used For?

Peerform loans can be used for debt consolidation, home improvement, car purchases, special purchases, moving costs, medical, wedding expense, or similar uses. Peerform loans cannot be used for post secondary education, including refinancing student loans.

  • Debt Consolidation

A Peerform personal loan for debt consolidation is used for paying off one or more prior unsecured loans with a new Peerform loan. Instead of multiple payments to multiple lenders you can create one payment to one lender. The advantage of a debt consolidation loan is that the payment and term are fixed so you know exactly when you’ll be out of debt.

Peerform also has an invitation-only debt consolidation program in which invited borrowers can borrow up to $35,000 to consolidate their debts. The idea is that you can take a high revolving interest credit card and save money by replacing it with a low rate fixed installment.

  • Home Improvement

Peerform home improvement loan is for home repairs or projects. The advantage of using a Peerform home improvement loan is the promptness of receiving the funds. It can help you bridge the gap in funding needs. Typically, it takes a month or more to get an equity line of credit on your home and there may be more fees and hoops to jump through.

  • Car Purchase

Peerform allows their personal loans to be used for car purchases without using the car as collateral. Many times car loans are cheaper but if you are unable to get credit that way, this is good option. Also many lenders require that the car be used as collateral, which will limit the type of car you can get. For example, with a personal loan you could use the funds to pay for a salvaged title or a classic car when with other lenders you wouldn’t be able to do that. You may be able to save on your auto insurance due to the fact that the car is not used as collateral, and you will not need to pay for gap insurance.

  • Wedding Expenses

You can use a Peerform loan to help plan your dream wedding. The costs can really add up when planning for your special day. Peerform can help with this.

  • Medical Expenses

Peerform loans for medical expenses help borrowers manage large, expected or unexpected medical costs. This can include costs for drugs, selective surgery, and adoption. Medical collections are the most common delinquency on borrowers’ credit. A Peerform loan can help you pay for those bills before they become delinquent.

  • Moving Costs

Peerform loans can help with your moving costs. For example, a loan could help with moving expenses if you went over budget or had some unexpected events happen during the move.

  • Peerform Application Process

The application process is a little longer than with other lenders because Peerform is a peer-to-peer company. You not only apply but also create a profile for potential investors to evaluate you as a risk and accordingly lend you money. You first click “apply now” in which you register with Peerform. You enter an amount and explain for what you would like to have the funds. You will then fill out a one-page form with some basic information such as name, address, social security number, date of birth, and income information.

You will also set up an account, requiring a username and password. You will agree to some disclosures and then click “get your rate.” Peerform then performs a soft credit pull to see if you are qualified to be listed on their platform. A soft credit pull will not affect your credit. Peerform will then give you a list of options for which you are pre-approved. Pick the loan you would like to apply for and Peerform will place it on its platform to be funded. Peerform will do a hard credit pull at this point.

If your loan is funded by investors, Peerform may require documentation to verify information that was submitted on your application. This may include paystubs, checking statements, proof of residence, proof of identification, and even tax returns if you are self-employed. This whole process may take up to two weeks. Once everything is in place, Peerform will send the funds directly to your bank account.

Peerform Loan is Best for..

Peerform is great for borrowers who may not be able to qualify for personal loans through traditional methods. Peerform looks beyond just the credit score, so those with lower scores might be able to qualify. 

Peerform has a lot of fees and those fees should always be considered when pricing a loan. If you need money quickly, Peerform is not the provider for you – it can take up to 14 days to fund and in some cases longer.