Reply
Contributor
dpage
Posts: 82
Registered: ‎12-09-2010

Line of credit

Hello,

 

Does anyone know the general requirements for getting approved for a personal line of credit with Wells fargo? I have a few recent inq's that may affect the decision but I was curious to know what all do they look at. Any insight would be much appreciated!

Proud home owner
Lender Pull 03/28/2011 EQ:708 TU:698 EXP:709

Member
mrthoro77
Posts: 6
Registered: ‎04-13-2007

Re: Line of credit

I just got approved for LOC from Wells Fargo last night for $15k which was what I asked for. The interest rate is 13% and as of yesterday my Experian score based on they told me was a 745 with about 7 Inq within 1 year.

Super Contributor
concorduser
Posts: 6,025
Registered: ‎09-18-2007

Re: Line of credit


mrthoro77 wrote:

I just got approved for LOC from Wells Fargo last night for $15k which was what I asked for. The interest rate is 13% and as of yesterday my Experian score based on they told me was a 745 with about 7 Inq within 1 year.



That is very high interest rate considering your high scores.

Frequent Contributor
JMN
Posts: 321
Registered: ‎10-25-2009

Re: Line of credit

Wells' LOC is weird. The only unsecured LOC I've seen with rates from like 7% to 21%.

 

Who the heck would want a 21% LOC?! 

Despite my employment in the banking industry, any and all views contained in this post are purely my own, and do not represent any financial institution, nor constitute as financial or investment guidance or advise.
Valued Contributor
debtisgood
Posts: 1,126
Registered: ‎03-25-2008

Re: Line of credit

Someone without a job, math skills, or food in their stomach. It is unsecured and subject to discharge in bankruptcy of course.
Valued Contributor
scottwagnon
Posts: 1,333
Registered: ‎02-07-2010

Re: Line of credit

i thought that a 7% line of credit was pretty good. why is that a bad choice? wouldn't it be just as beneficial as a credit card with a 7% purchase apr?

EX BankCard 8 FICO 820 (250-900) 04/08/14
TU FICO 806 (350-850) 04/10/14
EX VT 3.0 805 (300-850) TU VT 2.0 891 (501-990)
Credit.com score 798 (300 - 850) TU transrisk 772
card line up here: http://ficoforums.myfico.com/t5/Credit-Cards/How-Many-Credit-Cards-Do-YOU-have/m-p/1034512#M290859
Valued Contributor
scottwagnon
Posts: 1,333
Registered: ‎02-07-2010

Re: Line of credit

i've been reading and i am seeing apr's of 9.5, 10.5, 6 and so on.

EX BankCard 8 FICO 820 (250-900) 04/08/14
TU FICO 806 (350-850) 04/10/14
EX VT 3.0 805 (300-850) TU VT 2.0 891 (501-990)
Credit.com score 798 (300 - 850) TU transrisk 772
card line up here: http://ficoforums.myfico.com/t5/Credit-Cards/How-Many-Credit-Cards-Do-YOU-have/m-p/1034512#M290859
Valued Contributor
scottwagnon
Posts: 1,333
Registered: ‎02-07-2010

Re: Line of credit

my bank wells fargo has recommended to me that i apply for a LOC. they tell me that is the same as being pre approved for it as i stand a very good chance of approval. they tell me that my line would be larger and my interest rate would be lower. currently my wells cc is 15.99% purchase apr and cl of 5100. i don't plan to apply now, but have it in the "cards".

EX BankCard 8 FICO 820 (250-900) 04/08/14
TU FICO 806 (350-850) 04/10/14
EX VT 3.0 805 (300-850) TU VT 2.0 891 (501-990)
Credit.com score 798 (300 - 850) TU transrisk 772
card line up here: http://ficoforums.myfico.com/t5/Credit-Cards/How-Many-Credit-Cards-Do-YOU-have/m-p/1034512#M290859
Established Contributor
cdtotten
Posts: 951
Registered: ‎05-27-2009

Re: Line of credit

For a borrower with good credit scores, you should have no problem securing a LOC (secured) in the Prime +1 to Prime +2 range. Anything over 6% for a good borrower I would consider high in the current economy.

 

Both Fifth Third and my Credit Union (Alliant) are offering LOCs at prime +.5.


Starting Score: 627 EQ, 621 TU - 11/15/08
Current Score: 778 EQ, 781 TU, 778 EXP 07/20/12 Lender Pull
Goal Score: 800 EQ & TU


Take the FICO Fitness Challenge
Mega Contributor
Creditaddict
Posts: 18,795
Registered: ‎10-23-2007

Re: Line of credit

Usually unless a local CU or like Navy Lines of Credit and Unsecured Personal loans are in the 8-14%.  I just finished paying off a line of credit with my local CU for 12% on 15k line, depending on the purpose of the line it could be a good idea or a bad idea.

I like it because it reported to credit as a loan vs a credit card so util is not factored in. I also like it because you know exactly how many months it's going to be to be paid off... if you have the control to pay a specific minimum on a credit card and not continue to charge on that credit card then you can probably save some money by keeping it on a credit card.

and of course some of these lines of credit are for Overdraft which my idea of that would be I would not carry a balance for more then a month or two it just makes a much cheaper option then going negative in checking (most banks I see about a $10 charge to cover overdraft vs. like $30-$35 if you bounce a checking.

Fico Scores: EQ 639 Navy, TU 665 GE, EX 677 Prosper (07-09-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
Over 30 Cards in between :smileytongue:

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+