The average credit score of Americans varies by state, but the highest is California at 754. However, half of the state’s population will fall below that average. If you have bad credit, it can be hard to access loans and credit cards to finance large purchases.
Fortunately, there are many lenders that are open to lending to people with lower credit scores.
Peerform is a lender that matches individual lenders to individual borrowers, outside of traditional banks. The following Peerform review will give you a better idea of the pros and cons of applying for a loan from them.
Peerform Review: What are the Rates?
Peerform’s distinct method of matching individual investors with borrowers gives it a few unique pros and cons. First, you need a minimum credit score of 600 to qualify. The maximum personal loan you can receive from Peerform is $25,000.
Interest rates range from 5.99 percent to 29.99 percent, depending on your credit score and how large the loan is. You also need to make at least $10,000 a year. Additionally, your debt-to-income ratio must be below 40 percent, not counting your mortgage if you have one.
Advantages of Peerform
One of the biggest advantages of Peerform is that it offers debt consolidation services. These loans are larger than regular loans and can reach as high as $35,000. They also come at a lower interest rate, capping out at 25.05 percent for three-year loans.
This makes Peerform a great way to restructure credit card and other personal debts so that you can pay them back at a reasonable rate on a reasonable schedule.
Peerform also does not impose any prepayment penalties as other low credit lenders do. This means you can reduce your debt load faster and pay less interest over time.
The late fees that Peerform imposes are also relatively low. They are either 5 percent or $15, charged after an automatic 15 day grace period. Payments are made monthly, so a 15 day grace period each month is quite generous.
Disadvantages of Peerform
One of the largest drawbacks of choosing Peerform over other online low credit lenders is that they do not allow co-signing or collateralized loans. This means that you aren’t able to get a lower interest rate or qualify if your credit score is too low.
There is also an initial fee to borrowing, up to a maximum of five percent. This means that if you borrow $1,000, for example, Peerform can charge you up to $50, and you will only receive $950.
Unfortunately, Peerform is not available to borrowers in a few states. Connecticut, West Virginia, Wyoming, Vermont, Washington D.C., and North Dakota residents are all out of luck.
Funding can also take up to a week to come through. While this isn’t too long in the grand scheme of things, it makes Peerform a poor fit if you are in an immediate financial bind.
Borrowing from Peerform is Best for Low Credit Score Borrowers
The above Peerform review offers you some insight into how the site works and the major pros and cons of taking out a loan with them.
For more information about accessing loans with a low credit score, check out the bad credit loans section of our blog.