Peerform Review for 2024

Based in New York, Peerform is a peer-to-peer lending platform that offers personal loans even for people with bad credit. Peerform judges your application with a more holistic approach to loan approval than just your FICO score using the Loan Analyzer.


As with most other peer-to-peer lending platforms, Peerform assigns a grade level based on your financial and credit information, and they base your loan rates on that rating.

Investors must then fund Peerform personal loans through its lending platform. Think of it as a Kickstarter campaign, except investors get the loan interest as a return on their investment in you.

You might have several investors take a stake in your loan, or have your entire personal loan funded by one. It may sound like a lengthy process, but in reality, it’s pretty quick and comparable to other lenders. If this sounds like an intriguing process, keep reading to find out more about Peerform personal loans.

Overview of Peerform’s Loan Offerings

Peerform offers various personal loans to suit different financial needs and circumstances. Understanding these options and how they align with your goals is the key to selecting the right loan. Loans are available in every state except Connecticut, North Dakota, Vermont, West Virginia, Wyoming, and Washington D.C.

Diverse Loan Options for Varied Needs

Peerform stands out in the personal loan market by catering to a wide range of borrowing needs. Whether you’re looking to consolidate debt, fund a wedding, undertake a home improvement project, handle medical expenses, or cover moving costs, Peerform has got you covered. The flexibility of loan purposes makes it a versatile choice for borrowers with diverse financial goals.

Loan Amounts and Interest Rates

The loans offered by Peerform range from $4,000 to $25,000, making them accessible for both minor and significant financial requirements. What’s particularly noteworthy is that all Peerform loans are unsecured. This means you won’t need to worry about collateral, which is a relief for those who might not have assets to pledge.

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Peerform’s Ideal Borrower Profile

Peerform targets a specific borrower demographic, focusing on those with certain financial profiles. Knowing if you fit this profile can help in determining your chances of loan approval.

Credit Score and Financial History

The typical borrower profile for a Peerform loan is quite specific. To start with, you’ll need a minimum credit score of 600. However, the average Peerform borrower has a credit score around 665, suggesting that those with scores slightly above the minimum may have better chances of approval and favorable loan terms.

Income and Employment

While Peerform doesn’t set a strict income threshold, the average borrower earns about $85,000 annually. This isn’t a mandatory figure, but it gives a sense of the financial standing of most Peerform clients. Stable employment and a consistent income source are significant factors in the evaluation process.

Debt-to-Income Ratio (DTI)

Your DTI ratio is another critical aspect of your application. Peerform requires a DTI below 40%, excluding mortgage debt. However, the average DTI for borrowers is much lower, around 19.3%. A lower DTI indicates to Peerform that you’re more likely to manage loan repayments effectively without straining your finances.

The Detailed Process of Applying for a Peerform Loan

Peerform allows you to check your interest rate with a pre-approval form. Your actual rate depends on your credit score, loan amount, loan term, and credit history. This step is a bonus because the lender does not perform a hard credit check at this point. However, once your personal loan is approved, they will conduct a hard inquiry to confirm your credit information.

After formally applying, you can pick your repayment terms and monthly payment amount from various loan options. Your loan request is then listed on the marketplace platform to get funded by investors.

While that’s happening, you’ll need to verify your identity by providing copies of a few documents like your driver’s license, bank statements, and pay stubs. The entire process can take three business days to two weeks. So keep this in mind if your funding needs are time-sensitive.

Next Steps After Approval: Managing Your Peerform Loan

After your loan is fully funded and approved, the funds are sent directly to your bank account. This process is relatively quick, but the exact timing can vary from a few business days to a couple of weeks.

Once the loan is disbursed, you’ll start making monthly payments as per your agreed schedule. Be aware of potential fees: there’s a $15 charge for unsuccessful payments and late payment fees kick in 15 days after a missed payment, calculated as either 5% of the payment due or $15, whichever is greater. If you opt to pay by check, there’s also a $15 processing fee. However, Peerform doesn’t penalize you for early repayment of the loan.

Peerform’s Distinctive Lending Approach

Peerform sets itself apart with a focus on near-prime borrowers who might not have perfect credit, but are still creditworthy.

Alternative Credit Assessment

Unlike many lenders that rely heavily on FICO scores, Peerform uses a unique algorithm to assess creditworthiness. This algorithm considers various factors, providing a more holistic view of your financial health. This approach is particularly beneficial for those whose credit scores might not fully reflect their ability to repay a loan.

Catering to a Broader Range of Borrowers

Peerform’s inclusive lending model opens doors for individuals with fair or near-prime credit scores, who are often overlooked by traditional banks. By focusing on this segment, Peerform fulfills the needs of a diverse group of borrowers, offering them opportunities to secure personal loans that might otherwise be inaccessible.

Peerform’s History

Peerform has charted an intriguing course since its inception, highlighting its significant role and adaptability within the peer-to-peer (P2P) lending space.

From Wall Street to Main Street

Founded in 2010 by former Wall Street executives, Peerform was born out of a desire to democratize access to credit, particularly during a time when traditional banks were tightening their lending criteria due to the financial crisis. This mission positioned Peerform as a key player in the non-traditional lending arena, offering a vital alternative to conventional bank loans.

Adapting to Market Changes

Over the years, Peerform has evolved, notably shifting its focus in 2014 to attract institutional lenders for funding whole loans. This strategic move, diverging from the typical P2P model of individual investors, demonstrates Peerform’s ability to adapt to the changing dynamics of the financial market while still serving a diverse range of borrowers.

Analyzing Peerform Customer Reviews

When considering a loan from Peerform, it’s essential to find out what customers are saying about their experiences. Peerform’s customer feedback paints a comprehensive picture of the company’s services.

With an A rating from the Better Business Bureau, Peerform is generally viewed positively for its customer service. However, it’s important to explore various review platforms to get a well-rounded view of the lender.

Prospective borrowers should pay attention to comments on the ease of application, clarity of loan terms, and responsiveness of customer service. While positive reviews can be reassuring, it’s equally important to consider any negative feedback, as it can highlight areas where Peerform may fall short. This balanced approach in evaluating reviews can aid in making an informed decision about whether Peerform aligns with your borrowing needs.

Preparing to Apply for a Peerform Loan

Before diving into a loan application with Peerform, there are several key considerations to keep in mind.

Assessing Your Financial Health

You need to review your finances comprehensively. This means understanding your debt-to-income ratio and making any possible adjustments to improve it. Even small reductions in debt can enhance your eligibility for a loan.

Credit Reports and Scores

Check your credit report for any inaccuracies and be aware of your FICO score. As Peerform caters to a wide range of credit scores, knowing where you stand can help set realistic expectations about the terms you might receive.

Shopping Around

While Peerform offers bad credit loans, it’s always wise to compare offers from different lenders. Many lenders perform soft credit checks for pre-approvals, which don’t impact your credit score. However, be cautious and confirm the type of inquiry each lender conducts.

Understanding Credit Inquiries

Remember that a formal loan application with Peerform, or any lender, will result in a hard credit inquiry, which can affect your credit score. Strategize your applications to minimize the impact on your credit.

By considering these factors, you can better prepare for applying for a Peerform loan, ensuring you make a well-informed financial decision.

Bottom Line

Peerform offers a distinctive option in the world of peer-to-peer lending, particularly for individuals who might not have perfect credit but are still creditworthy. Its unique approach to evaluating loan applications, coupled with its range of loan amounts and purposes, makes it a viable option for various borrowers.

As with any financial decision, you should review your own financial situation, compare options, and carefully consider the pros and cons before proceeding. Peerform’s journey in the lending space, along with its evolving strategies and customer feedback, underscores its commitment to providing accessible loan options. By keeping these factors in mind, you can make a more informed decision about whether Peerform is the right fit for your personal loan needs.

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