Why did Wells Fargo stop lines of credit?
CNBC first reported the change on Thursday. “In an effort to simplify our product offerings, we've made the decision to no longer offer personal lines of credit,” the bank told CNBC in a statement, “As we feel we can better meet the borrowing needs of our customers through credit card and personal loan products.” ForbesHave A Personal Line Of Credit With Wells Fargo? Do This Next – Forbes Advisor
Is Wells Fargo shutting down my credit card?
Here's what happens next. Why the bank says it plans to "simplify" offerings, and what that means for customers. Wells Fargo is shutting down all existing personal lines of credit in the coming weeks and will no longer offer the product to customers. CNETWells Fargo is closing your personal line of credit account. Here's what happens next
Is a credit card a personal line of credit?
A personal line of credit is similar to a credit card. Users are given a credit limit, based on their credit history and income, and they can borrow up to that limit on an ongoing basis. They are often used to consolidate high-interest debt at a lower rate or pay for expensive projects like house renovations. CNBCWells Fargo is shuttering all personal lines of credit. Here's what customers need to know
Not a single @WellsFargo customer should see their credit score suffer just because their bank is restructuring after years of scams and incompetence. Sending out a warning notice simply isn’t good enough – Wells Fargo needs to make this right. https://t.co/wyuuY2WEk5
CNBC noted that with less credit available for a customer to use, it would likely mean that customers would have to draw more from available credit and hurt their credit score.
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