About FreedomPlus Personal Loans

By J.R. Duren
HighYa Staff Published on: Feb 12, 2018

FreedomPlus is a lending site who provides personal loans ranging in APR from 4.99% to 29.99%. The loans can be approved in minutes and show up in your bank account within 48 hours.

The company is one of four lending sites owned by Freedom Financial Network. The other three sites are Consolidation Plus, Freedom Debt Relief and Freedom Tax Relief.

FreedomPlus was launched in 2004 and is based in San Mateo, CA. The company's founder is Joseph Toms, who has an extensive background in lending and was most recently an exec at popular lending site Prosper.

The site claims to offer loans with low interest rates and quick processing, two crucial components if you're looking for quick money at good rates.

However, the best rates and quickest processing times are dependent on borrowers with excellent credit scores and who provide all the necessary paperwork as quickly as possible.

Is FreedomPlus the right lender for your particular situation? That's a question we want to answer in this review and to do it we'll talk about the following aspects of this company's loans:

  • How the application works
  • What the rates, fees and loan amounts are
  • How FreedomPlus compares to the competition
  • What other people are saying about using FreedomPlus

We'll finish up the review with a general overview of the site's pros and cons.

How the FreedomPlus Application Works

The FreedomPlus application is meant to be a quick process to help you get your money as soon as possible. Remember, though, that how fast your application goes has a lot to do with the type of paperwork the company needs in order to give them the fullest picture of your financial life.

We did a test run of the application. Here are the steps we encountered:

  • Select how much you want to borrow ($10K-$35K)
  • Reason for borrowing (debt consolidation, home improvement, bills, etc.)
  • Your credit score
  • State of residence
  • Employment status
  • Identify co-signer (optional)
  • Zip code
  • Address

We weren't able to get past the Address screen because it required our real address and a phone number to match.

Based on what we saw in the application, we know that FreedomPlus takes a variety of factors into account when determining your loan.

Your reason for using the loan is important because FreedomPlus wants to know if you're using the money to get rid of debt or to go on a vacation, for example. To a lender, using borrowed money to pay off debt is seen as more responsible for two reasons.

First, you're getting rid of debt instead of adding more. Second, FreedomPlus may be able to reduce your monthly payments, which means you'll have more money freed up to pay off debt and, in theory, stay out of debt.

Another important note is the co-signer section. A co-signer is someone you can add to your loan application who will become personally responsible for your loan if you don't pay. If you pay late and get negative marks on your credit report, your co-signer will get those negative marks, too.

From the borrower's perspective, a co-signer improves your chances of a getting a loan, especially if they have excellent credit (740+), low debt and a good income.

From FreedomPlus' perspective, the co-signer, assuming he or she has an excellent financial profile, is someone reliable the lender can chase down if you don't pay.

Once you submit your application, one of the company's loan consultants will call you and iron out any details that may be needed in order to qualify you for the loan.

If all goes well, you'll get approval from FreedomPlus and your money can arrive in your bank account in less than 48 hours. Remember, though, not everyone will get their money that fast. Sometimes the lender will require extra documents that will prolong the application process.

FreedomPlus Rates and Fees

One of the things that sets certain lenders apart from others is the range of rates and fees they charge their borrowers.

Here's what we know about FreedomPlus loans:

  • APR's range from 4.99% to 29.99%
  • Origination fees range from 0% to 5%
  • Repayment is two to five years

Understanding APR

APR stands for "annual percentage rate" and is a combination of two things: interest rate and fees. The company will provide you an interest rate and origination fee based on your credit history and financial stability.

Someone with a low credit score (below 650) will most likely get the highest interest rate and origination fee, resulting in an APR of 29.99%.

If you've got excellent credit scores, then you can expect to get a lower interest rate and origination fee.

"Origination fee" refers to the fee lenders charge to process your application and loan.

How to Get the Lowest APR

Most lending websites won't tell you how you can get the lowest rate. FreedomPlus does and they explain it in the fine print.

According to them, you can get the 4.99% APR if you can meet two of the following three criteria:

  1. Add a co-signer who has solid income
  2. Use at least half of your loan to pay off existing debts
  3. Provide documentation that proves you have at least $40K in a retirement account

As we mentioned, these criteria are set in place so that FreedomPlus can minimize their risk. Keep in mind that these criteria are for the best interest rate and are added on to other factors like how good your credit score is.

How FreedomPlus Compares to the Competition

FreedomPlus is one of many lenders known as non-bank lenders, which are companies that lend money and aren't associated with a bank.

Instead, they raise capital and front their own money to pay for loans that, in theory, they'll earn money on through your interest payments.

As a comparison, we'll show you how FreedomPlus rates and fees compare to what you'd get with one of the (arguably) three most-popular non-bank lenders: Prosper.

Company FreedomPlus Prosper
APR 4.99% - 29.99% 5.99% - 36%
Origination Fee 0% - 5% 0% - 4.95%
Repayment Length 2-5 Years 3-5 Years
Loan Amount $10K-$35K $2K - $35K

As you can see, FreedomPlus' rates are lower than Prosper's both on the high-end and low-end, while Prosper has the slight edge for the lower high-end origination fee.

The two lenders' minimum loan amounts also add an interesting factor. If you need a loan below $10,000, FreedomPlus isn't the right choice.

soincome and have a solid income and the means to pay off your $10K+ loan in two years and thus avoid extra interest payments, then FreedomPlus is the better choice because Prosper's minimum repayment period is three years instead of two.

Public Opinion About FreedomPlus

The consumer reviews we read about this company were largely positive. Many consumers said they were pleased with how easy the process was and with the rates and/or monthly payments they received.

The majority of the negative reviews we read addressed denials, something that is, based on our research, a common refrain among negative reviews about lenders.

Several consumers said that when they pressed FreedomPlus about why they were rejected, they were given hard-to-believe explanations.

Our Final Thoughts About FreedomPlus: Pros and Cons

We believe that FreedomPlus' greatest strength is that consumers with excellent credit (740+) who can meet the company's requirements can get themselves a 4.99% APR.

There are few loan companies we've reviewed that offer clear rules for getting the lowest APR; it's usually a solely dependent on credit scores, income and other factors that don't include a co-signer.

Another advantage of the site is what we pointed out earlier when we compared it to Prosper: two-year repayment terms. This advantage functions best for borrowers who have high monthly income and can afford to pay more every month in order to pay off their loan quicker.

The downside to FreedomPlus is that, if you have a bad credit score (650 or lower) and are approved for a loan, you'll most likely get the highest APR possible: 29.99%. An interest rate of that type is what you'd expect to pay via a credit card's penalty APR; it's not a normal rate and will cost you a lot of money in interest over the life of the loan.

Is FreedomPlus the right choice for your situation? The answer to that question depends on what type of situation you're in.

If you want to use the loan to pay off your existing debt, it will only benefit you if you get a lower APR than what you've got on your existing account. And to get that lower APR then you'll need better credit scores than what you had when you signed up for the debt you want to pay off.

Another tip is to do a review of your budget. In which areas are you spending too much? Cutting back on your spending frees up extra money you can use to pay down your debt.

Read through our article about using a budget to pay off your credit card debt. It gives you actionable steps and mentalities you can use to pay down your debt as fast as possible.

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