Review: The Pros and Cons of FedEx Employees Credit Association Personal Loans

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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 loans

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 5.99%.

  • 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.”

If you’re looking to take out a loan to cover college costs, you should check out the credit union’s student loan options and research lenders that specialize in private student loans.

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.

FedEx Employees Credit Association loan application form

Image credit: FECA

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:

  • Credit score

  • Income

  • Debt-to-income ratio

  • Loan amount and term

FECA customer service

For general information, you can contact FECA by email at info@fecca.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!
LenderRates (APR)Loan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Personal LoansFixed rates from 6.58% APR to 14.87% APR (with AutoPay). Variable rates from 6.275% APR to 12.575% APR (with AutoPay). SoFi rate ranges are current as of July 16, 2018 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.275% APR assumes current 1-month LIBOR rate of 2.10% plus 4.175% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

2 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  • Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  1. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  2. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

  • Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  1. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  2. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.73% – 29.99%$1,000 - $50,000
Check rate nowon SLH's secure site
6.28% – 14.87%1$5,000 - $100,000
Check rate nowon SLH's secure site
6.87% – 35.97%*$1,000 - $50,000Visit Upgrade
8.00% – 25.00%$5,000 - $35,000
Check rate nowon SLH's secure site
4.99% – 29.99%$10,000 - $35,000Visit FreedomPlus
5.99% – 18.99%2$5,000 - $50,000Visit Citizens
15.49% – 34.49%$2,000 - $25,000Visit LendingPoint
5.99% – 35.89%$1,000 - $40,000Visit LendingClub
5.49% – 18.24%$5,000 - $75,000Visit Earnest
9.95% – 35.99%$2,000 - $35,000Visit Avant
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.