As its name implies, FreedomPlus offers personal loans with plenty of flexibility. Their loan amounts and rates can suit a variety of purposes and there are also few restrictions on how to use the funds once you receive them. On top of that, there are multiple ways you can qualify for an APR discount even beyond a perfect credit score.
Ready to learn more about FreedomPlus personal loans? Keep reading and you’ll find out everything from what kind of loan you can get to how to apply and qualify.
Personal Loans Through FreedomPlus
Getting a personal loan from FreedomPlus offers quite a bit of flexibility in your financing options. Loan amounts start off at $10,000 and go up to $35,000. There’s also a wide range in rates, costing you anywhere from 4.99% to 29.99% APR depending on your application information.
You may be charged an origination fee up to 5.0% of the loan amount. That means if you take out a $20,000 loan, you could have as much as $1,000 deducted before you receive your funds. Interest rates are fixed and your payments will be spread out over two to five years.
What can you use your FreedomPlus loan for?
The options are countless, including debt consolidation, home improvement, medical expenses, weddings, and other major purchases.
In order to qualify for a personal loan from FreedomPlus, you’ll need at least a 640 minimum credit score. Most borrowers, however, have an average score of 720 so it’s likely you’ll need to be in the “good” range when it comes to credit.
You’ll also need to meet some other requirements besides having decent credit.
For starters, your annual income must be at least $30,000 and needs to be verified during the application process. Applicants need to provide a valid ID and a bank account as well. FreedomPlus also looks at your debt to income ratio, which should be under 40%. Most current borrowers have a DTI under 20%.
While you can use FreedomPlus loans for a variety of purposes, most people use them to consolidate debt and take advantage of a better interest rate compared to their credit cards.
The FreedomPlus loan application process is a fast and simple one. It starts off by asking how much you want to borrow. From there, you’ll answer more questions about yourself. You’ll also be required to speak with a loan consultant over the phone. This helps them look beyond your credit score to analyze your loan application.
Once you’ve gone through those steps, you can often receive a same-day decision; in fact, usually within two to three hours. If approved, you can upload all of your documents online and even sign your contract with an e-signature.
From start to finish, it’s an easy process, especially if you take a few minutes ahead of time to gather things like your recent pay stubs for income verification.
Once You’re Approved
Things move quickly once you’re approved for a FreedomPlus personal loan. You can usually receive your funds within 48 hours of signing your loan contract. Remember that any origination fee will be deducted from the amount before it hits your bank account. You’ll have fixed monthly payments, so as long as you stay on top of them, your amount remains the same.
If you do happen to make a late payment after a 10-day grace period, you’ll be charged the higher of $15 or 5% of your amount due. Paying with a check can also be costly, carrying a $15 fee each time. If the check is ever returned, you’ll be charged another $15 by FreedomPlus. On the plus side, in case you ever want to pay off your FreedomPlus loan early, you can do so with no prepayment fees.
One of the qualities that makes FreedomPlus really stand out is the ability to lower your APR in a number of different ways. The first is by using a co-signer. Not only is it ok to have one on your FreedomPlus loan, you could actually see as much as a 5% drop in APR just by adding a co-signer.
Another interesting discount opportunity is with direct pay debt consolidation. If you opt for this method of debt consolidation, FreedomPlus will pay your creditors directly and at the same time offer you a lower interest rate. Your loan will cost you even less while even removing the burden of taking the extra step to pay off your debts by yourself.
For borrowers with substantial retirement savings, you could also receive an APR reduction. This can range anywhere between one and three points. There are few lenders who view your retirement savings as an asset in this way, so it’s definitely worth looking into. You’ll typically need at least $40,000 in order to qualify for this discount.
FreedomPlus is an offshoot of Freedom Financial Network, a California-based debt consolidation company with financial backing from Vulcan Ventures. After starting a small lending practice with its debt consolidation customers, the company decided to completely branch out and start working with personal loan borrowers in the near-prime credit segment. The company has grown substantially over the last several years and now offers loans beyond just debt consolidation.
Is a FreedomPlus personal loan right for you?
There are a lot of perks that come along with getting your loan through FreedomPlus. While it’s always smart to shop around for the best interest rates and loan terms, you can also use these questions to help guide you through the selection process.
Do you want to use the loan funds to consolidate your debt?
Debt consolidation is one of the most popular uses for loans from FreedomPlus, and it’s not surprising why. Many types of debt, especially credit cards, come with high interest rates. Getting a personal loan can help lower your interest rate and also put a fixed timeline on your payment period, rather than struggling with ongoing minimum payments.
Don’t forget to consider other low-interest debt consolidation options. If you have equity in your home, for example, you may want to consider a cash-out refinance or HELOC — if it makes sense for you. Always explore all of your options before committing to one.
A pro for choosing FreedomPlus is that you can get that APR discount for debt consolidation loans, as long as you let FreedomPlus directly pay off your accounts. Before selecting your loan terms, talk to a loan consultant to see how much of a discount you could be eligible for.
What kind of credit score do you have?
While FreedomPlus doesn’t necessarily cater to borrowers with excellent credit, you probably won’t get approved with bad credit. The absolute cutoff may be 640, but the reality is that most customers fall somewhere closer to a 720 FICO score. While paying off debt can help repair your credit score and lower your debt to income ratio, it won’t help if you need to get the loan first.
Before you start your FreedomPlus application, carefully review the borrower requirements to ensure you meet the minimums. Remember, there are also income and debt to income requirements to consider.
If you don’t meet the qualifications yet, you can always work in improving your credit score and coming back at another time. Should you need funds now and don’t quite have the score for FreedomPlus, you can always consolidate at a later time as well, once you’ve worked on paying off debt and raising your score.