Transform Credit Personal Loans Reviews 2023


Taking out a personal loan is one way to access extra funds for big purchases, debt consolidation, home improvements, medical expenses, and more. With a personal loan, you receive a lump sum of cash upfront and repay it over time in fixed monthly installments. Interest rates and terms vary between lenders.

One company providing personal loans to borrowers is Transform Credit. But are their loans a wise choice? This review will provide an in-depth look at Transform Credit personal loans to help you decide if they are the right lending option for your needs. We will overview loan amounts, rates, fees, qualifications, application process, customer reviews, pros and cons, and alternatives to consider.

Transform Credit Overview

Transform Credit is an online lender that offers personal installment loans from $500 up to $15,000. They market themselves as a company aiming to provide access to flexible financing options for borrowers looking to build their credit.

Transform Credit offers both secured and unsecured personal loans. Secured loans require collateral like a vehicle title to secure the loan. Unsecured loans do not require collateral.

Loan terms range from 9 to 48 months. This provides multiple options to find a term length that fits your budget and goals. Shorter terms mean higher monthly payments but less interest paid over the life of the loan. Longer terms have lower payments but more interest.

Interest Rates and Fees

Interest rates at Transform Credit range from around 7.99% to 35.99% APR. Your actual rate depends on your credit score, income, and other eligibility factors. Lower credit scores get higher rates.

There are also origination fees from 1% to 10% deducted from your loan amount. For example, if approved for a $5,000 loan with a 5% origination fee, you would receive $4,750 while having to repay the full $5,000.

Late fees, returned payment fees, and early repayment penalties may also apply if stipulated in your loan agreement. Always read the fine print to understand the full costs.

Application Process

The application process for Transform Credit personal loans takes place fully online. To start, you need to provide some basic personal information to determine your preliminary eligibility.

Next, you’ll need to provide details on your employment, income, monthly expenses, and banking information. Transform Credit says they use this data to determine your ability to repay the loan.

Finally, you must e-sign the loan agreement if approved. Transform Credit claims they can fund approved loans in as fast as 1 business day via direct deposit. This makes them a decent option if you need money quickly.

Minimum eligibility requirements are:

  • At least 18 years old
  • Valid ID
  • Monthly income of $1,800
  • Checking account

Your credit score will impact the interest rate you are offered but Transform Credit claims they will work with borrowers across the credit spectrum including bad credit.

Benefits of Transform Credit Personal Loans

Transform Credit personal loans provide several advantages that may make them worth considering for some borrowers:

Fast Funding

One of the biggest benefits is fast access to funds if approved. Transform Credit promotes direct deposit of your loan within 1 business day. This beats the traditional 1-2 week funding times of many banks. If you have an urgent expense, a quick turnaround can be helpful.

Flexible Loan Terms

You have multiple term length options from 9 to 48 months. This flexibility allows you to choose an affordable monthly payment that aligns with your budget. Short-term terms are good if you want to pay less interest. Long terms help lower the monthly costs.

No Collateral Required

Transform Credit unsecured personal loans do not require any collateral like a house or car. This differs from secured loans or home equity loans that do need collateral. The unsecured feature means less risk of losing assets.

Online Application and 24/7 Access

You can apply for a Transform Credit personal loan anytime online. There are no physical branches to visit. The online portal also provides 24/7 access to monitor your loan account. Everything can be managed digitally.

Multiple Loan Uses

Transform Credit allows you to use personal loan proceeds for almost any legal purpose. Common uses are consolidating high-interest debt, financing large purchases, covering medical bills, making home improvements, paying for a vacation, or supplementing a financial emergency. The flexibility makes personal loans appealing.

Competitive Interest Rates for Some Borrowers

Borrowers with excellent credit scores in the high 600s or above may qualify for Transform Credit’s lowest advertised rates around 8% APR. This is on par with top lenders like Lightstream and SoFi which offer rates starting from 5.99%. So it is possible to get reasonably competitive pricing.

Potential Drawbacks of Transform Credit Loans

While Transform Credit personal loans offer some advantages, there are also some potential downsides to consider:

Strict Eligibility Requirements

Getting approved requires meeting Transform Credit’s eligibility and underwriting requirements. They heavily weigh your income, credit score, and debt-to-income ratio. If you have bad credit or low income, it can be difficult to qualify. Minimum credit scores in the high 500s are generally needed for the best approval odds.

Origination Fees

There are origination fees from 1% to 10% on Transform Credit loans. So on a $10,000 loan with a 5% fee, you’ll pay $500. Origination fees essentially raise the cost of borrowing. Not all lenders charge them.

Late Fees and Penalties

Make sure to make payments on time to avoid late fees from Transform Credit. Late or returned payments also incur penalties plus added interest due to the longer repayment timeline. Paying late negatively impacts your credit score too.

Credit Inquiries and Impact

Applying for a Transform Credit loan requires a hard inquiry on your credit report. Too many inquiries in a short period can slightly lower your credit score. Also, a new loan shows up on your credit report and can impact your credit mix and utilization ratios. Not all impacts are positive.

Transform Credit Customer Reviews and Complaints

Transform Credit has mixed customer reviews and complaints across third-party sites:

Positive Reviews

Positive reviews mention receiving loan funding quickly, reasonable interest rates, friendly customer service, and an easy application process. Some examples:

  • “The loan process was fast and easy. I went from application to funding within two days.”
  • “Happy I was approved with my low 600s credit score. The rate of 12% APR was much better than alternatives.”
  • “The loan officer was very helpful in explaining the repayment terms and answering all my questions.”

H3: Negative Reviews

Negative reviews cite high-interest rates for poor credit borrowers, strict credit requirements, and poor customer service. Some examples:

  • “Was declined for having a 550 credit score. Waste of time applying.”
  • “I have fair credit but my interest rate was over 29% APR which is crazy high.”
  • “The loan service representatives were rude and provided very little support.”

Common Complaints

Some common complaints include:

  • Excessively high-interest rates for bad credit borrowers
  • Origination fees inflate the cost
  • Difficult to qualify if a credit score is under 600
  • Poor customer service and lack of responsiveness
  • Confusing terms and conditions

Alternatives to Consider

Here are a few alternatives to consider if you need a personal loan:

Peer-to-Peer Lending

Platforms like LendingClub and Prosper connect individual investors providing the loans. Often offer lower rates for borrowers with good credit.

Payday Loans

Small, short-term loans of a few hundred dollars. Easy to qualify but very high rates. Use as a last resort.

Credit Cards

Many cards offer 0% intro APR promotions on purchases and balance transfers. Allows you to pay off debt over months without interest.

Traditional Bank Loans

Major banks like Wells Fargo, Chase, and Bank of America may offer personal loans with competitive rates and no origination fees for qualifying borrowers.

401(k) Loans

Lets you borrow against your 401(k) balance to access funds without a credit check. Pay interest to yourself. Must repay to avoid penalties.

Home Equity Loan

Lets you tap home equity to get a lump sum at lower interest than credit cards. Risk losing the home if unable to repay.

FAQs about Transform Credit Personal Loans

Here are answers to some frequently asked questions about Transform Credit personal loans.

H3: What credit score is needed for Transform Credit?

Transform Credit requires a minimum credit score in the high 500s for the best approval odds on a personal loan. Borrowers with scores of 600 and above qualify for their lowest advertised rates.

 How long does it take to get a Transform Credit loan?

Transform Credit claims they can deposit approved loan funds into your bank account as fast as 1 business day. The online application takes around 5 minutes.

Where is Transform Credit located?

Transform Credit operates online and is headquartered in California. They are in dozens of states but are not available everywhere. Check eligibility before applying.

What do Transform Credit loans cost?

Interest rates range from 7.99% to 35.99% APR based on your creditworthiness. There are also origination fees from 1% to 10% of the loan amount. Paying late leads to extra fees and interest.

Does Transform Credit check credit?

Yes, submitting a Transform Credit loan application requires a hard credit inquiry. This can temporarily lower your credit score. They review credit reports and credit scores to make approval decisions.

Can Transform Credit garnish wages?

If you default on a Transform Credit personal loan, they can potentially take legal action to garnish your wages or put liens on your properties. Make payments on time to avoid major consequences of default.

Is Transform Credit legitimate?

Yes, Transform Credit is a legitimate online lender. They are based in California and registered to operate in many states. Make sure to read all loan terms carefully before accepting an offer.


In summary, Transform Credit provides a quick and convenient option for borrowing personal loans online. Approval is possible for borrowers across the credit spectrum which expands access. Fast funding in as little as 1 day is a major perk.

However, be sure to compare interest rates and fees from multiple lenders. Transform Credit tends to offer higher rates for borrowers with fair credit or below. Their origination fees also increase costs. Carefully evaluating the overall value can help determine if one of their loans is best for your financial situation.

Consider what monthly payment works for your budget and how long you need to repay the loan. Analyze the full costs both upfront and over the lifetime of the loan. Personal loans allow flexibility but also require fiscal responsibility and wise use of credit.

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