Editorial Review

FreedomPlus Personal Loans: 2019 Review

A good option for borrowers with good to excellent credit who want to consolidate debt.

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Our Take

4.0

NerdWallet rating 

The Bottom Line: Best for debt consolidation, with low starting rates and direct payment to creditors.

FreedomPlus

on FreedomPlus's website

on FreedomPlus's website

Min. Credit Score

640

Est. APR

5.99-29.99%

Loan Amount

$7,500-$40,000

Pros & Cons

Pros
  • Low starting rates.

  • Co-sign option.

  • Directly pays creditors for debt consolidation loans.

Cons
  • May charge origination fee.

  • Minimum loan amount of $7,500.

Compare to Other Lenders

FreedomPlus
Payoff
BestEgg
Est. APR

5.99-29.99%

Est. APR

5.99-24.99%

Est. APR

5.99-29.99%

Loan Term

2 to 5 years

Loan Term

2 to 5 years

Loan Term

3 to 5 years

Loan Amount

$7,500-$40,000

Loan Amount

$5,000-$35,000

Loan Amount

$2,000-$35,000

Min. Credit Score

640

Min. Credit Score

640

Min. Credit Score

640

Compare estimated rates from multiple lenders

Compare Rates

Full Review

To review FreedomPlus, NerdWallet collected more than 30 data points from the lender, interviewed company executives 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.

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 for a loan 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.

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.

How to qualify:

  • Minimum credit score of 640. Borrowers' average is 700.

  • At least $40,000 in annual income.

  • Debt-to-income ratio: Less than 40%. Average borrowers have a DTI of 20%.

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.

Before you shop for a personal loan

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to pre-qualify on NerdWallet. You may receive personalized rates from multiple lenders that partner with us, including FreedomPlus. Pre-qualifying will not impact your credit.

How to apply with FreedomPlus

On the FreedomPlus website, you start by using a slider bar to select a loan amount. 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.

on FreedomPlus's website

Personal Loans Rating Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to 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.