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FreedomPlus Personal Loans: 2018 Review

January 23, 2018
Loans, Personal Loans, Personal Loans Reviews
At NerdWallet, we adhere to strict standards of editorial integrity to help you make decisions with confidence. Some of the products we feature are from our partners. Here’s how we make money.
We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Here’s how we make money.

4.5 stars out of 5

NerdWallet rating: 4.5 / 5.0
Good for: Good credit, debt consolidation, co-signers

FreedomPlus is an online lender with an old-school, personalized touch: When you apply for a personal loan, you’ll have a 15- to 20-minute phone call with a company representative. This is a chance to discuss your debt situation and provide information that could lower your interest rate on a loan, such as having a co-signer or a retirement account.

“This sort of hands-on touch is clearly different from other lenders,” says Joseph Toms, president and chief investment officer at FreedomPlus.

FreedomPlus personal loans at a glance

Loan amounts$10,000 - $35,000
Typical APR4.99% - 29.99%
Origination fee0.0% - 5.0%
Time to fundingAs soon as 48 hours
RepaymentsFixed monthly payments over two to five years
Soft credit check?Yes
How to qualify
  • Minimum credit score of 640. Average borrowers have a 720 credit score.
  • At least $30,000 in annual income.
Best forBorrowers with good personal credit and a co-signer, and for consolidating debt.
Click "Check Rates" to apply on FreedomPlus.

» MORE: Best loans for debt consolidation

Detailed FreedomPlus personal loan review

To review FreedomPlus, NerdWallet collected more than 30 data points from the lender, interviewed company executives, completed the online loan application process with sample data, and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.

FreedomPlus provides personal loans between $10,000 to $35,000, with typical annual percentage rates, or APRs, ranging from 4.99% to 29.99% (this includes a one-time origination fee between 0.0% and 5.0%). The lender does a soft credit check, so your credit score will not be affected by applying.

A typical borrower, according to Toms, is in his or her mid-40s, with good credit, looking to consolidate credit card debt into a single fixed-rate loan.

Best for: FreedomPlus personal loans were recognized among NerdWallet’s 2018 Best-Of Awards under the categories of best personal loans for good credit and best for debt consolidation.

Loan example: For a borrower with good credit, a $20,000 personal loan with a repayment term of 48 months at 14.56% APR would carry monthly payments of $552, according to NerdWallet’s personal loan calculator.

There are no prepayment fees, so you won’t be penalized for repaying your loan early. The lender charges a late fee of $15 or 5% of the amount due, whichever is greater, after a 10-day grace period. There’s also a $15 fee for personal check processing and a $15 fee for unsuccessful payments.

There are a few options for getting discounts on your interest rate:

Co-sign discount: FreedomPlus encourages co-signers, and it rewards borrowers who have one by lowering the interest rate. For example, if you initially qualify for a loan at a 15.99% annual percentage rate, adding a co-signer might reduce that rate to 10.99%, Toms says.

Direct pay discount: For borrowers who want to consolidate debt, the company offers an option to send the money you borrow directly to creditors, a feature that few other online lenders offer. You don’t have to use this direct payment option, but doing so may improve your chances of successfully paying down debt and could reduce your interest rate by one to three percentage points.

By comparison, Discover offers a direct payment option for its debt consolidation loans but doesn’t reduce the interest rate for borrowers who choose to use it.

Retirement assets discount: FreedomPlus rewards applicants who are responsible about planning for retirement. Lenders don’t usually consider retirement assets as a factor when approving loans, “but we believe in planning, and we will reward borrowers [who have retirement asset plans] with a lower rate,” Toms says. For example, if you have retirement assets of roughly $40,000 or more, your rate could drop by two to four percentage points.

How to apply for a loan

On the FreedomPlus website, you start by using a slider bar to select a loan amount between $10,000 and $35,000. You then enter your reason for the loan, your credit score range and your state, and click “Get My Loan.” Additional questions such as your name, email and employment status follow.

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to see estimated rates from multiple lenders on NerdWallet.


Before you shop for a personal loan

Updated Jan. 23, 2018. 

Personal Loans Ratings Methodology

NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including: soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36%, and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. We only review lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.

5 stars out of 5 — Among the very best for consumer-friendly features

4.5 stars out of 5 — Excellent; offers most consumer-friendly features

4 stars out of 5 — Very good; offers many consumer-friendly features

3.5 stars out of 5 — Good; may not offer something important to you

3 stars out of 5 — Fair; missing important consumer-friendly features

2.5 stars out of 5 — Poor; proceed with great caution

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