I keep eyeing the Wells Fargo Unsecured Personal Line of Credit (PLOC), particularly since they advertise up to 100K credit lines. That's the biggest I know of for unsecured LOCs available in Southern California. Generally I have been thinking I would stick with Credit Unions for large LOCs that I can take cash advances against. I think credit unions typically go up to 25K or 50K, with rates as low as 6.75%-10.25% ( e.g Western FCU 6.75%, Penfed FCU 10.25%). Many credit unions also have credit cards that don't have cash advance fees or higher cash advance APRs, so they can be used just like a LOC. Typically they go up to about 50K with similar APRs (e.g SDFCU 6.88%, Western FCU 8.99%, Penfed Promise 9.99% for cash advances.. with no cash advance transaction fees). So, to be competitive, it only make sense to use a Wells Fargo LOC if I can get in under 10.25%... preferrably closer to 9%.
Anyways, I had to stop into a Wells Fargo branch for another purpose, but I asked the banker a bit about the PLOC. I was hoping to get his personal experience about what rates were really like, what credit line sizes were like, and if they heard of any "rules of thumb" from underwriters about how interest rates or credit lines are set. Unfortunately, I didn't get much useful information from him.. except that their bankers really really want people to apply for LOCs, haha.
The best rule of thumb I've found online is from this thread ( http://ficoforums.myfico.com/t5/Credit-Cards/Wells-Fargo-Inside-info/m-p/1987397/highlight/true#M550... ). The thread cites 55% as Wells Fargo's PLOC DTI limit. The banker I talked to suggested that they would figure out my credit score to set the interest rate, then look at my debts, income, and assume I maxed out the PLOC at the interest rate they calculate to find where my 55% DTI is, and that would determine the size of the PLOC. That seems plausible to me, though I suspect they will give a bit smaller credit line, and possible higher interest rate, than this method alone would suggest simply to be conservative on a new account. (I have a mortgage and PMA account with them which the banker claims gives me a great relationship with them.. I bet their underwriters are more conservative than their salesmen, haha.. it is a different type of account from what I have used with them before, afterall).
From whogavemecredit, I could find only two Wells Fargo PLOC and they are at 19.75% (for 4.5K) and 27.99% (for 8.5k). This is far from the 100K and 7% figure Wells Fargo is advertising. The Wells Fargo website Personal Loan and Line of Credit rate calculator says that any PLOC credit amount I tested with my zipcode would be at 9% (best rate). This makes me think that the reality is far from what Wells Fargo is advertising and I might as well not bother.. save myself the inquiry.
Does anyone else have any other experience to share about Wells Fargo? Or how about rules of thumb they have heard of about how interest rates or PLOC are determined? Preferrably from underwriters (the bankers at the branch seem to say anything to get you to apply!).
Their banker kept telling me that anyone over 680 would get great rates. Based on my experience with other banks, I'm thinking that a 740 usually gets you the best rate (I'm thinking 9% is the best realistically possible from them since thats what the calculator on their website says... so far I have been unable to find someone actually getting 9%, however.). I have heard people online say 760 for some banks.. just hasn't been my experience, 740 has always been enough for the credit cards and loan products I have used at various banks.
Has anyone out there gotten 9% (or lower) on their PLOC?
Also, does anyone know what the credit line increase and APR adjustment for a Wells Fargo PLOC is like? My only experience is with products like credit cards where you might start out with a low limit and high apr.. then after a while call them and they increase the credit line and lower the APR. Maybe its similar for the Wells Fargo PLOC... or maybe things are firmer once they are set at application and its like applying all over again to get the credit line increased and the APR decreased. Maybe its very difficult to get Wells Fargo to budge on these things even after a year or more of good usage.
Please keep this thread focussed on Wells Fargo (PM me if you think other banks or products would better fit my needs). Also, this refers only to Personal (not Business) and Unsecured (no Home Equity Lines of Credit (HELOC)) Lines of Credit (PLOC).
Thank you for your comments and feedback!
