Last Updated on May 15, 2016 by Tim
Peerform is a new peer-to-peer online lending company. This lending concept is fairly easy to understand. It basically serves as an alternative to the traditional options. Instead of borrowing money from banking institutions, there are individual investors who are willing to lend you their cash.
This means that your loan may be funded by several individuals, but how do they know where to place their money? These lenders will give you a grade, based on your preliminary data that helps them determine whether or not they will lend money to you. Peer-to-peer loans are normally made available to a number of people as the credit requirements are not that strict. The only downside is that these loans typically come with higher Annual Percentage Rate (APR).
How to Qualify for a Loan with Peerform
Peerform, unlike other lending companies, does not rely on your credit rating when determining your worth. This peer-to-peer online lender has designed a special algorithm, which it calls the “Loan Analyzer.” The system takes many factors into account when evaluating borrowers. Applicants who receive a score that is lower than 600 will be automatically declined.
Interested applicants should also have a debt-to-income ratio below 40 percent, and have no negative financial history (bankruptcies, judgments, or current delinquencies) on their credit rating for the past year. In addition, borrowers must have at least one open bank account, as well as a revolving account like a credit card.
Peerform is currently serving the following states: Alaska, Arizona, Alabama, Connecticut, California, Florida, Hawaii, Georgoa, Illinois, Maryland, Louisiana, Mcihigan, Missouri, Minnesota, North Carolina, Nevada, New Hampshire, New York, Oregon, Ohio, Texas, Tennessee, Virginia, and Washington.
Applicants with a lower credit score and have not been able to receive an approved personal loan elsewhere can consider Peerform. This is because the company offers three-year terms for approved loans.
More on Peerform’s Personal Loans
Peerform provides unsecured personal loans with fixed APRs that range from 7.12 to 28.09 percent. The company allows you to borrow between $1,000 to $25,000, with a maximum term of three years. Once you have provided your basic personal information, you will be given a grade. This will let you know what APR you will be eligible for.
The grades range from AAA to DDD, with the former being the highest. The AAA rating is given to applicants with a credit score of 720+, while those with 600 to 659 will receive a grade of CC+. Those with a credit score that is below 600 will have a DDD grade.
The Pros and Cons
The biggest advantage of borrowing money through Peerform is the minimum credit score requirement of 600. There is a bigger chance of getting approved here than other online lenders with stricter requirements. The downside, however, is the steep interest rates. Just think about it as a better alternative to paying on credit card debt. Another downside is the short loan term, but you can postpone your payment for up to 10 days, as long as you inform the company in advance.
Application Process and Documents Needed
You only need several minutes to apply and see whether Peerform will lend you money and on what terms. Peerform allows you to postpone payments up to 10 days, just notify their customer support four business days before your payment is due. In addition, this peer-to-peer online lending company provides a number of steps that you need to take in order to apply for a personal loan on its site.
The first step is to register and give your basic personal information, including your full name, address, and salary. The website will then study your data to determine what terms and rates will apply to you. If you are eligible for a loan, these rates and terms will appear on the next page. You will then have to choose which set up is the most reasonable for you. Once you have chosen your desired loan term and rate, it will be listed on the website for investors to view and see who among them will want to fund it.
These listings usually last a maximum of two weeks. It could take anywhere from a day to two weeks in order to complete the funding process. Peerform does require a proof of your salary and identity, but you can easily upload photos of your documents. Your bank and phone details may also be required to be verified.
Peerform’s personal loan has no application fee and prepayment penalty. Its origination fees range from one to five percent, depending on your loan grade. These origination fees are deducted from the loan amount, so make sure to consider this into the amount that you wish to borrow.
If you are more than 15 days late on your loan payment, you will incur a fee that is five percent of your monthly due. Unsucessful payments will be charged $15 for every failed attempt, but may be less depending on where you reside. Make sure to study all your options, as well as the terms and conditions, before applying for a Peerform loan. This will give you a sound mind.