Good for: Good credit, debt consolidation, co-signers
FreedomPlus is an online lender that provides personal loans up to $40,000 for a variety of purposes, including consolidating debt, home improvements and major purchases.
FreedomPlus could be a good fit if:
- You have a good credit score: While the company requires a minimum credit score of 640, its average borrower’s score is 720.
- You want to consolidate debt: Rates start at 4.99%, and it offers direct payment to creditors, which can reduce your interest rate.
- You have a co-signer: FreedomPlus encourages co-signers, which can improve your chances of qualifying and lower your interest rate.
FreedomPlus loan rates and terms
|Loan amounts||$7,500 - $40,000|
|Typical APR||4.99% - 29.99%|
|Fees||Origination fee: 0.0% - 5.0%
Late fee: $15 or 5% of amount due, whichever is greater
Unsuccessful payment fee: $15
Prepayment fee: None
|Time to funding||As soon as 48 hours|
|Repayments||Monthly over two to five years|
|Soft credit check?||Yes|
|How to qualify||
|Best for||Borrowers with good personal credit and a co-signer, and for consolidating debt|
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 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.
The typical FreedomPlus borrower is in his or her mid-40s with good credit and looking to consolidate credit card debt into a single, fixed-rate loan, says Joseph Toms, president and chief investment officer at FreedomPlus.
There are a few options for getting discounts on your interest rate, and the discounts can be combined to save you more on interest.
Co-sign discount: FreedomPlus encourages co-signers, which could help lower your annual percentage rate. For example, if you initially qualify for a loan at a 15.99% APR, adding a co-signer might reduce that rate to 10.99%, Toms says.
Direct pay discount: For borrowers looking to consolidate debt, FreedomPlus offers an option to send the money you borrow directly to creditors, a feature that few other online lenders offer. This can improve your chances of successfully paying down the debt and could reduce your APR by one to three percentage points.
Retirement assets discount: FreedomPlus rewards borrowers with retirement assets of $40,000 or more with a lower rate on a loan. Your rate could drop by two to four percentage points, according to Toms.
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.
How FreedomPlus compares
Discover offers personal loans between $2,500 to $35,000. It also offers a direct payment option for its debt consolidation loans, but doesn’t reduce the interest rate for borrowers who choose to use it.
Wells Fargo offers higher loan amounts, between $3,000 to $100,000. It doesn’t provide a discount for retirement assets like FreedomPlus does, but it does offer a lower-rate secured loan option those with savings or CD accounts.
How to apply for a loan through FreedomPlus
On the FreedomPlus website, you start by using a slider bar to select a loan amount between $7,500 and $40,000. 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.
Borrowers are assigned a loan consultant if any help is needed during the application process. The loan consultant also determines if borrowers are eligible for interest rate discounts, such as having a co-signer or a retirement account. They can be reached via phone or e-mail.
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:
- Learn how personal loans work
- 4 steps to pre-qualify for a personal loan
- Read more personal loan reviews
— Among the very best for consumer-friendly features
— Excellent; offers most consumer-friendly features
— Very good; offers many consumer-friendly features
— Good; may not offer something important to you
— Fair; missing important consumer-friendly features
— Poor; proceed with great caution