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Peerform is a peer-to-peer lending site that targets borrowers who don’t have the best credit scores. Its interest rates and fees are fairly competitive, so it can be a good choice for a personal loan regardless of your credit.

Minimum Requirements for Obtaining a Loan through Peerform

The online minimum requirements that Peerform has for borrowers are a credit score of at least 600 and 1 year or more of credit history. Your debt-to-income ratio can’t be greater than 40 percent, but there is no minimum gross income requirement. The lender states that the average credit score for its borrowers is 665 with an average annual gross income of $85,000. The average debt-to-income ratio is 19.3 percent.

Loan Options with Peerform

Peerform offers loans with APR ranging from 7.12 percent to 29.99 percent, and loans can be anywhere from $1,000 to $25,000. The only term option for Peerform’s personal loans is 3 years, and it can take anywhere from 3 business days to 2 weeks to receive your loan.

The lender has no prepayment penalty, and its origination fee is between 1 and 5 percent of the total loan amount. Fees include a $15 charge for unsuccessful payments, a $15 processing fee for personal checks and a late fee of $15 or 5 percent of your payment amount, whichever is greater.

Peerform’s Grading System

Online lenders apply grades to borrowers, and Peerform is no exception. Peerform uses a wide range of factors to determine borrower grades. Grades range from AAA, which is the highest, to DDD, which is the lowest. Borrowers with higher grades can obtain loans with lower interest rates, and Peerform lists the interest rate for each grade on its site. Peer lenders are also more likely to receive funding, since investors take these grades into consideration.

The Peerform Application Process

To apply for a loan using Peerform, you fill out a form on the lender’s site. You’ll need to provide personal information, including information on your income and credit history. When you submit that form, Peerform will run a soft credit check to provide you with a rate quote. Once you finalize your decision to get the loan, Peerform runs a hard credit check before approving it. The soft credit check doesn’t impact your credit score at all, but the hard credit check can, which means you can see what type of rate Peerform will offer you without affecting your credit score.

Peerform then puts your loan request on its marketplace, where investors can choose to fund the loan.

How Peerform Stacks Up to Other Lenders

Peerform is one of the newer online lenders, as it started in 2014 and has issued over 4,000 loans. Compared to other online lenders, Peerform is similar in terms of loan amounts, interest rates and origination fees. However, there are online lenders that offer larger loans, lower interest rates and more options. Those lenders may have higher minimum requirements, though. Banks and credit unions will usually have lower interest rates than Peerform, but they will also have stricter minimum requirements.

Peerform doesn’t allow you to change your payment due date, but you do have a 15-day grace period before the lender will charge you a late fee.

Effect on Your Credit Score

When you get a loan through Peerform, it reports your payments to TransUnion, one of the three credit bureaus that create credit reports. That means that as long as you make your payments on time, you can improve your credit score. If you miss payments or don’t pay on time, Peerform may report that or it may not.

Final Thoughts

Overall, Peerform is a competitive option when it comes to online peer-to-peer lending sites. Since its minimum requirements are lower than most other online lenders, it’s a good option for borrowers who don’t have high credit scores. Keep in mind that you’ll likely end up with a high interest rate if you have poor credit.

Most borrowers who use Peerform take out their loans to pay back or consolidate their debt. If that’s your intention, make sure that you’ll save money this way by either paying off your debt more quickly or obtaining a lower interest rate through the loan than you have right now.

Since the vast majority of online lenders, including Peerform, allow you to get a rate quote with only a soft credit check, it makes sense to look around and compare different options. Go through the first stage of the application process to get your quote and then compare it with other lenders. Every lender has its own grading system and criteria, so you may find that you get the best rate quote with Peerform, or it may be with another lender.