Wells Fargo To Shut Down All Personal Lines Of Credit

Update: This decision has now been reversed.

Wells Fargo will no longer be offering personal lines of credit and shutting down existing lines of credit according to a letter seen by CNBC. This product gives individuals a line of credit ranging from $3,000 to $100,000 and a fixed interest rate of 9-21%. The letter claims that these account closures may have an impact on users credit scores. This could be for a number of reasons (loss of an installment loan, credit utilization etc). It would be surprising if this account closure was listed as ‘closed by issuer’ as that’s not typically how these types of shut downs are treated. The decision to close down personal lines of credit is likely to do with the fed asset cap that was introduced. Customers have been given 60 days notice regarding this change.

Hat tip to reader Andrew D

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Daniel
Daniel

FYI–Wells Fargo reversed this decision today due to customer backlash

Gadget - Bank Bonus Geek

9 out of 10 probably didn’t even know what a line of credit was and just hoping to get a consolation check.

Curtis Mackay
Curtis Mackay

I needed to buy a home and a new car but I got denied when I tried getting a loan because I had a bad credit score, My credit score was 510 and I had some negative items impacting my credit . A friend introduced me to these experts (fixmycredit at writeme dot com) and they helped increase my score up to 797 in a month. They permanently removed all the negatives on my credit and I have been able to get approved for the loans I got turned down.

Jeff H
Jeff H

What got my goat is if I do nothing, WF will close and report to the CRs as “Closed by Bank” which historically has been frowned on the those lenders who read that. I closed it before WF did. Now the closure reads “Closed by Consumer” which is IMO better. I had it for just over 10 years. Ficos dropped by 2 points. MEH

Frugal Pug
Frugal Pug

Good to know. I’m guessing this means my WF Cashwise will be shut down soon.

Jeff H
Jeff H

No – That is a CC.. WF os closing lines of credit. totally different

TB
TB

Another person who has no idea what a personal line of credit is

Eric
Eric

After all of the negative comments I’ve read here, I must say I use WF as my main bank for payrol (personal) and business. I also have a biz credit card from them. They’re great. Far better than Bank of America, and no less than chase.

Jacob
Jacob

Being better than BoA is just about the lowest bar one could ask for.

Vy
Vy

Outrage Update: so far, none of the outrage here has been from people who actually have personal lines of credit, who know what those are, or who are actual Wells Fargo customers.

TLDR: this news has zero impact on most of you, but I enjoy feeding on your outrage just the same.

TB
TB

dude nobody cares

Babblespeak
Babblespeak

Indeed. If WF wants to skinny down their banking products, with the vitriol in these posts you’d think most people would be happy

Andy
Andy

Really dumb question, but Personal Line of Credit ≠ Installment Loan, is that right? I just opened a personal loan a few weeks ago and it shows up in my acct as “Installment Loan”. I haven’t heard anything from WF about this.

AM
AM

Right, they are similar but not the same.

Vy
Vy

Not really. They’re not even the same type of credit, and the underwriting is different. A personal line of credit doesn’t have fixed monthly payments like a loan does.

Benny Liang
Benny Liang

I know this is yesterday’s news but here’s another joke about Wells Fargo being Wells Fargo: “A Wells Fargo walks into a bar…” There, I left my two cents. Hope I made it in time before all the other Wells Fargo jokes!

Wave
Wave

I don’t have a personal line of a credit with them, but what exactly happens after the 60 day notice? Do customers have to pay off the entire balance? Is the debt written off? Is it closed for new purchases and only allows paying it down at the current interest rate?

Vaiva
Vaiva

Once the account is closed and you can no longer draw from it, your annual percentage rate will be frozen and that’s the rate you’ll pay on the remaining balance

Guy who buys stuff
Guy who buys stuff

“… and open up new ones.”

Vy
Vy

So clever. I can’t believe no one here has thought of this joke.