If you’re interested in applying for a personal loan, you might go to a bank or online lender. But if you’re a FedEx employee or retiree, or a household or family member of one, you have another option: FedEx Employees Credit Association (FECA) loans.
As a credit union, FECA is owned and run by its members rather than shareholders. That means it has a personal stake in its members’ finances.
It costs only $25 to join FECA, and you gain access to several personal loan options that can help you consolidate high-interest credit card debt, cover a big purchase, or make home improvements. Here’s everything you should know before getting a personal loan through this credit union.
FECA makes it easy to get access to different loans depending on your financial situation. But there are some pros and cons to keep in mind.
Pros of FECA loans
Knowing you’re part of a community that wants you to succeed financially is a big positive. Here are some more:
Multiple loan types: FECA has several personal loan options, including its Signature Loan, Freedom Loan, and 12-12-12 Specialty Loan, to suit your money needs.
Easy online application process: Since you’re already a member of the credit union, a lot of your personal information is readily available. This makes it easy to fill out an online application once you sign in.
Competitive interest rates: If you opt for the unsecured Signature Loan, you’ll have fixed interest rates starting as low as 7.99% APR, as of May 1, 2018. Be sure to check the latest rates on the credit union’s website. This type of loan can be helpful if you’re looking to consolidate your credit card debt, which had an average APR of 16.15% in November 2017, according to CreditCards.com.
Additional services: As a FECA member, you have access to several services to help you make an informed personal loan decision. The credit union has a loan calculator, for example, where you can figure out your monthly payment. Or you can visit one of its branches.
Cons of FECA loans
You have a lot of pros when it comes to being a FECA member and taking out a personal loan. But there are some negatives to keep in mind:
Interest rates could be high: The credit union’s 12-12-12 Specialty Loan and Freedom Loan have high starting APRs of 12.00% and 18.00%, respectively. Even the Signature Loan’s rate is higher than what some other personal loan companies are offering. For example, LendingClub has personal loan APRs starting at 6.16%.
Strict requirements: Depending on your choice of personal loan, you might need to have a certain credit score and meet other requirements to qualify.
Fees aren’t clear: It’s not mentioned upfront whether there are any fees, such as origination fees or late fees, associated with the personal loans.
FECA personal loans
There are three types of FECA loans: the Signature Loan, Freedom Loan, and 12-12-12 Specialty Loan. Here’s how each one works:
Signature Loan: You can borrow up to $20,000 without collateral with this loan. The loan has a fixed interest rate, so you know exactly how much you owe each month. You can get the cash almost immediately and spend it on anything from a wedding to home improvements.
Freedom Loan: If you need only a few hundred dollars to cover your rent or car payment until you get your next paycheck, you could consider this loan. FECA believes this is a safer alternative to a payday loan. Borrow between $250 and $750 with a term of six months or less.
12-12-12 Specialty Loan: This loan lets you borrow $1,200 on a 12-month repayment term with an APR of 12.00%. It could be an option if you need more than a few hundred dollars but not as much as you could get with a Signature Loan.
FECA doesn’t go into detail about its personal loan offerings upfront. But it does say that these loan products are there for “all life’s unexpected curveballs.”
Using the FECA online system
Applying for a FECA personal loan online is easy, but you have to be a member first. If you’re not, you can sign up through a separate online application. If you’re already a member, you’ll be asked to input your REX ID before starting the personal loan application process.
Since I’m not a member, I can’t go beyond that point in the process. But you’ll likely be asked to supply information such as your income, credit score, and loan amount before getting a personalized interest rate with terms.
You also can check the status of your application once it’s complete. Or you could save your application for later if you need to take a break.
FECA loan interest rates and fees
Interest rates and repayment terms vary depending on which loan type you choose. The 12-12-12 Specialty Loan has an APR of 12.00% and a repayment term of 12 months. The Freedom Loan has an APR of 18.00% and repayment terms of six months or less. The Signature Loan starts with an APR of 7.99% and has repayment terms of up to 60 months.
The Signature Loan’s rates also could be much higher depending on your credit score and other financial factors.
If there are any fees, they’re not made clear before you apply. Any fees you’d have to pay likely would be in your final loan agreement, so be sure to review it thoroughly before signing. You also could contact FECA or walk into a local branch to inquire about the fee structure.
FECA loan eligibility requirements
Aside from having to be a member of FECA, no other eligibility requirements are stipulated. But since you’re taking out a personal loan through a credit union rather than a traditional bank, the financial background check might not be as strict.
Credit unions were created to help members of a community and are not-for-profit institutions. So, you might be able to explain away some bad marks in your financial history that could disqualify you from other lenders. In general, though, certain factors are commonly taken into consideration by lenders, including:
Loan amount and term
FECA customer service
For general information, you can contact FECA by email at email@example.com. You also can call its customer service line at 800-228-8513. Its operating hours are 7:30 a.m. to 7:30 p.m. CT Monday through Friday and 9 a.m. to 1 p.m. CT on Saturday.
Note: Student Loan Hero has independently collected the above information related to these personal loans. FECA has neither provided nor reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|