Transform Credit personal loans review: Borrow up to $7,000 even with bad credit
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- Max. Loan Amount
- $10,000
- APR
- Up to 35.99%
- Min. credit score
- Cosigner must have a minimum credit score of 750
Our verdict
Fast funding on loans up to $10,000 — but you’ll need a creditworthy cosigner to vouch for you.
Transform Credit personal loans are geared toward borrowers with bad or no credit history who want to borrow up to $10,000 with the help of a cosigner. Its cosigner policy makes it ideal for people who want to improve their credit and have a family member or friend with excellent credit who's willing to vouch for them.
Unlike payday and installment loan lenders that charge APRs up to 300% or more, Transform Credit's maximum APR is 35.99%. This rate is still pretty high, but it is a more manageable option for people who are often stuck paying sky-high rates or fees because they don't qualify for other loans. Plus, they can pay it off early with no penalty.
But to get a loan from Transform Credit, your cosigner must have a score of at least 750. And while many customers like the company, it has a Better Business Bureau (BBB) alert for a pattern of customer complaints.
Best for: Borrowers with poor credit who have a cosigner with excellent credit.
Pros
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Poor-credit borrowers may qualify
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Lower rates than short-term installment and payday loans
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No prepayment penalties or origination fees
Cons
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Cosigner must have a minimum 750 credit score
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Only available in 15 states
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Numerous customer complaints on the BBB
Is Transform Credit legit?
Transform Credit is a legitimate lender licensed to offer loans in 15 states. It’s headquartered in Chicago, Illinois, and has a customer service phone number. It has some bad reviews but also has thousands of satisfied customers who couldn’t get a reasonable loan any other way.
Transform Credit’s privacy policy is listed on its website and states how it processes and stores your information. It also uses encryption to protect the information you and your cosigner submit during the application process.
Who is Transform Credit best for?
Transform Credit is best for poor-credit borrowers looking to improve their credit rating by paying back their loan responsibly. It may particularly appeal to young people who need funds and have a parent willing to cosign.
But if you can’t repay the loan, your cosigner is on the hook for your payments. Because of this, it’s important to make sure your cosigner agrees to help before you submit their name on your application — as their credit score will drop by a few points.
What makes Transform Credit shine
Transform Credit stands out for offering loans specifically meant to help borrowers build credit or boost their existing scores. Plus, it doesn’t charge origination fees — like many lenders do — or prepayment penalties.
And, while its maximum APR of 35.99% is high for a loan, it’s much lower than what you’d pay with a short-term installment loan or a payday loan. The company also gets high marks from customers on Trustpilot, who praise its smooth processes and professional, knowledgeable and friendly customer service representatives.
Where Transform Credit falls short
While many customers give Transform Credit positive reviews online, the company currently has a BBB alert for a pattern of complaints. The complaints mention loan approvals without submitting an application — indicating fraud — and cosigners having hard credit checks performed without their consent.
It appears that applicants could name a cosigner without the cosigner knowing that their credit is being checked — although the company appears to have taken steps to avoid this going forward.
Service can be lacking at times. If you’re not an active customer, you must leave a message and wait for a callback, which could take a while. If you like Transform but are looking for a company with fewer complaints, consider other loans like Transform Credit.
Transform Credit loan details
| Minimum credit score/credit range | Cosigner must have a minimum credit score of 750 |
| APR | Up to 35.99% |
| Loan amounts | Up to $10,000 |
| Terms | 24 to 60 months |
| Approval turnaround | As soon as 24 hours |
| Availability | Available in: Arizona, California, Florida, Georgia, Idaho, Illinois, Iowa, Missouri, New Hampshire, New Mexico, Oregon, South Dakota, Utah, Virginia, Wisconsin |
| Fees |
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Contact info
| Phone number | 470-435-6300 |
| Customer service hours | Weekdays 8 a.m. to 8 p.m. CT Closed weekends and holidays |
| hello@transformcredit.com | |
| Address | 1440 W. Taylor Street Chicago, IL 60607 |
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How to qualify for a Transform Credit loan
With Transform Credit, there’s no minimum credit score requirement, since loans are based on your cosigner’s credit history. However, your cosigner must have a minimum credit score of 750 to help you qualify for a loan.
You’ll also have a better chance of approval if your cosigner is a homeowner.
How to apply
Follow these steps to apply for a loan with Transform Credit:
- Visit Transform Credit’s website and fill out the application.
- Wait for Transform Credit to send a link for your cosigner to register.
- Have your cosigner fill out a short application, including personal information, income and banking details.
- Wait for credit checks and verification of information submitted.
- Sign the loan agreement if approved and provide your bank account information to make payments.
Transform Credit lets you know how much you qualify for after it confirms your cosigner’s information and credit score. If approved, Transform Credit deposits your funds into your cosigner’s bank account in as little as one business day. Your cosigner can then transfer the funds to you.
How Transform Credit compares to other lenders
What is the Finder Score?
The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
Transform Credit reviews and complaints
| BBB accredited | No |
|---|---|
| BBB rating | C |
| BBB customer reviews | 3.76 out of 5 stars, based on 549 customer reviews |
| Trustpilot Score | 4.8 out of 5 stars, based on 2,760 customer reviews. |
| Customer reviews verified as of | 27 August 2024 |
Transform Credit gets mostly positive reviews on Trustpilot. Satisfied customers praise the lender’s smooth application process and quick funding. Many reviewers also comment on how professional, knowledgeable and courteous the customer service team is, and that they appreciated the extra steps taken to ensure there was no fraudulent activity.
However, some customers were unhappy to discover that their cosigner’s account received the loan proceeds instead of their own. On its website, Transform Credit says that the funds are disbursed to the cosigner on purpose, in an attempt to mitigate fraud risks.
But the BBB website paints another picture. There’s currently an alert for a pattern of customer complaints in four categories:
- Getting approved for loans customers didn’t apply for.
- Performing credit checks without prior consent.
- Getting signed up for the credit-builder program without authorization.
- Being added as a cosigner without consent.
As of August 4, 2022, the BBB said it “received a sufficient response from the business with a plan to alleviate the pattern.” A more recent note says that as of April 6, 2023, the business has not alleviated the pattern of complaints.
While complainants continue having similar issues as recently as July 2024, Transform Credit has responded to and resolved those problems. As a result, the BBB has raised its rating from an F to a C in less than a year.
What do people on Reddit say?
Several Reddit users say they successfully got loans from Transform Credit. They were pleased to have this option when they couldn’t get a loan elsewhere. A few point out that it can be difficult to contact customer service.
Other Redditors claim it’s a scam — that they never took out a loan but kept getting $5 taken out of their account. Based on comments in that thread, it seems some people may have accidentally signed up for the Credit Builder loan, which isn’t actually a loan. It’s a separate service to help you build credit.
Frequently asked questions
Why is the money paid out to my cosigner rather than me?
Your cosigner gets the money to avoid fraud and ensure they know about the loan. Your cosigner can transfer the funds to you immediately after receipt.
Does Transform Credit always require a cosigner?
Yes. Transform Credit has only one loan product, and that loan requires a cosigner. It’s meant to help people with poor credit or no credit history build their credit or improve their score.
Why do I have a charge from Transform Credit?
If you have a $5 charge from Transform Credit, that is your monthly payment on your Credit Builder “loan.” But it’s not a loan — it’s a service where your payments are reported to the credit bureaus as on-time loan payments, and it helps to boost your credit score.
What if my cosigner has another Transform Credit loan they’ve cosigned?
You can’t use them as a cosigner if the other loan is still open. To qualify as your cosigner, they can’t have an open loan with Transform Credit as a borrower or cosigner.
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