Peerform, an online lender that once offered peer-to-peer personal loans, no longer accepts new loan applications.

The lender offered mid-sized loans to consumers with fair and bad credit (scores below 690) using the peer-to-peer model, by which a lender connects borrowers with investors who can fund their loans.

Peerform’s loans were from $4,000 to $25,000, had an annual percentage rate of 5.99% to 29.99% and a three-year repayment term.

Alternatives to Peerform

Few lenders offer peer-to-peer loans these days, but online lenders, banks and credit unions may offer personal loans to borrowers with less-than-perfect credit. Compare lenders to find the one that can make you the best loan offer.

See if you pre-qualify for a personal loan – without affecting your credit score

Just answer a few questions to get personalized rate estimates from multiple lenders.

Online lenders

Some online lenders seek borrowers with strong credit, while others lend to consumers with low credit scores or blemished credit history. A consumer-friendly lender keeps annual percentage rates at or below 36% and reports payments to all three major credit bureaus.

These lenders offer personal loans to borrowers with fair or poor credit.

LendingClub previously offered peer-to-peer loans and now makes direct-to-consumer loans. LendingClub is a strong choice for borrowers looking to consolidate high-interest debts because it offers direct payment to creditors and discounted rates on debt consolidation loans.

Upgrade lends to borrowers across the credit spectrum but has softer credit requirements than good- or excellent-credit lenders. Upgrade provides rate discounts and credit-building features, including a credit report summary and credit score simulator.

Upstart uses more than just your credit report and financial information to decide whether you qualify for a personal loan. The lender considers information like your employer and education in its underwriting. Upstart says it can make an approval decision instantly and fund a loan the following business day.

NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Loan amount


Loan amount


Loan amount


Credit unions

Credit unions typically accept lower credit profiles than banks and some online lenders. In addition to credit and income, a credit union may consider membership history when reviewing a personal loan application, which may help fair- or bad-credit borrowers qualify.

Alliant has broad membership requirements compared to other credit unions. The credit union boasts 24/7 customer service and can fund a loan the same day you apply for it. Loan amounts are from $1,000 to $50,000 and repayment terms are one to five years.

Navy Federal caters mostly to military members and their families. Personal loan rates are capped at 18%, which is true for all federal credit unions. Navy Federal’s personal loans are convenient and flexible, with repayment terms up to five years and the option to get a joint, co-signed or secured loan.


Bank personal loans are sometimes reserved for existing customers with good or excellent credit, but some banks offer personal loans to non-customers, too.

U.S. Bank offers more flexible loans to existing customers, with loan amounts up to $50,000, repayment terms of one to seven years, and near-instant funding. Non-customers can borrow up to $25,000 and repay the loan over one to five years, and funding may take up to four days. The bank operates in 26 states.

TD Bank lends in 15 East Coast states and Washington, D.C., and you don’t need to be an existing customer to get a personal loan. The bank can quickly approve and fund a loan. Amounts are from $2,000 to $50,000, and repayment terms are three to five years.

How to compare personal loans

Here are a few important features to compare between lenders.

APR: A loan’s APR represents its full cost, including interest and fees. This provides an apples-to-apples comparison across lenders and other financial products, like credit cards. The option with the lowest APR is the least expensive overall.

Monthly payment: Even a loan with a low APR may have monthly payments that don’t fit into your budget. Typically, a lender will show you your projected monthly payment when you pre-qualify. Use a personal loan calculator to see what loan amount, rate and repayment term fits your budget.

Origination fee: An origination fee is a percentage of the loan amount — usually 1% to 10% — that a lender takes out before sending you the funds. It’s a common fee among online lenders who target fair- and bad-credit borrowers. Though it’s calculated into your APR, it’s still important to know if you’ll be charged this fee and by how much it will reduce your loan amount.

Borrowing requirements: Some lenders publish their borrowing requirements, which can include minimum credit score, maximum debt-to-income ratio and minimum length of credit history. Websites like NerdWallet also gather this information from lenders when they review personal loans.

Other features: Compare other personal loan features like funding time, whether the lender offers credit-building assistance, and customer service availability. None of these features outweighs a low rate and affordable monthly payments, but they can help break the tie between two competing offers.

Annie Millerbernd

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