FreedomPlus personal loan review

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In a Nutshell

For qualifying applicants, each FreedomPlus personal loan application is reviewed by a human, which the lender says could help ensure that its loans meet its customers’ needs. Unfortunately, loans from FreedomPlus may come with origination fees, and there’s a high minimum loan amount compared with some other lenders.

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Pros Cons
Competitive starting APRs High minimum loan amount
Can directly pay off the debt you’re consolidating Origination fees up to nearly 5%
Allows co-borrowers Must talk to a loan representative via phone to complete the application process
Help from loan consultants No instant decision of application status

What you need to know about a FreedomPlus personal loan

FreedomPlus is an online lender that’s affiliated with Freedom Financial Network, which provides services through its, Freedom Debt Relief and Consolidation Plus products. The company says many people use its personal loans for debt consolidation, but other popular uses include home improvements, weddings, vacations and other major purchases.

Here are five things to know about a personal loan from FreedomPlus.

1. Every application is reviewed by a human

If you qualify, FreedomPlus has a loan consultant contact you on the phone to discuss your loan options. So if you’d like a more hands-on experience, this could be a welcome call. A phone call can also be beneficial because FreedomPlus says a representative will check if you qualify for any rate discounts and verify your application information. Just remember, whether you’re approved for a loan will depend on a number of factors that include your personal financial history and credit reports.

2. Pay off your lenders directly

If you’re approved for a loan and want to use the funds to consolidate high-interest debt like credit cards, FreedomPlus gives you the option to pay off those debts directly. And if you use 85% or more of your loan funds to consolidate debt with direct payments, you may qualify for a lower interest rate, according to information detailed on the FreedomPlus website as of May 2020.

Is it a good idea to take out a loan to pay off credit card debt?

3. High minimum loan amounts

If you want to take out a personal loan with FreedomPlus, the amount you can borrow typically ranges from $7,500 to $40,000 when you apply directly through the site (amount minimums can depend on what state you live in). That $7,500 is a pretty steep minimum for personal loans when compared with some other lenders.

4. Origination and late fees

If you’re approved for a personal loan with FreedomPlus, you may have to pay an origination fee, which can be as high as almost 5%. This fee varies based on interest rate and loan term, so it may not be included with every loan offered.

If you make a late monthly payment, you’ll also have to pay either $15 or 5% of the missed payment (whichever is greater) as a late payment fee, according to a FreedomPlus customer service representative as of May 2020.

5. Minimum and maximum loan requirements

To qualify for a FreedomPlus personal loan, you must meet several financial requirements, according to Michael Micheletti, head of corporate communications and public relations for Freedom Financial Network.

  • An annual gross income of at least $21,500
  • A maximum debt-to-income ratio of 45%
  • A minimum FICO score of 620
  • A minimum of three years of credit history

A closer look at FreedomPlus personal loans

Here are some more details to consider before deciding if a FreedomPlus personal loan is right for you.

  • No prepayment fee: FreedomPlus doesn’t charge a prepayment penalty for paying off your loan early, which can help you pay less in interest.
  • Allows co-borrowers: Adding a co-borrower to your FreedomPlus loan application might help you get approved with better rates or for a higher amount.
  • Competitive APRs: FreedomPlus offers competitive starting annual percentage rates, or APRs, which are determined based on your credit and other factors. So it’s always a good idea to compare loan rates before you commit to applying with any one lender.
  • No instant decision: There’s no option for a decision within minutes — although a same-day decision is still possible.
  • Loan terms: FreedomPlus offers loan terms from two to five years. Other lenders may offer longer repayment terms.
  • Not available in all states: According to Micheletti, loans aren’t available in Colorado, Connecticut, Hawaii, Iowa, Kansas, Maine, New Hampshire, North Dakota, New York, Oregon, Rhode Island, Vermont, West Virginia, Wisconsin or Wyoming. Some states may have limited loan amounts. For instance, loans in Arizona must be at least $10,500.

Who a FreedomPlus loan is good for

A FreedomPlus personal loan may be a good fit for you if you prefer having contact with a representative rather than handling the entire process online. Speaking with a loan consultant on the phone gives you a chance to let the lender know why you need the loan, and helps you to better understand your options.

Since FreedomPlus offers competitive starting APRs and debt-consolidation loans with direct payments, it can be a good option if you want to pay down high-interest debt. The option to add a co-borrower may allow you to secure an even lower interest rate than you’d qualify for on your own.

Just keep in mind that qualifying for the lowest APR with FreedomPlus has a number of requirements.

  • Excellent credit
  • Loan amount of less than $12,000
  • Loan term of 24 months

Adding a co-borrower with sufficient income, using at least 85% of loan proceeds to pay off debt directly or showing proof of sufficient retirement savings could also help you qualify for the lowest available interest rate with FreedomPlus.

How to apply with FreedomPlus

You can start your FreedomPlus application online or by calling a loan consultant. Once you’ve entered the requested information, you’ll typically need to talk to a loan consultant on the phone to complete the application process.

In some instances, FreedomPlus won’t give you any loan offers and will refer you to its partner, Lendvious, to see if you qualify with another lender.

If FreedomPlus has potential offers for you, the company will decide whether to approve your loan application. This can happen on the same business day as long as you apply early enough during normal operating hours. If you’re approved, you’ll have to upload documents and sign the loan contract before you receive your funds. This can happens within 48 hours.

To apply for a FreedomPlus loan, you’ll need to have the following information ready:

  • Requested loan amount
  • How you plan to use the loan
  • Your employment status
  • Your annual income
  • Your co-borrower’s income (if applicable)
  • Your address
  • Your birthdate
  • A valid ID
  • Verified bank account information

Not sure if a FreedomPlus personal loan is right for you? Consider these alternatives.

  • Discover personal loan: Discover offers personal loans with no loan origination fees and direct payments for debt consolidation. Read our Discover personal loan review to learn more.
  • LightStream personal loan: LightStream Rate Beat program offers to beat competitors’ interest rates by a small percentage if you want an even more competitive rate. Read our review of Lightstream personal loans to learn more.

About the author: Lance Cothern is a freelance writer specializing in personal finance. His work has appeared on Business Insider, USA and his website, Mone… Read more.