Peerform takes a number of factors into consideration when deciding whether or not to approve you for a loan. Based on these factors, it will assign a rating to your loan, depending on its degree of risk. The lower your rating (i.e. 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 a line of credit.
Peerform may also not approve you if you have any of these negative events listed on your credit report in the past 12 months:
- Tax privilege
- Defaults (i.e. late payments)
- Collection of non-medical debts
Peerform doesn’t have a set income requirement, but it does set a maximum cap on your debt-to-income ratio (DTI) in order to be approved. You may not be eligible for a loan if your DTI ratio is above 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 might not be eligible for a loan if your debt repayments are over $ 400 per month.
Additionally, Peerform requires that you have at least one open bank account.
Co-signatories and co-borrowers
Peerform does not disclose if you are eligible to apply with a co-signer or co-borrower.