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  • The Ascent
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  • FreedomPlus Personal Loans Review

FreedomPlus Personal Loans Review: Top Pick for Debt Consolidation

by: Dana George  |  Aug. 31, 2020

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

FreedomPlus was launched to help people with so-so credit get access to personal loans over the internet. FreedomPlus uses some nontraditional underwriting criteria to make lending decisions, offering its customers discounts for saving for retirement or adding a cosigner -- two things that aren’t very common in personal lending. Read on for our complete FreedomPlus loan review, which will show you how it compares on personal loan rates, repayment terms, credit score requirements, and more.

Ratings Methodology
Lending Partner Best For Rating Min. Credit Score Loan Amounts APR Range
Logo for FreedomPlus.

FreedomPlus

Best For:

Diverse offerings

Rating image, 4.0 out of 5 stars.
4.0 stars
ToolTip Icon for Star Rating. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score:

640

Loan Amounts:

$7.5k - $40k

APR Range:

7.99% - 29.99%

Full FreedomPlus review

Top perks

Cosigners accepted: FreedomPlus is one of very few lenders that allow a cosigner on a personal loan. When you add a cosigner (or co-borrower), you may qualify for a lower rate, larger loan size, and a longer repayment term than you could on your own. Of course, finding a cosigner who has sufficient income and a good credit score is often easier said than done, but this option makes it a clear winner for a specific group of applicants.

Special discounts: Every lender uses different criteria to determine loan eligibility. FreedomPlus is unique in that it can take your retirement savings into consideration when determining how much to lend you and at what rate. The company also offers rate discounts when borrowers use a certain percentage of the loan amount to pay down existing debt.

Low APRs: FreedomPlus loans can be obtained at APRs as low as 7.99% for qualifying borrowers who have a cosigner, have substantial retirement savings, and/or use the loan to pay off other debt.

Large loan amounts: This is both a pro and a con. FreedomPlus loans are typically sized between $7,500 and $40,000. That rules out borrowers who need just a small loan of only a few thousand dollars, but applicants who need a larger loan will likely find that its maximum fits their needs just fine.

Longer loan terms: FreedomPlus loans have repayment terms that can span up to 60 months, giving you ample time to pay off your balance and pick a monthly payment that fits within your budget.

No prepayment fees: Some lenders charge a fee for paying back a loan early, but FreedomPlus doesn’t have any prepayment fees at all. So if you want to make extra payments and pay off a three-year loan in just one year to save on interest, you can do that without paying a penalty.

Get funds in 48 hours: FreedomPlus is quick to underwrite new loans, suggesting on its website that it can make a credit decision the same day. After uploading relevant documents and signing your contract, funds can be disbursed to you in as little as 48 hours.

What could be improved

High upper-end rate: FreedomPlus personal loans have a wide range of interest rates, with 29.99% being the current highest. Although 29.99% is not the highest in the market, it is extremely high.

Potentially more expensive than other options: The only way to snag an interest rate of 7.99% is to have excellent credit (generally, near the 800 mark or better), borrow no more than $12,000, and agree to pay it back in 24 months. If that is the case, you may be better off going a different route, particularly if you're using the loan to pay off credit card debt. For example, a $12,000 loan through FreedomPlus at 7.99% will cost you just shy of $543 per month for 24 months, meaning you'll pay a total of $1,024 in interest. If you transferred your credit card debt to a 0% balance transfer card for 18 months instead, you could clear the debt by paying $666 a month ($123 more). But you will pay nothing in interest and the debt will be paid off six months faster.

Origination fees: In order to take out a FreedomPlus personal loan you may have to pay an origination fee of up to 4.99% of your loan balance. That represents an extra $499 on a $10,000 loan.

How to qualify for a FreedomPlus personal loan

Before applying, make sure you can meet the following loan qualifications:

  • Have a credit score of at least 640
  • Be able to verify your income
  • Have a verifiable bank account

Application process

The FreedomPlus personal loans application process could not be easier. You fill out an online form, wait for the FreedomPlus folks to do a "soft credit check" that won't impact your credit score, and decide if you want to proceed, based on the interest rate they quote you. If you have any questions, you can call the customer service number for clarification. Once you decide to proceed with the loan, FreedomPlus will ask you to provide proof of income, your bank account information, and personal ID. The company will then run a "hard credit check," and you will be asked to sign a loan contract before funds are disbursed.

Alternatives to consider

The decision to take out a personal loan should not be entered into lightly. For that reason, it's important to shop around before taking the plunge. Here are two of our partner lenders that you might also consider:

  • Marcus by Goldman Sachs® offers loans of $3,500 to $40,000 to borrowers with credit scores 680 or over. Best of all, this option gives you up to six years to repay the loan.
  • Avant Personal Loans are geared toward borrowers with lower credit scores, beginning as low as 580. Avant offers loans for as little as $2,000 and as much as $35,000

This personal loan is right for you if:

Some borrowers are a better fit for FreedomPlus personal loans than others. If the following statements apply to you, a FreedomPlus loan is likely a good option for your borrowing needs.

  • You need to use a cosigner. If you have imperfect credit, a cosigner who has a high credit score and annual income can help you qualify for a loan on better terms. As far as we've found, FreedomPlus is one of very few lenders who will allow you to add a cosigner to an account. Most underwrite loans based only on one person.
  • You have high-interest debt to consolidate. FreedomPlus works well as a debt consolidation loan because you can qualify for a lower rate when you use a certain percentage of the loan amount to pay off other debt.
  • You need a larger loan. FreedomPlus works best for borrowers who have larger borrowing needs due to its $7,500 minimum loan amount. If you need a smaller loan size, you may want to seek out an online personal loan from another company.
  • You have retirement savings. Borrowers who have retirement savings are in a good position to score a low personal loan rate from FreedomPlus, because it offers discounts to borrowers who have more money saved. This is a rare benefit, as most lenders don’t take retirement balances into consideration when making a loan.
  • You need more time to pay off a balance. If you need only a one-year loan to consolidate credit card debt, you might be better off with a 0% intro APR balance transfer card, which can help you pay off debt without paying any interest. However, if you need more time to pay off a balance, a low-interest personal loan is a better choice than a credit card.

No matter what you intend to do with the proceeds of your loan, take the time to choose the very best loan product for you and your specific situation. We realize that there is much to consider, but you owe it to yourself to weigh the pros and cons of each loan.

About the Author

Dana George
Dana George icon-button-linkedin-2x

Dana has been writing about personal finance for more than 20 years, specializing in loans, debt management, investments, and business. Her work has appeared on San Jose Mercury News, The Detroit News, Oakland Tribune, and Dun & Bradstreet. After moving around the globe, she's thrilled to be living in her hometown of Kansas City.

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