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.
|Lending Partner||Best For||Rating||Min. Credit Score||Loan Amounts||APR Range|
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Min. Credit Score:
$7.5k - $40k
7.99% - 29.99%
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.
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.
Before applying, make sure you can meet the following loan qualifications:
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.
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:
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.
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.
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