Peerform review: Peer-to-peer loans with fees that can add up

Woman using her laptop while going through some paperworkImage: Woman using her laptop while going through some paperwork

In a Nutshell

Peerform is a peer-to-peer lender that may be a good alternative to payday loans and credit cards. But Peerform personal loans have terms of three to five years, and they include a number of fees.
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Peerform is no longer accepting new applications. For another option, shop for personal loans on Credit Karma.


  • No prepayment penalty
  • Consolidation loans available for high-interest credit card debt by invitation only


  • Personal loans less than $4,000 aren’t offered
  • Origination fee subtracted from loan funds
  • Late, unsuccessful-payment and check-processing fees

What you need to know about Peerform personal loans

The Peerform peer-to-peer lending platform connects you with individual investors who may be willing to fund your personal loan. You can apply for a Peerform personal loan for a number of uses, including debt consolidation, wedding expenses, home improvement projects and medical expenses.

Since Peerform loans are unsecured personal loans, you won’t need collateral like a house or car to back up your borrowing, and you’ll get a fixed interest rate and monthly payments.

Consolidation loans available for high-interest credit card debt

If you’re struggling with high-interest credit card debt, you may benefit from Peerform’s consolidation loan program, which offers qualified people loans ranging from $10,000 to $35,000 to pay down credit card balances.

With a consolidation loan, you can pay down multiple high-interest credit cards and simplify your finances by making one monthly payment instead of several. If you’re considering this, it’s a good idea to take a look at debt consolidation pros and cons.

Should you take out a loan to pay off credit card debt?

Fees that add up

While Peerform is upfront about its fees, they can add up quickly and make your personal loan more expensive. Here are the fees you can expect.

  • Origination fee: When your loan is issued, an origination fee ranging from 1% to 5% is subtracted from your loan funds.
  • Unsuccessful-payment fee: You’ll be charged an unsuccessful-payment fee if an automatic deduction from your bank account is rejected.
  • Late-payment fee: If your payment is at least 15 days late, you’ll face a late fee that’s 5% of the amount of your unpaid payment or $15, whichever is greater.
  • Check-processing fee: If you choose to make your loan payment by check rather than direct debit from your bank account, you’ll be charged a check-processing fee of $15 for each payment.

No prepayment penalties

Peerform offers some flexibility for repaying your loan — you can make early payments without incurring a prepayment penalty.

Peerform personal loan details

Here are a few other things you should know about Peerform loans.

  • Minimum requirements: To be considered for a personal loan, you must have a FICO score of at least 600, which is considered “fair” credit. You’ll also need a debt-to-income ratio below 40%, not including mortgage debt.
  • Prequalification available: You can check your estimated rate without affecting your credit scores if you want to compare potential loan rates with other lenders. But keep in mind that prequalification doesn’t guarantee loan approval or that you’ll end up with that rate.
  • Investor options: Since Peerform’s peer-to-peer model allows investors to evaluate loans on their own merits, you may be able to get a loan from Peerform that you wouldn’t be able to get from a traditional bank.
  • Repayment methods: You can repay your loan with automatic bank-account withdrawals or by check.
  • Not available in all states: Peerform personal loans aren’t available in Connecticut, North Dakota, Vermont, West Virginia, Wyoming or Washington, D.C.

Who a Peerform personal loan is good for

A Peerform personal loan may be a good option for you if you’re looking for a way to get out of high-interest credit card debt and qualify for its debt-consolidation program. It may also make sense if you’ve been rejected by traditional lenders and feel confident that you can pay off a personal loan over a three- or five-year term.

If you have excellent credit, Peerform can offer some very competitive interest rates.

How to apply with Peerform

You can apply and check your rate for a Peerform personal loan online. To apply, you’ll need to have some personal information ready, including your date of birth, address, phone number and email address. You’ll also be asked to provide your income and monthly housing payment.

Once your information is reviewed, you may be presented with some loan options. After you select the terms that work for you, your loan inquiry will be listed on the Peerform marketplace for investors to review.

You’ll also be asked to verify your identity by submitting your driver’s license, military ID, passport, or state or federal ID. In addition, you’ll need to show proof of income by submitting two recent pay stubs.

About the author: Anna Baluch is a freelance personal finance writer from Cleveland, Ohio. You can find her work on sites like The Balance, Freedom Debt Relief, LendingTree and RateGenius. Anna has an MBA in marketing from Roosevelt Un… Read more.