Wells Fargo Line of Credit... Anyone Have one?

[Creditaddict]

I was shocked when my Partner handed me a special "Thank You" letter from Wells Fargo asking him to apply for an unsecured line of credit and taking .75% off rate established if auto-paid.  First I have not really seen any banks offering "Unsecured Lines of Credit" outside of CU since the credit crash.

Has anyone else seen this one, have experience?

He has been with Wells since the beginning I think and has a credit card that was opened with checking for overdraft and it had not been used in over 5 years $8600, I just got him to put Cable on it, so it reports (not dormant)

The rate range is 7%-19.75% - Clearly a 7% and then a .75% off would be amazing!! but not sure what they are looking for for that.

Also doesn't mention how much you can get, What's Max?

Best part is the only fee is $25/Annually, No BT Fee, No Cash Advance Fee!

[Link2k]

I know US Bank offers a LoC. I haven't heard of any banks discontinuing this product. I have heard WF was closing LoC for customers not using it regularly.

[scottwagnon]

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@Creditaddict wrote:

I was shocked when my Partner handed me a special "Thank You" letter from Wells Fargo asking him to apply for an unsecured line of credit and taking .75% off rate established if auto-paid.  First I have not really seen any banks offering "Unsecured Lines of Credit" outside of CU since the credit crash.

Has anyone else seen this one, have experience?

He has been with Wells since the beginning I think and has a credit card that was opened with checking for overdraft and it had not been used in over 5 years $8600, I just got him to put Cable on it, so it reports (not dormant)

The rate range is 7%-19.75% - Clearly a 7% and then a .75% off would be amazing!! but not sure what they are looking for for that.

Also doesn't mention how much you can get, What's Max?

Best part is the only fee is $25/Annually, No BT Fee, No Cash Advance Fee!

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his story is almost identical to mine. i never received a letter, however, when i called to increase my credit limit, they told me i was pre approved for their unsecured LOC. i don't want it, and because first off, it has an annual fee of 25.

second of all and most importantly, my card comes with an online bill pay advance with no fees! i can send anyone a check online and they can cash it for the amount i sent it. i only pay for the interest on the date that it was sent. and because it is treated as if it were a purchase, and because i have a 0 promo on purchases, i get to do this for free!

[Creditaddict]

Came in the mail today... Good thing I was all over it when he opened, because he read "unfortunately but your income was not sufficient for the amount you asked for"

Asked for $25k to match Navy CC

I then take the letter with a WHAT?... DECLINED! Was about to go postal when I see a money sign and my eyes dart down the page to...

"We can however offer you $16,200!".  He has to stop in the branch and accept it, I'll update once he does that and gets the APR, that wasn't in letter.

They also pulled EX  Fico stage 2 or something (forget the wording?) and it's a 776, which he remarked that is not good at all! (Silly Teir 1 Credit Borrowers!)

[andre181]

I got the same letter this week.

I don't plan on applying though. I know my income would prevent me from being approved. Being a college student with excellent credit and little income sucks!

[Creditaddict]

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@andre181 wrote:

I got the same letter this week.

I don't plan on applying though. I know my income would prevent me from being approved. 

Being a college student with excellent credit and little income sucks!

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I guess it depends just how low that income is... something got you the offer! if you use them exclusively for banking... 

[andre181]

I've been a very good Wells Fargo customer: Checking and Savings since 1998 (never had a bounced check), credit card since 2007 ($3600 CL, never late), auto loan ($13,499, paid off in 15 months never late), and numerous student loans (all paid in full and never late).

My income is limited. About $15,000/year. 

I already have $63,300 in revolving credit limits so I doubt they'd be willing to extend me anymore credit. And although I've proven that I'm very good with credit, I couldn't blame them for denying me if I applied.

Plus, I'm in gardening mode. I've got to let some inqs fall of from my last app spree.

[scottwagnon]

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@andre181 wrote:

I got the same letter this week.

I don't plan on applying though. I know my income would prevent me from being approved. Being a college student with excellent credit and little income sucks!

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I don't agree with this; lenders see the pursuit of achieving a college degree a good reason for the lack of income. Andre, if you were pre approved for a wells Fargo LOC, I would take their word for it. I believe wells Fargo is promoting their LOC more so than most banks. After all, I already have and I believe every wells fargo card holder has a LOC feature built in to their card. It is called bill pay advance.

[Creditaddict]

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@scottwagnon wrote:

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@andre181 wrote:

I got the same letter this week.

I don't plan on applying though. I know my income would prevent me from being approved. Being a college student with excellent credit and little income sucks!

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I don't agree with this; lenders see the pursuit of achieving a college degree a good reason for the lack of income. Andre, if you were pre approved for a wells Fargo LOC, I would take their word for it. I believe wells Fargo is promoting their LOC more so than most banks. After all, I already have and I believe every wells fargo card holder has a LOC feature built in to their card. It is called bill pay advance.

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I agree, if you have brought them that much business and handled all that business very well, it for them and I believe for you should be looking at progressing you into even more relationships with them.

And althought I don't have Wells Fargo, I closed it when I no longer had direct deposit... but the credit card to use as pay advance is VERY Expensive in my opinion vs. this loc would be free if you move the funds yourself.  Plus with the potential of being as low as 7%, that is fantastic for a loc based on rates I have seen in past on locs and also what many "new" credit cards after promo' are going up to.

[score_building]

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@Creditaddict wrote:

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@scottwagnon wrote:

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@andre181 wrote:

I got the same letter this week.

I don't plan on applying though. I know my income would prevent me from being approved. Being a college student with excellent credit and little income sucks!

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I don't agree with this; lenders see the pursuit of achieving a college degree a good reason for the lack of income. Andre, if you were pre approved for a wells Fargo LOC, I would take their word for it. I believe wells Fargo is promoting their LOC more so than most banks. After all, I already have and I believe every wells fargo card holder has a LOC feature built in to their card. It is called bill pay advance.

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I agree, if you have brought them that much business and handled all that business very well, it for them and I believe for you should be looking at progressing you into even more relationships with them.

And althought I don't have Wells Fargo, I closed it when I no longer had direct deposit... but the credit card to use as pay advance is VERY Expensive in my opinion vs. this loc would be free if you move the funds yourself.  Plus with the potential of being as low as 7%, that is fantastic for a loc based on rates I have seen in past on locs and also what many "new" credit cards after promo' are going up to.

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Yes, in theory, but Wells is not known for their great degree of responsiveness in valuing strong banking histories. Nonetheless, agreed- there is merit to the notion that they may be more amenable than andre seems to think based on his future earning potential and very impressive level of performance on nice roster of products at WF. Just wish he was talking about another lender (like USAA, for e.g.) IMO WF too frequently turns a blind eye to customers w/ profiles that've earned them many other excellent options and is not infrequently willing to lose good business, rather than further enage/ reward them.