If you need to borrow money but dread the idea of dealing with a traditional bank, a peer-to-peer lender like PeerForm may be exactly what you need. PeerForm connects consumers who need to borrow cash with consumers who have money to lend. The end result is a mutually beneficial relationship that helps both parties achieve their goals.
Since PeerForm focuses mostly on loans for borrowers with poor credit, getting a loan approved through their platform may be easier than you think. It’s also worth noting that fixed interest rates are available and you can apply online and from the comfort of your home.
If you’re in the market for a personal loan but your credit score is less than stellar, keep reading to learn how PeerForm loans work, how to qualify, and who they’re good for.
Peerform Personal Loans: Key Takeaways
- Fixed interest rates from 5.99% to 29.99%
- Online application process
- Loan amounts from $4,000 to $25,000
- No prepayment penalties
- Origination fees between 1% and 5% depending on your creditworthiness
Peerform Personal Loans: A Solid Option for Borrowers with Poor Credit
If you have poor credit but need to borrow money, you already know how difficult it can be to find a loan with decent terms. PeerForm steps in to connect borrowers who may have made mistakes in the past with loan options that work for them. While you’ll pay a higher interest rate if your credit isn’t great, PeerForm considers factors other than your credit score when they approve you for a loan.
To qualify with PeerForm, you need to be at least 18 years old (19 if you live in Nebraska or Alabama) and a citizen of the United States. You need to have a valid address, bank account, and Social Security number as well.
When it comes to your finances, you need an established credit history with at least one revolving account in the past, no current delinquencies, and zero bankruptcies or liens in the last year. Finally, you need to have a debt-to-income ratio below 40%.
While you can’t use PeerForm loans to cover college tuition or other postsecondary educational expenses, you can access one of these loans for the following purposes:
- Debt consolidation
- Home improvements
- Medical expenses
- Moving and relocation
- Auto purchase
Interest rates on PeerForm loans can be as low as 5.99% or as high as 29.99%, depending on your creditworthiness. Keep in mind, however, that the reason you’re borrowing money can play a role in the interest rate you receive.
Peerform Personal Loans: What to Watch Out For
Like other personal loans geared to borrowers with poor credit, PeerForm comes with high fees. It all starts with the origination fee you’ll pay to to proceed through the loan process and get access to your funds. This fee can be 1% to 5% of your loan balance, and it’s deducted from the money you borrow. If you apply for a $2,000 loan and your origination fee is 5%, for example, you would only receive $1,900.
There are other fees that come into play if you struggle to make monthly payments. Late fees are assessed at a rate of 5% of the amount of the late payment or $15 (whichever is greater) once you’re 15 days late. An unsuccessful payment fee of $15 will also be charged if your payment is rejected by your bank based on insufficient funds. Also note that you’ll need to pay a $15 check processing fee each month if you choose to mail in a paper check instead of having your monthly payment deducted automatically from your checking account.
In addition to high fees, PeerForm loans are slightly limited in scope and length. You can only borrow up to $25,000 for starters, and repayment terms only last up to 60 months. Finally, you can only apply for a PeerForm loan as an individual since joint loans and cosigners are not allowed.
Also note that, while you can get a loan from PeerForm with a competitive interest rate as low as 5.99% if you have good credit, you would probably want to choose a different lender in that case. That’s because PeerForm charges an origination fees where many other lenders do not. If you have a great credit score and a history of responsible credit use, you should check out lenders that don’t charge any fees.
- Related: What is a Good Credit Score Range?
PeerForm Personal Loans are Best For:
- Borrowers with low credit scores who can’t qualify for a personal loan with a traditional lender
- Those who need to borrow less than $25,000
- People who prefer peer-to-peer lending platforms over traditional banks
How to Apply for a Personal Loan with PeerForm
With a smooth online application process, applying for a PeerForm loan is a simple task. Start by completing their online registration process with the following information:
- Your name
- Income and employment information
- Social Security number
- Loan amount and purpose
At some point during the process, you may also be asked to provide additional information to verify your identity. This could include a driver’s license or a copy of a bill with your name and address on it.
Once you complete the registration process, your personal loan listing will be placed on a platform where potential investors can consider it. You will also be offered a selection of personal loan alternatives to consider. If a investor decides to fund your loan, the paperwork will be processed right away with the goal of funding your loan within a few weeks. The money will be deposited directly into your bank account and you can begin making payments the following month.
If you need to borrow money for nearly any reason, a personal loan with a fixed interest rate and fixed monthly payment can be a smart option. PeerForm steps in to offer this type of loan to consumers with poor credit who may not be able to qualify elsewhere.
Still, you should never settle or assume one loan is better than others without comparing rates and terms first. Whether you have poor credit or excellent credit, take the time to shop around among several lenders to compare interest rates, loan terms, and fees.
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