Overview of FreedomPlus
With the average American household carrying $8,683 in credit card debt with an average APR of 14.99%, according to the Federal Reserve, it’s apparent that some households have overextended. And this is where companies like FreedomPlus swoop in to save you money.
FreedomPlus gives you the opportunity to rid yourself of those interest-sucking revolving credit cards with fixed-term loans that have more manageable interest rates. But how does it all work and how much can you really save using FreedomPlus?
How FreedomPlus Works
FreedomPlus works by gathering all your high-interest credit cards – you know, the ones that have a 26.9% APR – and issues you a loan to pay off the balances. Unlike credit cards, which are revolving accounts that seemingly bury you in interest each month, the FreedomPlus loan is a fixed-term solution that has a specific end date and equal monthly payments.
Not only does a FreedomPlus personal loan give you that faithful light at the end of the tunnel, but it can also simplify your life by reducing the number of payments you have to remember to make.
Because FreedomPlus loans are personal loans, you do not have to use them just for debt consolidation. You can also use them for home improvement, weddings, vacations, moving expenses and more.
How to Get a FreedomPlus Loan
First, you must have a need for $7,500 to $40,000 to qualify for FreedomPlus’ program. You must also have a valid, government-issued ID, verifiable income and a current bank account. You must also live in one of the 36 states Freedom Plus lends in, excluding Colorado, Connecticut, Hawaii, Kansas, Maine, New Hampshire, New York, North Dakota, Oregon, Rhode Island, Vermont, Wisconsin, West Virginia, and Wyoming
With this information in hand, head to the FreedomPlus website and click the “Apply Now” button. From here, you select how much you need to borrow, which can be anything between $10,000 and $40,000. You then choose what you plan to use the money for; most will use this loan to consolidate debt, but there are nine other options. Then you enter your estimated credit score, which you can get for free from sites like Credit Sesame or Credit Karma, your state and other personal data.
Once you submit all the required information, FreedomPlus will tell you whether you are preapproved for a loan or not. If you are preapproved, a loan consultant will contact you via phone or email to go through the specifics of your loan offer. Remember, a preapproval is not an approval, as you still need to go through a more detailed underwriting and qualification process.
How Long Does a FreedomPlus Loan Take?
According to FreedomPlus, it can make credit decisions the same day and deliver the funds to your bank account within 72 hours of you uploading all your supporting documents and signing the contract. Of course, this timeframe is not guaranteed, but it is a good barometer of how quickly you can expect your money if everything goes as planned.
What Are FreedomPlus’ Loan Terms?
If you qualify for a FreedomPlus loan, you can get very good terms relative to using a credit card to pay for a large purchase or continuing to pay the minimum payments on said credit cards. FreedomPlus’ loans are for two to five years and feature their APR’s range from5.99% to 29.99%. There may be an origination fee on your loan of up to 5%, but there is no prepayment penalty if you pay off the loan early.
How Much Can I Save Using FreedomPlus?
This is a tough question to answer, as every person’s situation differs. If you are close to the average in terms of debt, you would need the $10,000 minimum amount FreedomPlus lends. If you pay this over the course of three years, FreedomPlus estimates it would cost you a total of $11,606, whereas making minimum payments with a credit card at 16.99% APR would take 24 years and $23,227 to pay off. That’s a saving of $11,671 and 21 years.
This estimate assumes a 9.577% APR and an origination fee of 1.38 to 5%. Your results will vary depending on your credit and loan terms.
All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 4.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $14,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you qualify.