Wells Fargo Confirms Its Shutting Down All Personal Lines of Credit

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Wells Fargo said it will no longer be offering personal lines of credit and will shut down all existing personal lines of credit for customers, according to reports. The move doesn’t appear to affect credit cards.

A spokesperson for Wells Fargo confirmed the development and said the decision to do away with personal lines of credit will allow the firm to focus on its credit card and personal loan services.

“As we simplify our product offerings, we made the decision last year to no longer offer personal lines of credit as we feel we can better meet the borrowing needs of our customers through credit card and personal loan products,” a Wells Fargo spokesperson told Fox News and other news outlets.

“We realize change can be inconvenient, especially when customer credit may be impacted,” the spokesperson added. “We are providing a 60-day notice period with a series of reminders before closure, and are committed to helping each customer find a credit solution that fits their needs.”

The move affects the bank-offered revolving credit lines, which generally allow customers to borrow between $3,000 and $100,000. For example, personal lines of credit are often used for home renovations.

Personal lines of credit have generally lower interest rates than credit cards and offer higher limits on how much one can borrow. However, they have a set draw period, whereas credit cards can remain open indefinitely—but typically have higher interest rates. – READ MORE

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