Wells Fargo is discontinuing personal loan product – here’s what you can do instead
Wells Fargo Bank will allegedly Stop offering customers personal lines of credit, accept new applications and close the accounts of those who already had a line of credit with the bank.
“In order to simplify our product offering, we have chosen to stop offering personal credit lines as we believe we can better meet our customers’ credit needs through credit card and personal loan products,” the bank said in a statement.
Wells Fargo Revolving Lines of Credit typically provide borrowers with loans ranging from $ 3,000 to large loan amounts of $ 100,000 at a floating rate. Many use these lines of credit to pay for major purchases like home improvement supplies, debt consolidation, seasonal cash flows, or medical expenses.
Personal loans are another way to pay these costs. They usually have a lower, fixed rate and repayment deadline and can be used for some of the same things like debt consolidation or home renovations. Go to Credible to view several personal lenders that offer quick loans. They can compare rates and lenders and find a schedule that works for you.
The move is Wells Fargos’ latest in a string of loan product closings. Last year the bank announced no longer offer Home Equity Lines of Credit (HELOC). It was also announced in 2020 that it would stop giving car loans to most independent dealerships.
That could be because the bank has had a hard time making enough money to keep these areas going since the Federal Reserve imposed penalties and Growth limits on the bench because of his Fake accounts scandal that affected millions of customers’ checking and savings accounts.
But although Wells Fargo may no longer offer personal lines of credit, many smaller banks and credit unions still have them available. Personal loans and credit cards can also be good alternatives. Credible can help you compare and contrast multiple credit card types so you can compare premiums and fees from different creditors and find the perfect solution.
The bank also warned customers 60 days of the “inconvenient” closure of the line of credit, adding that it would work with them to find a possible loan solution.
If you are concerned that this Wells Fargo move, or similar moves by other banks, could affect your creditworthiness, consider using a credit monitor service. This will give you instant notifications of late payments, fraudulent activity, credit changes and more. Check out some of Credible’s partners here.
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