FreedomPlus Tailors Loans to Fit a Consumer's Unique Needs
What is FreedomPlus?
FreedomPlus is a leading online lender specializing in unsecured personal loans. FreedomPlus is one of the FinTech companies that has changed the personal loan marketplace that once belonged to banks and credit unions.
FinTech lenders like FreedomPlus have applied online technology and resources to open up the personal loan market, reaching a broader class of borrowers. This has helped the overall personal loan market grow and made it easier for you to shop for a loan and compare the different personal loan companies.
BIlls.com takes a look at FreedomPlus personal loans and their unique underwriting system that takes into account factors that traditional personal loan lenders ignore. This allows FreedomPlus to offer loans at reasonable rates to borrowers who can't qualify for loans elsewhere.
Since its founding in 2014, FreedomPlus has originated more than $1.5 billion in loans. FreedomPlus makes an effort to look beyond a traditional credit score as the determinant of whether or not to approve a borrower. Its lending criteria give it the flexibility to serve borrowers with FICO scores above 600.
FreedomPlus’s website easy to use, and the application process is simple. FreedomPlus loans can be approved in as little as one day, from the time of application, and funds may be available to borrowers as soon as one day later.
Not only is the FreedomPlus process easy, it provides you with a transparent loan application process. There are no hidden fees, no prepayment fees, and the loans are fixed-rate loans, with rates guaranteed never to increase and a monthly payment that remains the same throughout the life if your loan.
A unique feature of a FreedomPlus loan is that you start the application process online, but if you are a qualified applicant you will speak with a FreedomPlusloan consultant to finish your application. The requirement that you consult with a loan expert gives you a personal touch. It provides confidence that you are dealing with more than an online company that is so automated in its systems that it views you as a combination of personal identification information and a financial balance sheet made up of credit score, income, debts, and assets.
FreedomPlus loan officers will answer your specific questions and concerns, and confidently guide you through the application process. FreedomPlus loan consultants are based in the USA; you won’t be connected with an overseas call center.
FreedomPlus loans serve a variety of borrowers' needs. A primary reason borrowers turn to FreedomPlus is for a debt consolidation loan that consolidates high-interest debt from multiple creditors into a fixed-rate loan with one affordable monthly payment. If you are carrying high interest debt, it makes sense to see if you can save money by paying back your debt at a lower overall cost.
Other common reasons borrowers also take out loans from FreedomPlus include financing:
- A home improvement
- A major purchase
- Medical expenses
- A wedding
FreedomPlus offers loans from $7,500 to $40,000. You can choose a loan repayment term ranging from two years to five years (24 to 60 months). As is the case with most unsecured loans, you will be offered a better rate if you choose a shorter repayment term, but never take a higher payment than you can comfortably afford, even if you qualify for it.
As of December 2018, FreedomPlus loans are available if you are a resident of any of the following 36 states or Washington D.C. The full list is alphabetized here and in the table below:
Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, and Washington D.C.
All FreedomPlus are transparent; FreedomPlus doesn’t charge any hidden fees. There are no fees for prepayment on the loan. FreedomPlus does charge an origination fee that ranges between 0%-5% of the loan amount. All fees are clearly visible on your paperwork and accounted for in the APR that comes with your loan.
FreedomPlus Loan Benefits
FreedomPlus offers consumers unsecured loans at competitive rates.
FreedomPlus can be a good fit for you if you are a borrower with a prime credit scores, as well as if you are a borrower whose credit score has prevented you them from qualifying for unsecured loans from a banks or credit union. Consumers with less than excellent credit often are shut out by lenders and aren’t able to find reasonable rates and repayment terms.
The main benefits of FreedomPlus loans are:
- Unique discounts are available.
- Unsecured personal loans available to borrowers who can't qualify with banks or credit unions.
- A simple, secure, and private application process.
- Lower interest rates than most other credit alternatives.
- Keeping payments down through reasonable installment plans.
FreedomPlus accepts borrowers with credit scores as low as 600, and can also serve the prime borrower with scores over 700. The lowest rates that FreedomPlus offers are reserved for borrowers that have good credit and a loan application that highlights financial responsibility. But credit score is not the only factor that is weighed, as demonstrated by the discounts they offer.
FreedomPlus offers three discounts that reduce the costs of your loan if you are able to take advantage of them. These unique discounts are:
- Direct pay discount: For borrowers looking to consolidate debt, FreedomPlus offers an option to send the money you borrow directly to creditors, a feature that few other online lenders offer. This guarantees that your creditors are paid directly, eliminating the chance that you use the funds for some other purpose and then end up with the loan payment and the old debt. This can improve your chances of staying out of debt, though it is up to you to not run up new debt on the cards that are paid off.
- Asset discount- You can receive a lower interest rate if you have retirement assets of more than $40,000.
- Co-signer discount- If your loan application has a co-applicant, you could qualify for a co-borrower discount.
When you apply for a FreedomPlus loan there are two parts of the process. When you go online or speak with a loan consultant for a pre-qualification quote, FreedomPlus uses a soft pull of your credit report. This has no effect on your credit score.
If you submit a full application, then a hard pull is done on your credit report, which can result in a small hit to your score.
FreedomPlus reports your payments to the credit bureaus. Timely payment on your loan has a positive effect on your credit. Your credit score will also benefit if the following apply:
Your installment loan adds to the types of credit that show on your report. About 10% of your credit score is based on the mix of credit accounts that appear on your report. Adding an installment loan to the mix will boost your score, if you don’t have one.
You consolidate debt and reduce your credit utilization. About 30% of your score is based on the amount of credit you are granted and the percentage of it that you are using. If you are maxing out your credit cards and pay them off with a debt consolidation loan, you should see your score rise markedly (as long as you don’t run up debt again on your credit cards).
Debt Consolidation Loans
The number one reason that borrowers take out loans with FreedomPlus, according to the information they provide is to consolidate debt. Many Americans are carrying a lot of high interest credit card debt and are looking for a way out. A debt consolidation loan can be an excellent option, if you qualify for a loan that puts all of your current debt into a new loan, with one monthly payment, at a lower interest rate.
FreedomPlus Loan Facts
This chart contains some of the specific loan requirements and features of the Freedom Plus loans
|Minimum Credit Score||600|
|Maximum debt to income ratio||45%|
|Minimum credit history||3 years|
|Cosigner option (joint application)||Yes|
|Minimum gross income||$21,500|
|Preapproval quote check||Yes, with soft pull (no effect on credit score)|
|Minimum loan amount||$7,500|
|Maximum loan amount||$40,000|
|Minimum loan period||2 years|
|Maximum Loan Period||5 years|
|State restrictions||Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, and Washington D.C.|
Before you choose to work with any lender, it is important that you do your research. Read reviews from more than one website. Good sources of information about FreedomPlus include the Better Business Bureau, where they have an A+ rating, Trust Pilot and bestcompany.com.
FreedomPlus is a great choice for borrowers seeking an unsecured personal loan. They have a streamlined online application process, a short time for a loan approval decision, and you can get the funded loan funds deposited into your account as soon as in one or two business days.
FreedomPlus’s transparent process makes it easy for you to easily understand the rates and fees that come with your loan.
The unique discounts they offer make the company attractive, especially if you seeking a debt consolidation loan and agree to have FreedomPlus pay off your creditors directly.
- Know the size of your monthly payment and can afford it
- Know how many payments in total you're required to make
- Understand whether there are any application or processing fees
- Understand if the loan has a pre-payment penalties
- Shop around to find the best loan rate and terms.
FreedomPlus is offered by Freedom Financial Asset Management (FFAM). FFAM is a division of Freedom Financial Network. In the spirit of full disclosure, Bills.com is part of the Freedom Financial Network