Peerform takes a number of factors into consideration when deciding whether or not to approve you for a loan. Based on these factors, they will assign a score to your loan, depending on how risky it is. The lower your rating (ie the higher the risk), the higher your rates will be.
Meeting the requirements below does not guarantee approval, but they can help you decide if a personal loan is right for you.
Credit score requirements
You will need a minimum FICO score of 600. Additionally, you will also need at least one revolving account listed on your credit report, which can be a credit card or line of credit.
Peerform may also not approve you if you have any of these negative events listed on your credit file within the last 12 months:
- Tax privilege
- Arrears (i.e. late payments)
- Non-Medical Debt Collection
Peerform has no set income requirements, but it does set a maximum cap on your debt-to-income ratio (DTI) in order to be approved. You may not qualify for a loan if your DTI ratio is over 40% (not including your mortgage payment, if you have one).
Your DTI ratio is a measure of your total monthly debt payments divided by your total monthly income. For example, if you earn $1,000 per month, you may not qualify for a loan if your debt payments are over $400 per month.
Additionally, Peerform requires that you have at least one open bank account.
Co-signers and Co-borrowers
Peerform does not disclose whether you are allowed to apply with a co-signer or co-borrower.