Updated November 01, 2017
FreedomPlus is a personal loan provider that provides funding for life events like home remodeling, debt consolidation and travel. Loan terms are available from 2 to 5 years and you can borrow $5,000 to $35,000. Freedom Plus APR ranges from 4.99% to 29.99%.
The key selling point of FreedomPlus is the convenience of same day approvals and loan funding within 48 hours - although some restrictions may apply. Because of its low credit score requirement, FreedomPlus may be ideal for people who can’t get approved for other lines of credit with more competitive rates.
Here we’re breaking down the FreedomPlus loan in detail to help you weigh it as an option. We'll even compare it to two other popular online lenders, so you can see a head-to-head comparison of the loan product against competitors.
The basic qualifications for getting approved by FreedomPlus appear on the website. At bare minimum, you must have a valid ID, be over 18 years old and a U.S. citizen.
A call placed to FreedomPlus shed some light on other qualifying criteria. At the very least you need a credit score of 700, $25,000 worth of verifiable income and no bankruptcies within the last two years.
As far as interest and loan terms, FreedomPlus determines what you qualify for based on the loan amount, your credit score, overall debt and debt-to-income ratio.
Fees and Gotchas
FreedomPlus charges an origination fee of 0.00% to 5.00% which comes out of your loan before it's deposited into your account. FreedomPlus determines how much you pay for origination after considering your credit history and income. There's no fee for early repayment of a loan, which can help you reduce the amount of interest you pay over time.
Other potential hidden fees for situations like returned or late payments are not listed publicly. But FreedomPlus told us via the phone that these conditions are covered in the final contract.
We give the FreedomPlus loan a transparency score of "A" because its fine print details and fee structures are unclear. For information regarding most of its loan conditions you must speak directly with a FreedomPlus agent.
However, pre-qualifying for a rate only requires a soft pull, which doesn’t impact your credit report or score. So you do have the option to apply for a rate and then ask for more loan information during your one-on-one appointment with a lending agent. FreedomPlus performs a phone screening with each applicant before final approval.
Pros and Cons
Now let’s dig into the pros and cons of taking out a loan with FreedomPlus:
- People with a below average credit score have a shot at getting approved.
- FreedomPlus personalizes its application process. It aims to go above and beyond just scrutinizing your credit to qualify you personally during a phone interview.
- You can get approved within a day and receive your loan within just 48 hours.
- There's no fee for prepayments.
- You can pre-qualify online to check rates with a soft pull.
- The APR range starts pretty high at 4.99%
- The FreedomPlus website is simplistic to a fault. It doesn't have a wealth of information on fine print to reference when weighing your options.
- Miscellaneous fees for situations like a failed payment aren’t available to review. We strongly advise borrowers interested in a FreedomPlus loan to go through the final loan contract with a fine-tooth comb before signing.
Freedom Plus Against Competitors
If you want a personal loan, you should make sure you shop around for the best deal. MagnifyMoney has a list of the best personal loans - which is a good place to start. The first lender on our list is SoFi, which has interest rates as low as 5.21% APR (variable with auto-pay) and 5.49% APR (fixed). You can check your rate without hurting your credit score.
Avant charges APRs ranging from 9.95% - 35.99%. Checking your Loan Options will not affect your credit score and you may get funds as soon as the next business day. Avant is available in all states except Colorado, Iowa, West Virginia, and Vermont.
Compared to both FreedomPlus and Avant, SoFi offers the lowest interest rates. In fact, SoFi's high-end APR is not to far off the lowest APR available at Freedom Plus. The highest SoFi APR is 14.24% (if you sign up for auto-pay) where the APR range for Freedom Plus begins at 8.47%. But you need to have excellent credit in order to qualify for a loan at SoFi.
Who will benefit most from a FreedomPlus Loan?
A FreedomPlus loan may be a good solution for you if you have a low credit score. Especially if you’re getting denied elsewhere and you’re in an emergency situation or you wish to consolidate debt as soon as possible.
However, FreedomPlus APR is comparable to Avant, so you should apply for both loans if your credit is less than stellar to see which one will benefit you more.
Don’t count out SoFi (or other personal loan provides that allow you to see a rate with a soft pull), because it will save you money if you have enough flexibility to build your credit before you take out a loan. Whichever loan you do decide to settle on, make sure you feel completely comfortable with the terms and hidden fees before signing off on a contract.
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