topic Re: Wells Fargo Personal Loan (Data Points) in Personal Finance

Wells Fargo Personal Loan (Data Points)

UncleB — Thu, 26 Mar 2020 19:57:50 GMT

Due to the current uncertain times I would like to have a little extra money in the bank, even if just for a little while until things settle down. A personal loan (installment) seemed to fit the bill, so I figured I would explore my options.

I have an offer for a loan from Amex, up to 36 months at 9.48%, which while not terrible isn't the greatest rate. I also checked Marcus and was offered 9.99%, but I quickly disregarded that since at that rate I might as well take the Amex loan with no underwriting.

Then I checked Wells Fargo. On the website they offer installment loans "as low as 5.24%" which I knew was a best-case scenario, but I felt that it might be worth taking a chance since I've had a deposit account with them for 15+ years and I have a Propel with a zero balance. I figured I would have a decent chance at approval, and hopefully at a decent rate.

Anyway, I decided to go for it, and to 'cut to the chase' it was approved but at 12.24%, and that's after a 0.25% "relationship discount" for letting them set up autopay from my WF account each month. The amount is $5k, and the terms are 60 months. I'm not impressed with the APR (at all) but I'm going to at least try to make the lemons into lemonade by sharing the data points and hopefully treating this similar to a share secured loan once the 'need' for the funds has passed.

Here's the scoop: They pulled EX version 9, and I was 795. I'm at 7/24, with my last account being added back in late December, and I'm currently reporting balances on a handful of cards. My utilization is 3%-4% (depending on what's reporting that particular day).

They did not ask for any documentation, although at every step they indicated that the loan was subject to "verification." When I first entered the app it was conditionally approved, and then I got an email with instructions on what to provide. I thought this would be when they would ask for docs, but all that was there was a consent for me to "e-sign" the documents, which I agreed to. The process wasn't quite as polished as Amex, but it wasn't too cumbersome.

The first email I got prompted me to go back and login with my existing WF credentials to see what needed to be done, and a minute later I got another (nearly identical) email that said the loan was conditionally approved, and again telling me to go online to see what needed to be done.

About 15 minutes later I got another email instructing me that my closing documents were ready, and to go back to the same website to complete (e-sign) them.

After I did this, a few minutes later I got an email (these people love their emails, LOL) that the account was open, but the money wasn't in my checking account so I was hesitant to consider it a done-deal... it was OK, though - the funds were deposited overnight:

The account still isn't on my WF dashboard, but that's nothing unusual for Wells and to be fair the email even says it can take a few days. I do have the money, though... my checking account has a pending (fully available) deposit for "WELLS FARGO BANK BAL TRNSFR".

While I'm still somewhat disappointed by the APR, the overall experience wasn't bad at all. Considering I did the app around 7PM and the funds were available when I woke up I have no complaints.

Once the dust settles I will pay most of it off, and let it help prop-up my FICO scores. When I paid off my last installment loan back in 2018 my scores dropped from 810-820 to the 780s overnight. I'm not expecting a complete rebound (the loan will initially report maxed, which might even cause a drop) but eventually I'm hoping to see the 800s again.

Hopefully this info will be helpful to somebody.

Re: Wells Fargo Personal Loan (Data Points)

AllZero — Thu, 26 Mar 2020 19:59:22 GMT

Congratulations on your approval!

Re: Wells Fargo Personal Loan (Data Points)

M_Smart007 — Thu, 26 Mar 2020 21:26:30 GMT

Congratulations @UncleB !

That is pretty smart to have some spare cash in uncertain times.

I have toyed many times with a loan from WF .. I have a long history with them. (like 5 PIF auto loans)

But I also know how they be

They (UW) upset me on the phone one time, it was pretty much an insult

Propel and Cash Wise Visa do not get the spend they could

Take Care ..

Re: Wells Fargo Personal Loan (Data Points)

EverForward — Thu, 26 Mar 2020 21:44:14 GMT

Congratulations on your personal installment loan!

Thank you for sharing your experiences and extensive detailed DP.

Re: Wells Fargo Personal Loan (Data Points)

Anonymous — Fri, 27 Mar 2020 00:03:50 GMT

@UncleB wrote:
... Hopefully this info will be helpful to somebody.

Very helpful. That was a great post, Unc -- thank you, sir. Very informative. Congrats! on the approval.

Re: Wells Fargo Personal Loan (Data Points)

UncleB — Fri, 27 Mar 2020 00:22:53 GMT

Thanks everybody!

I need to add that had I 'poked around' a bit more on the Wells Fargo website, I would have come across the rate calculator that would have told me up-front that I wasn't going be near the 5.24% rate on the banner.

Rate and payment calculator: https://www.wellsfargo.com/personal-credit/rate-and-payment-calculator

When I put in my state, loan amount, months, and choose 'excellent' it comes back with 11.49% to 13.74%, which for me was accurate. To get the "super-duper" rate I would have needed to borrow $10k for 36 months, which might have been doable had I been aware. That's 100% on me - I should have looked around the website more closely.

Since I plan to quickly pay it down to a minimal amount it won't really matter, of course. Had I planned on making the minimum payments as scheduled it would have cost me "real" money, though.

I also forgot to mention, Wells Fargo lets you choose your payment date during the application process, something that Amex doesn't allow.

Re: Wells Fargo Personal Loan (Data Points)

Remedios — Fri, 27 Mar 2020 00:25:41 GMT

Congrats on the approval!

Does WF have prepayment penalty?

The one I took out from US Bank does, if repaid under a year, which was my original intent.

I've changed my mind and going to ride it into the sunset for the full term, because 2.99% really doesnt amount to much. It will probably survive my auto loan because I've dumped money into that one to keep FICO happy 😐

Re: Wells Fargo Personal Loan (Data Points)

UncleB — Fri, 27 Mar 2020 00:42:18 GMT

@Remedios wrote:
Congrats on the approval!

Does WF have prepayment penalty?
The one I took out from US Bank does, if repaid under a year, which was my original intent.
I've changed my mind and going to ride it into the sunset for the full term, because 2.99% really doesnt amount to much. It will probably survive my auto loan because I've dumped money into that one to keep FICO happy 😐

Thanks so much!

Great questions... there is no prepayment penalty. From the loan document:

You may prepay this loan in full or in part at any time without penalty. If you make a partial prepayment it will be credited to your account, but there will not be any change in your scheduled payment amounts or due dates unless we have agreed in writing to such a change.

The second part of that actually made me nervous, since it's not clear on how they would treat a large single payment (this seems to indicate the next month's payment would still be due).

Then later in the document I came to this (I signed up for autopay):

Your payment will not be withdrawn from your checking or savings account if your Account is paid in advance. In that event, your automatic payments will resume and be withdrawn from your checking or savings account beginning on the next payment due date as shown on your monthly Account statement.

This seems to put my concern to rest, and supports the past reports that other myFICO'ers have shared that making a lump-sum payment will push the payment date out, which is what I want.

If this loan was at 2.99% like your loan with U.S. Bank, I would ride it out to the sunset for the full term as well. That's an awesome rate! I hear ya on keeping FICO happy... that wasn't my first priority with this loan, but if it can serve that purpose as well I'll consider that to be the silver lining around the cloud (high APR).

Re: Wells Fargo Personal Loan (Data Points)

Remedios — Fri, 27 Mar 2020 01:17:06 GMT

I just dont understand why US Bank requires you to live in a state where there are physical branches and go into one.

I appreciate their gesture, I took it after all, but I would have hoped they would be a little bit more accommodating with a relief loan.

I'm not even sure if you have to be a customer, because for their regular personal loans you dont.

Going to the branch to sign three times on electronic pad is a must.

Re: Wells Fargo Personal Loan (Data Points)

UncleB — Fri, 27 Mar 2020 01:49:11 GMT

@Remedios wrote:
I just dont understand why US Bank requires you to live in a state where there are physical branches and go into one.
I appreciate their gesture, I took it after all, but I would have hoped they would be a little bit more accommodating with a relief loan.
I'm not even sure if you have to be a customer, because for their regular personal loans you dont.
Going to the branch to sign three times on electronic pad is a must.

Since you mention that, during the application process for Wells Fargo they make you specify a branch that you might go into to discuss your loan, even if you're doing the e-sign thing. It said that choosing a branch wouldn't prevent you from completing the process electronically so I tried to just skip that step, but it forced me to choose a branch to continue.

I guess it's a left-over process from the legacy "face-to-face" days, LOL.

It's so funny... years ago they wanted people to come by the branches, and these days they are doing everything possible to keep you away (even pre-COVID). I even got an email from WF a week or so ago that they have raised my mobile deposit daily/monthly limit. I think I might have used it once, LOL. (I avoid mobile deposit on anything but 'toy' checks since I know that making a deposit via ATM makes Reg. CC kick in, but mobile deposit doesn't.)

Re: Wells Fargo Personal Loan (Data Points)

Remedios — Fri, 27 Mar 2020 02:36:06 GMT

When I went there, I was afraid they would want to talk to me about "additional" products, so I went during lunch break, wearing white coat, radiation badge, n95, and I even snagged a stethoscope from one of my RNs (I dont know where mine is 😐)

I basically looked like 21 century version of plague doctor. In and out in 5 min 😂

Re: Wells Fargo Personal Loan (Data Points)

UncleB — Fri, 27 Mar 2020 03:14:52 GMT

@Remedios wrote:
When I went there, I was afraid they would want to talk to me about "additional" products, so I went during lunch break, wearing white coat, radiation badge, n95, and I even snagged a stethoscope from one of my RNs (I dont know where mine is 😐)
I basically looked like 21 century version of plague doctor. In and out in 5 min 😂

This is too funny!

Re: Wells Fargo Personal Loan (Data Points)

Meanmchine — Fri, 27 Mar 2020 03:18:00 GMT

Congrats UncleB.

Question for you. Why didnt you try LendingTree for SP offers from numerous lenders?

Re: Wells Fargo Personal Loan (Data Points)

AverageJoesCredit — Fri, 27 Mar 2020 03:30:19 GMT

Congrats @UncleB great post. Lol im done with WF, if you dont have credit usage on your cards they dont want to approve cc at least to me. I would really love to get some extra cash ie a emergency loan or what not but unlike the majority who have ways to pay it back im not confidant in where ill be financially in a year so im just gonna go day for day. Enjoy it , you deserve it my friend

Re: Wells Fargo Personal Loan (Data Points)

UncleB — Fri, 27 Mar 2020 03:32:40 GMT

@Meanmchine wrote:
Congrats UncleB.
Question for you. Why didnt you try LendingTree for SP offers from numerous lenders?

Thanks!

Very good question... I wanted a loan that I was certain wouldn't report as a CFA, and I didn't have time to do due diligence on the lenders LendingTree might offer to see how they would each report. I also wanted a loan that would allow me to pay ahead without moving up the payoff date, and I was fairly sure that would be the case with WF.

Finally, I also wanted a loan that would have easy underwriting, and I figured WF would fit the bill on that since I already have multiple accounts with them.

TL;DR: Time was an issue, and WF checked all the boxes.

Re: Wells Fargo Personal Loan (Data Points)

UncleB — Fri, 27 Mar 2020 03:38:40 GMT

@AverageJoesCredit wrote:
Congrats @UncleB great post. Lol im done with WF, if you dont have credit usage on your cards they dont want to approve cc at least to me. I would really love to get some extra cash ie a emergency loan or what not but unlike the majority who have ways to pay it back im not confidant in where ill be financially in a year so im just gonna go day for day. Enjoy it , you deserve it my friend

Thanks so much, @AverageJoesCredit!

For better or for worse I continue to carry some balances (all at 0%, thankfully) and you're right that there are some oddball lenders out there who actually see that as a positive thing.

I've been in a position where I had to take things 'day to day' as well, and I know how lousy that is. I also know it's not forever, though... hang in there my friend, things will get better!

Re: Wells Fargo Personal Loan (Data Points)

Meanmchine — Fri, 27 Mar 2020 12:22:38 GMT

Another question. Can you do a BT and PIF your loan and save interest?

Re: Wells Fargo Personal Loan (Data Points)

Gmood1 — Fri, 27 Mar 2020 12:43:19 GMT

@Meanmchine

I was thinking the same thing.😉

That would save my UnkaB a lot of money!

Re: Wells Fargo Personal Loan (Data Points)

AverageJoesCredit — Fri, 27 Mar 2020 13:01:25 GMT

@UncleB wrote:
@AverageJoesCredit wrote:
Congrats @UncleB great post. Lol im done with WF, if you dont have credit usage on your cards they dont want to approve cc at least to me. I would really love to get some extra cash ie a emergency loan or what not but unlike the majority who have ways to pay it back im not confidant in where ill be financially in a year so im just gonna go day for day. Enjoy it , you deserve it my friend
Thanks so much, @AverageJoesCredit!

For better or for worse I continue to carry some balances (all at 0%, thankfully) and you're right that there are some oddball lenders out there who actually see that as a positive thing.

I've been in a position where I had to take things 'day to day' as well, and I know how lousy that is. I also know it's not forever, though... hang in there my friend, things will get better!

Thanks @UncleB as always your words of comfort are well, comforting

Re: Wells Fargo Personal Loan (Data Points)

Anonymous — Fri, 27 Mar 2020 14:45:43 GMT

@M_Smart007 wrote:
Congratulations @UncleB !

That is pretty smart to have some spare cash in uncertain times.
I have toyed many times with a loan from WF .. I have a long history with them. (like 5 PIF auto loans)
But I also know how they be

They (UW) upset me on the phone one time, it was pretty much an insult
Propel and Cash Wise Visa do not get the spend they could

Take Care ..

Oh, when I read this line my thinking says that the State of California had a lean on your body for past activities? Aw, but such is life