Line of credit

[dpage]

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!

[mrthoro77]

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.

[Red1Blue]

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@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.

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That is very high interest rate considering your high scores.

[JMN]

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?! 

[Anonymous]

Someone without a job, math skills, or food in their stomach. It is unsecured and subject to discharge in bankruptcy of course.

[scottwagnon]

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?

[scottwagnon]

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

[scottwagnon]

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".

[cdtotten]

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.

[Creditaddict]

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.