FreedomPlus Personal Loans Review
FreedomPlus takes a personalized approach to online lending by requiring each borrower to meet with a loan consultant via phone. Paired with competitive rates, this makes FreedomPlus personal loans an attractive option in an otherwise digitally driven loan marketplace.
What we like:
Human engagement during application
|Rates (APR)||4.99% – 29.99%|
|Loan Terms||2 – 5 years|
|Loan Amounts||$7,000 – $35,000|
|Fees||Origination fee: 0% – 5%|
Prepayment penalty: None
Late fee: $15 or 5% of amount due, whichever is greater
The online lending market is booming right now, and more and more consumers are choosing to find and apply for a personal loan without ever stepping foot into a bank or credit union. Though there are numerous online personal loan lenders available, FreedomPlus continues to remain a competitive option for both prime and subprime borrowers.
Founded in 2013, FreedomPlus is part of the Freedom Financial Network, an organization that aims to provide “comprehensive consumer advocacy services” through each of its companies, including Bills.com, Consolidation Plus, and Freedom Debt Relief.
A quick visit to the site shows a commitment to that consumer advocacy, as FreedomPlus promises to make smarter decisions that support the unique needs of each borrower. In addition, the company is one of the few online lenders that require borrowers to speak with a loan consultant prior to approval.
In a world driven by algorithms, is a FreedomPlus personal loan right for you?
In this review:
- Applying for a FreedomPlus Personal Loan
- FreedomPlus Loan Rates, Terms, and Limits
- Benefits of a FreedomPlus Personal Loan
- Downsides of a FreedomPlus Personal Loan
Applying for a FreedomPlus Personal Loan
The FreedomPlus loan application process can be broken down into the following steps or phases.
Step 1: Applying
Like many of today’s online lenders, the FreedomPlus personal loan process starts with a quick and easy application at FreedomPlus.com. Applicants will be required to provide the following information:
- Desired loan amount
- Loan purpose (e.g., home improvements, debt consolidation, vacation, etc.)
- Estimated credit score (e.g., excellent, good, poor, etc.)
- State in which they live
- Employment status and income
- Contact information
- Social Security number
Upon application completion, a screen will appear notifying the applicant if they have been pre-qualified for a loan and, if so, the approximate loan amount.
Step 2: Loan Consultation
Each applicant is required to speak with a loan consultant before finalizing the loan. Typically, a loan consultant will reach out to the applicant within a few hours or days to complete an application review. However, applicants are invited to contact FreedomPlus immediately if they don’t want to wait.
During the consultation, the FreedomPlus representative will ask a series of questions that help to determine the best loan terms for the applicant’s individual circumstances. Borrowers who meet one or more of the following criteria may be eligible for a lower rate.
- Willing to add a co-borrower to the loan
- Currently has retirement savings
- Willing to opt for direct payment if all or part of the requested amount will go towards paying other creditors
Step 3: Loan Approval & Funding
Assuming the applicant wants to proceed with their loan offer, they will need to provide a valid ID, proof of income, and proof of a checking account. After all the required information is collected, they can sign the loan agreement.
Following lender approval, loans are typically funded within 48 hours, though some borrowers may have access to loan proceeds as soon as the same business day.
FreedomPlus Loan Rates, Terms, and Limits
Though rates, terms, and limits vary from applicant to applicant and may change, FreedomPlus borrows can typically expect the following applicable fees:
- A range of APRs (annual percentage rates) from 5.99% to 29.99%
- Repayment terms from 12 to 60 months
- Loan amounts between $7,500 and $40,000 (limits based on creditworthiness; borrowers cannot take out loans exceeding 35 percent of their income)
- Loan origination fees between 0% and 5%
- Late fees vary by state
To qualify for a personal loan with FreedomPlus, borrowers must have a FICO score above 620 or have a cosigner who meets that criteria. Applicants with higher credit scores have a better chance of qualifying for the lowest rates.
Further, they must be at least 18 years of age, have a valid ID and checking account, and be able to provide proof of income.
As mentioned above, some borrowers with good credit will be eligible for better rate terms when they meet certain criteria. Some borrowers might also be able to secure a lower origination fee.
Securing Better Rates
If you aren’t happy with your quoted rate and haven’t had much luck securing a better rate elsewhere, then you may want to take the time to improve your credit score before reapplying. Though every lender uses different approval criteria, most of them, FreedomPlus included, rely on credit scores as a primary indicator of creditworthiness.
The following actions can help you improve your score and access more affordable loans:
- Pay your bills on time, every time
- Keep credit usage (e.g. credit card balances) low
- Limit the total amount of hard credit inquiries
- Increase your available credit by opening a new credit card
- Regularly review a copy of your credit report to spot problem accounts or errors
Benefits of a FreedomPlus Personal Loan
Surprisingly, for some borrowers, the most beneficial aspect of a FreedomPlus personal loan is the required loan consultation. During the consultation, some borrowers may find they are qualified for lower rates based on certain eligibility criteria, like the presence of a retirement account or the decision to send funds directly to creditors when the loan is being used to pay down debt.
Further, FreedomPlus moves past basic algorithmic loan decisions and gives some borrowers, particularly those who barely or loosely meet eligibility requirements, the opportunity to further explore their options instead of receiving an outright denial.
Borrowers with excellent credit may find that FreedomPlus offers highly competitive loans, particularly when compared to other top lenders such as Citizens Bank (as low as 7.98%) and LendingClub (as low as 6.95%).
Downsides of a FreedomPlus Personal Loan
While the FreedomPlus loan consultation may be a boon to some borrowers, others may find the requirement to be a burdensome hurdle that can slow the loan process and delay funding. This may be the case for prime borrowers who can quickly and easily access similar rates and terms with a competitor like SoFi or Best Egg.
Another potential downside, at least when it comes to rates, is the significant gap between the lowest and highest rates available. Though some highly qualified borrowers may secure that 5.99% rate, others may have to settle for loan rates as high as 29.99%, which could drastically increase their monthly payments.
Plus, many borrowers will also have to pay an origination fee, with some incurring fees as high as 5% of the total loan amount.
Finally, the FreedomPlus website, though clean and easy to navigate, lacks the transparency that some borrowers offer. Rates and terms aren’t publicly listed, there is no FAQ section, and it lacks the loan resources and tools that some other lenders, like SoFi and Citizens Bank, offer.
>> Read More: Best personal loans
It’s worth noting that FreedomPlus loan representatives are typically well informed and are happy to answer most questions and offer transparent information about rates, terms, and eligibility, but for borrowers who want the answers at the fingertips — preferably without human interaction — FreedomPlus may disappoint.
FreedomPlus takes a unique approach to lending by incorporating a loan consultation requirement into its loan application process. This can help some borrowers secure better rates than they would otherwise, and highly qualified borrowers may even receive rates as low as 5.99%.
However, with rates as high as 29.99%, this loan product may be expensive for those with poor credit. Additionally, borrowers who would prefer to apply for a loan without speaking to a representative may not appreciate the FreedomPlus personal loan process.4.24 FreedomPlus Personal Loans
Author: Jennifer Lobb
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