Wells Fargo Closes Personal Line of Credit – Here’s What To Do Instead

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Wells Fargo has announced to its customers that it is terminating its personal line of credit product. (iStock)

Wells Fargo Bank would no longer offer personal lines of credit to customers, accept new applications, and close the accounts of those who already had a line of credit open with the bank.

“In an effort to simplify our product offerings, we have made the decision to no longer offer personal lines of credit because we believe we can better meet the borrowing needs of our customers through credit card and loan products. staff, “the bank said in a statement. A declaration.

Revolving lines of credit through Wells Fargo typically provide borrowers with amounts ranging from $ 3,000 up to large loans of $ 100,000 with a variable interest rate. Many use these lines of credit to pay for major purchases like home renovations, debt consolidation, seasonal cash flow, or medical bills.

Personal loans are another way to pay for these expenses. They usually have a lower fixed interest rate and a fixed repayment period and can be used for some of the same things like debt consolidation or home renovations. Head over to Credible to see several personal lenders who offer quick loans. You can compare rates and lenders and find a schedule that works for you.

The move is the latest in a series of Wells Fargo loan product closures. Last year the bank announced that it no longer offer Home Equity Lines of Credit (HELOC). He also announced in 2020 that he would stop giving auto loans to most independent car dealerships.

This could be due, in part, to the fact that it has been difficult for the bank to make enough money to keep these areas in business since the Federal Reserve imposed penalties and growth limits on the bank because of its fake accounts scandal that has affected millions of its customers’ checking and savings accounts.

But while Wells Fargo may no longer offer personal lines of credit, many small banks and credit unions still have them. Personal loans and credit cards can also be a good alternative. Credible can help you compare and contrast multiple types of credit cards so that you can compare the rewards and charges of various creditors and find the perfect fit.

The bank also gave customers a 60-day warning of “inconvenient” line of credit closings, adding it would work with them to find a possible credit solution.

If you are concerned that this decision by Wells Fargo or similar actions by other banks could affect your credit score, consider using a credit monitoring service. With it, you can receive instant alerts on late payments, fraudulent activity, credit rating changes and more. Check out some of Credible’s partners here.

Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.


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