If you’re looking to do some improvements on your home, consolidating some credit card debt, making a large acquisition, or perhaps starting up a new business, then a FreedomPlus personal loan could be the answer.
They are one of a handful of lenders that offer loan amounts as high as $40,000 with loan terms from two to five years. Their interest rates are relatively competitive with a priority approval process so you can have access to your money in your bank account within 48 hours. Of course you could be looking at an origination fee of 4.99% dependent upon the amount of your loan and how long the loan will be.
In this review of FreedomPlus, we will go over some of the things that people will need know before applying for a personal loan or even student loans.
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Table of Contents
An Overview Of FreedomPlus
When weighing it out, we believe that FreedomPlus is a legitimate institution that provides a genuine lending experience. For borrowers who are interested in consolidating over $7,500 of credit card debt, then FreedomPlus is a good option to consider. It’s a company policy to not make loans under $7,500 or if the applicants with fico scores under 670; however, there aren’t many other online lenders where you are given the ability to directly pay your creditors back. FreedomPlus prides itself in provide excellent customer assistance. When applying, you will be assigned a loan consultant who will guide your through the process.
The FreedomPlus loan consultant that you will be assigned from will provide you with their best customer care and will work with you over the phone to discuss your personal loan needs and monetary goals.
FreedomPlus began as a lender in 2014 and belongs to the Freedom Financial Network group with its personal loans underwritten by MetaBank and Cross River bank. Other companies within the group and Freedom Debt Relief, Bills.com and Consolidation Plus.
FreedomPlus will not charge a payment fee, but they wouldn’t be best if a borrower wants to avoid fess altogether. Every loan provided will have an origination fee, a late payment fee, a returned payment fee and a check processing fee.
Lastly, FreedomPlus only make loans start at a minimum loan amount of $7,500. For loans from $1,000 and up, borrowers should consider LendingTree and LendingClub.
Continue reading for more information if you’re thinking about a FreedomPlus personal loan.
What Is A FreedomPlus Loan?
FreedomPlus Personal Loan Review
We love the transparency of FreedomPlus Loans. They spell out exactly what you need to do for their lowest rates. Borrowers applying for a 2-year loan of $15,000 or more will need excellent credit with fico scores at 720 or higher and meet the elegibility requirements for two rate discounts.
For example, discount can be applied if the income of a co-borrower can repay the loan. You can also get a discount if 50% of the loan is directed primarily to creditors.
It’s not common for lenders to let their borrowers pay creditors, but since FreedomPlus does in fact incentivize the customers to do this, they become an appealing option for loans.
The application process is relatively sophisticated but very simple to understand. They provide you a personalized interest rate that is based not only on your credit score, but also on a summary of your career, history of payments, and many other components. It’s even possible to get rate discounts if you have retirement assets as collateral, or by using a co-borrower when applying. After the application process is complete, you can request a copy of your credit report from the 3 bureaus.
All borrowers applying for FreedomPlus personal loans will have a soft credit check and a phone interview with a customer care representative.
Borrowers will need to have a 15-20 minute call to go over their applications and to see that discounts they might receive.
FreedomPlus feels that the phone interview approach is better than simply focusing on the credit history of borrowers. It also lends to a favorable customer experience.
In any event, most of the important information about the FreedomPlus loan process isn’t on the company website, so a phone call is the best route. Which is fine because the customer care rep will be more than happy to talk to you.
High Minimum Loan Amount
With and relatively high minimum loan amount at $7,500 (that is in contrast with alternative lenders), FreedomPlus may not be suitable for borrowers looking a small loan. If you apply with companies like Credit Karma and LendingTree, the terms and minimum loan amount will vary.
We believe that if you’re looking for loans starting at $1,000, companies like Upstart and LendingClub would be a borrowers best option. On the higher end, however, the maximum loan amount with FreedomPlus is $40,000.
FreedomPlus Loan terms can range anywhere from two to five years which gives you a better chance to decide on the loan term that is right for you. But remember that some lenders have loan terms of 6+ years.
FreedomPlus Origination Fee
What Is It?
Most companies that do personal loans will require an origination fee mainly to for the loan application process and distributing the money.
So, rather than paying a flat fee, most lenders typically charge a percentage of the loan amount, usually between 1-8%. So let’s say your loan amount is $10,000, you can expect your origination fee to between $100-800.
And, as a courtesy, so that borrowers won’t have to come out of pocket, the lender will usually deduct this fee from the loan amount. So, if you’re going to need the full amount, you may want to adjust your loan request to cover the spread.
So let’s do the math:
If you need the full $10,000 with an application fee of 5%… this is how you would calculate the full amount of the loan.
- Take the loan amount and divide by .95 (100%-5% = 95%, or .95 in decimal form)
- So the full amount you’ll need is $10,526.32, or rounded up to $10,527.
Determining Your Loan Origination Fee
Not all lenders will calculate an origination fee the same way… They’ll depend on a few factors:
- The requested loan amount
- How long the loan is for
- The borrowers credit score
- If a co-borrower will be involved
- The reason for the loan
With that being said, however… having stellar fico scores and a bullet proof income may not necessarily guard you from a high fee.
Debt Consolidation Loans
Borrowers will choose this loan if they want to combine other debts into one loan and one monthly payment.
The benefit of this is that if you have multiple loans with a higher interest rate, consolidating these loans into a single loan with a small rate will either save you money every month or allow you to pay off your loan faster.
Just keep in mind that consolidation loans don’t get rid of your debt. Even though you have a smaller interest rate, some loans could have longer terms and you may end up paying more over time.
If you’re struggling to stay on top of your bills, here are a few things to do before taking out a consolidation loan.
There are a few things to consider if you’re thinking of a consolidation loan because your bills are out of control:
- Contact your creditors and ask if they will accept small payments or negotiate a lower interest rate.
- You could also ask to have your payment dates the same for all debts, reducing the headache of multiple payments.
- Talk to a credit counselor
- Watch out for companies that negotiate your debt for a fee
Common Ways To Consolidate Debt
If you do plan on a consolidation loan, you should consider the following:
A lot of credit cards will have promos of 0% for a limited time on balance transfers. If you apply and are approved, you could move balances from multiple cards to one thus lowering your monthly payment for a short time.
It’s important to study all the terms of your new credit card that you’ll be using for balance transfers. You’ll want to know exactly when the credit cards promos is completed and whether or not any new purchases will be included in the 0% promo. Most new purchases will not be. It’s more important to take advantage of this interest free time to tackle you debt head on as to avoid the same predicament in the future.
Plus, make sure you know what the the credit limit of the new card will be and if it will be enough to cover the full amount of your transfer.
You may also want to consider a personal loan which many lenders (such as banks, credit unions and online lenders) will offer to help finance a wedding, summer vacation or hospital bills in an effort to consolidate debt.
As always, be sure to research the specifics of the personal loan so that you are fully aware of the fees and terms.
FreedomPlus Customer Service
One of the unique values of FreedomPlus Loans is their customer service. All too often, it’s so easy to just get a loan online with just a few clicks of the mouse. But sometimes, it really helps to alleviate one’s anxiety if you’re able to talk to someone about your needs.
Here are just a few reviews from FreedomPlus customers:
“Quick and easy process. Customer service was exceptional and loan rep was very knowledgeable and friendly. After loan was approved the next day I was sent an email asking if I had any questions and was given customer service numbers in case I needed them in the future. This whole process is how it should be done, top notch business. Would recommend Freedom Plus to anyone.” | Ron – Bealeton, VA
“Customer service went above and beyond. Would definitely tell others about you guys. Very friendly and made it a very easy and pleasant experience. He answered every question that was asked and made sure I understood everything that was being done.” | Daniel – Ft. Worth, TX
“My loan request was approved almost instantly, and the entire process from application to receiving loan funds was as easy as I’ve ever experienced. Customer service was excellent and courteous. I would most definitely recommend this service to my family and friends who need it.” | Charles – Philadelphia, PA
Now FreedomPlus may not offer loans specifically for businesses, but since they do offer loans up to $40,000, any small business can apply and if they can show solid revenue, getting a loan should be a walk in the park.
For example, a friend of mine (we’ll call him Chuck) has a small Local Lead Generation business in which he makes websites for small business owners in his area and in cities all across the country. The way his business works is that he would find certain niches in various cities and build his website and optimize them so that they get ranked to the top of the search engines for when people search for specific services that they may need.
So for example, he has one site that focuses on heating and air conditioning.
Whenever someone searches for heating and air conditioning services is the city that he’s targeting and finds his local lead generation website, the customer will call his number (prominently displayed at the top) and the customer will be forwarded to a Heating and Air Conditioning service provider so that they can take care of the customer.
Now you’re probably wondering, “How does you friend make money with this”?
Well, it’s pretty simple, really!
Chuck has an agreement with a local HVAC guy to take any leads that are sent his way and pay him a small percentage (usually 10-15%) of any jobs that he gets.
Let’s say that within a month’s time, Chuck gets 30 calls for air conditioner service and forwards these calls onto his HVAC guy to do the jobs.
Now let’s say that his HVAC guy only does 20 of these.
The national average cost for servicing an air conditioning unit ranges from $500-$5000 (high end replacement, if needed). So let’s just use $1,000 for this example.
$1,000 x 20 = $20,000
Chuck gets 10% of that ($2,000).
So Chuck makes $2,000 from this one little local lead generation website that does nothing more than forward calls onto his HVAC guy in one city. Right now, Chuck has 10 of these websites and pulls in an average of $23,000 per month.
So Chuck had the idea of getting a personal loan to build out 20 more of these local lead generation websites and repeat the process.
Now, he’s well on his way to creating an income of nearly $60,000 per month all from these small websites.
And with making $60,000 per month, I doubt he’ll ever need to get a personal loan again.
If you’re interested in learning more about this Local Lead Generation business model, please click here.
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