FreedomPlus Personal Loans: 2021 Review

To review FreedomPlus’ personal loans, NerdWallet collected more than 40 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.

FreedomPlus personal loans can be used for almost anything. They’re particularly good for consolidating a large amount of credit card or other unsecured debt because they have high starting loan amounts and a rate discount for having the lender pay off your debts directly.

The lender offers fair-credit loans, but average borrowers have good credit (690 to 719 FICO scores) and strong household income. Loan terms on a FreedomPlus loan can be two to five years.

The annual percentage rate FreedomPlus charges is comparable with other online lenders, but the APR includes an origination fee. Borrowers may be able to reduce their rate with a direct pay discount, by adding a co-borrower or by having enough money set aside for retirement.

FreedomPlus is best for borrowers who:

• Want to consolidate large amounts of debt.

• Have stable household income and fair or good credit (630 to 719 FICO scores).

• Want to choose the payment date and have the option to change it.

FreedomPlus at a glance

» COMPARE: Personal loans for good credit

Where FreedomPlus stands out

Joint loan and direct pay discounts: FreedomPlus encourages co-borrowing with a rate discount for joint loans. The lender also offers a discount with its debt consolidation loans for having loan proceeds sent directly to pay off other creditors. FreedomPlus declined to disclose the exact amount of either discount.

Retirement assets discount: The lender gives a discount to borrowers who show financial responsibility by having $40,000 or more in a retirement fund. Borrowers don't use the account as collateral, the company says.

Fast funding: FreedomPlus says it can fund a loan within two days of approval, which isn’t the next-day funding option many other online lenders provide, but it is faster than some lenders that take up to a week to deposit the funds into your account.

Option to change your payment date: FreedomPlus says borrowers can choose their payment date before signing a loan agreement and then change the date twice in a 12-month rolling period, or six times throughout the life of the loan. This is a helpful feature if you switch jobs, for example, and start getting paid on a different date.

Where FreedomPlus falls short

Origination fee: Origination fees are common among online lenders, and FreedomPlus’ 1.99% - 4.99% fee is on the low side. Still, most borrowers get the full 4.99% fee, according to the company’s website.

High minimum loan amount: FreedomPlus loans start at $7,500, which means they’re not right for smaller expenses. A more typical starting loan amount is $2,000.

No rate discount for autopay: Many lenders offer a small APR discount — usually 0.5% — to encourage borrowers to set up automatic payments. FreedomPlus doesn’t offer the discount, but says most borrowers are automatically set up for autopay. This ensures on-time payments, which can help build credit.

How to qualify for a FreedomPlus loan

• Minimum credit score: 620; borrower average is 700. The company uses the FICO 8 credit scoring model.

• Minimum debt-to-income ratio: 45%, excluding mortgage.

• Minimum credit history: three years.

• Minimum number of accounts on credit history: two.

• No bankruptcy in the last 24 months.

Loan example: A three-year, $13,000 loan with a 23.4% APR would have monthly payments of $506. You'd pay $5,216 in total interest on that loan.

How to get a FreedomPlus loan

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us, including FreedomPlus. Pre-qualifying won't impact your credit.

Apply on FreedomPlus

On the FreedomPlus website, you can select a loan amount, enter your reason for the loan and specify your state. Additional questions follow, such as your name, email and employment status.