FreedomPlus Personal Loans: 2022 Review

FreedomPlus offers multiple ways to get a rate discount on its personal loans, but it doesn't offer small loans.
Feb 2, 2022

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Our Take


NerdWallet rating 

The bottom line:

FreedomPlus loans can be a good debt consolidation option for fair- or good-credit borrowers who qualify for one of the lender’s rate discounts.

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on FreedomPlus' website

Pros & Cons


  • Offers direct payment to creditors with debt consolidation loans.
  • Soft credit check with pre-qualification.
  • Joint loan option.
  • Multiple ways to get a rate discount.


  • Charges origination fee.
  • High minimum loan amount.
  • No secured or co-signed loan option.

Compare to Other Lenders

Happy Money
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NerdWallet rating 
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Loan term

2 to 5 years

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2 to 5 years

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3 to 5 years

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Full Review of FreedomPlus

FreedomPlus personal loans work particularly well for consolidating a large amount of credit card or other unsecured debt. Rates start high, but can be reduced if you qualify for one of the lender’s discounts (listed below).

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.

Unlike other online lenders, once you submit an application, a FreedomPlus loan consultant will call you to discuss the loan and complete the process.

FreedomPlus is best for borrowers who:

  • Want to consolidate large amounts of debt.

  • Qualify for one of the lender’s rate discounts.

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

  • Need the loan approved and funded quickly.

FreedomPlus at a glance


  • Charges origination fee.

  • No prepayment fee.

  • No rate discount for autopayments.

Loan flexibility

  • Lets borrowers choose and change payment dates.

  • Can fund loans in one to three days.

  • High minimum borrowing amount.

  • Loans not available in CO, CT, HI, KS, ND, NV, VT, WV, WI or WY.


  • Clearly discloses rates, fees and terms on website.

  • Website doesn’t include FAQ to answer borrower questions.

Customer experience

  • Offers multiple customer contact channels available Monday through Friday.

  • Doesn't offer financial education.

Key terms to know about personal loans

Annual percentage rate

Annual percentage rate is the interest rate on your loan plus all fees, calculated on an annual basis and expressed as a percentage. Use the APR to compare loan costs from multiple lenders.

Origination fee

An origination fee is a one-time, upfront fee that some lenders charge for processing a loan. The fee can range from 1% to 10% of the loan amount, and lenders typically deduct it from your loan proceeds.

Debt-to-income ratio

The debt-to-income ratio divides your total monthly debt payments by your gross monthly income, giving you a percentage. Lenders use DTI — along with credit history and other factors — to evaluate a borrower's financial ability to repay a loan.

Soft credit check

Lenders that offer pre-qualification typically do so using a soft credit check, which allows you to see rates and terms you qualify for without affecting your credit score. If you accept the loan offer, the lender will perform a hard check to confirm your information. Hard checks knock a few points off your credit score.

Where FreedomPlus stands out

Multiple ways to get rate discounts: FreedomPlus offers three chances to get a rate discount. These discounts can be combined, the lender says. Here’s how each discount works:

  • Joint loan discount: FreedomPlus will take up to six percentage points off your rate if you add a co-borrower to your application. The lender will consider your combined income and review the best credit profile between the two of you to decide your rate.

  • Retirement savings discount: FreedomPlus sees applicants with substantial retirement savings as financially responsible, and rewards them with a rate discount up to five percentage points. The lender says you need at least $25,000 in savings to qualify for a discount of any size and $40,000 to get the largest discount. Retirement savings are not used to secure the loan.

  • Direct pay discount: Borrowers who have FreedomPlus send funds from a debt consolidation loan directly to their other creditors could see their rate reduced by up to four percentage points. To get the full discount, borrowers must have FreedomPlus send at least 85% of the funds to creditors.

Fast funding: FreedomPlus says the majority of customers receive a loan decision the same day they apply. The lender says it can fund a loan within three days of approval, which isn’t the next-day funding option other online lenders provide, but it is faster than some lenders that take five or more days 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 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 charges fees of 1.99% to 4.99%, which are relatively low. Still, most borrowers get the full 4.99% fee, according to the company’s website.

No rate discount for autopay: Many lenders offer a small APR discount — usually 0.5 percentage points or less — 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.

High minimum loan amount: FreedomPlus loans start at $7,500, which means they’re not right for smaller expenses. Starting loan amounts between $1,000 and $2,000 are more common.

How to qualify for a FreedomPlus loan

  • Minimum credit score: 600; borrower average is 700.

  • Minimum debt-to-income ratio: 45%, excluding mortgage; borrower average is 23%.

  • Minimum income: None; borrowers have an average household income of $120,000.

  • 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 20.5% APR would have monthly payments of $486. You'd pay $4,512 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.

After you submit an application, a loan consultant will contact you if you qualify. If you don't qualify, you'll be notified by mail.

on FreedomPlus' website


NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.