Wells Fargo Personal Loans Review: Are They a Great Option?

Are you looking to fund a house flip, buy inventory for your side hustle, or pay for an emergency? Then you may be looking for a personal loan or a personal line of credit.

The most logical place to look for these loans is your personal bank. And if you’re like a lot of Americans, your bank is Wells Fargo.

So should you take out a personal loan from Wells Fargo? The answer depends, but you should read this review before you consider borrowing from Wells Fargo.

Make sure you also take a look at our list of the best personal loans here. See how Wells Fargo compares.

Wells Fargo offers unsecured personal loans and unsecured personal lines of credit. Wells Fargo also offers a secured personal loan and a secured personal line of credit.

These are loan options that are partially or fully secured by a CD or savings account at Wells Fargo. If you default on a secured personal loan or a secured line of credit, Wells Fargo can immediately seize the assets in the savings account or CD. If you choose an unsecured loan, Wells Fargo will have to sue you if you default on the loan.

Borrowers must be a US citizen or permanent resident and at least 18 years old to take out a personal loan from Wells Fargo.

Borrowers will also need proof of income (usually a job or tax returns). Wells Fargo does not advertise its minimum required credit score, but the rates on the loan suggest that Wells Fargo lends to people with at least fair credit (usually a FICO credit score in the high 600s).

Borrowers that don’t qualify based on their own income or credit score may apply with a joint applicant.

• Fixed interest rates ranging from 7.24% to 20.24%*
• No origination fees
• Terms from 12 to 60 months
• Borrow $3,000 to $100,000

• Fixed interest rates ranging from 7.24% to 20.24%,* but rates on secured loans tend to be lower than rates on unsecured loans
• $75 origination fee
• Terms from 12 to 120 months
• Borrow $3,000 to $250,000

• Fixed interest rates ranging from 10.00% to 21.50%*
• No origination fees
• $25 annual fee
• Credit limits ranging from $3,000 to $100,000

• Fixed interest rates ranging from 10.00% to 21.50%,* but rates on secured credit lines tend to be lower than rates on unsecured credit lines
• No origination fees
• $25 annual fee
• Credit limits ranging from $5,000 to $250,000

*These rates assume you have a checking account at Wells Fargo which allows you to qualify for a 0.25% rate discount. Also, these rates and terms are always subject to change. They are accurate as of November 29, 2018. Please check the Wells Fargo website for the most up to date loan terms.

Borrowers should be very careful about taking out secured loans or lines of credit from Wells Fargo. The cash in your accounts will earn minimal interest, while you borrow at a double-digit rate.

In general, if you have the cash, you should use the cash instead of borrowing money. In rare cases, you may want to preserve your savings while taking out a loan. In those cases, it’s probably better to opt for an unsecured loan, line of credit, or even a 0% APR credit card.

Another concerning bit of fine print comes into play for co-borrowers or loan cosigners. If you cosign a loan, you’ll have to pay the loan if the primary borrower defaults. Generally, it doesn’t make sense to cosign any type of personal loan or unsecured credit. (One exception to this rule could include a married couple taking out a loan for a joint business venture.)

Wells Fargo’s fixed-interest personal loans aren’t a great option in general. Most borrowers will find better rates elsewhere. However, its unsecured personal lines of credit may make sense for the right person.

The lines of credit have fairly high interest rates, but very low annual fees. Someone who needs a large credit limit (say you’re flipping a house) may benefit from having available credit on an unsecured line.

Outside of using the personal line of credit to open or operate a profitable business or investment opportunity, most people should stay away from Wells Fargo’s personal loans.