While trying to resolve an urgent financial situation, you discovered Wells Fargo Personal Loans. However, numerous lenders in the market offer personal loans with different features.
Is Wells Fargo the most suitable for you?
We did a full review and found that Wells Fargo is a reasonable option if you require a large loan amount. You must, however, meet the credit requirements for your application to be considered. You may want to consider other options instead if you don't.
Wells Fargo Overview
Wells Fargo is one of the largest banks in the USA, offering unsecured personal loans to existing users with good credit scores. It prioritizes borrowers' credit scores and does not collect origination fees and prepayment fees on its loans. Wells Fargo Personal Loans currently serves all states in the U.S.
Wells Fargo Personal Loans Highlights
- Loan Amounts: Wells Fargo offers Personal Loans from $3000 to $100,000.
- Loan Types: Wells Fargo offers unsecured personal loans only.
- Available States: Wells Fargo gives out personal loans to residents in all states in the U.S.
- Credit Check: Wells Fargo does a hard credit pull each time you apply for a personal loan.
- Minimum Credit Score: Wells Fargo does not post minimum credit score requirements on its website. Most lenders expect borrowers to have a credit score of at least 670 to qualify for a lower APR.
- Minimum Income: Wells Fargo does not disclose its minimum income requirements. The ideal debt-to-income (DTI) ratio is less than 36%.
- Funding Time: One business day to deposit the funds into your account.
- Repayment Term: Wells Fargo allows you to choose a payment term, between 12 to 84 months, depending on your loan amount.
- Interest Rate: The interest rates on Wells Fargo Falls between 7.49% to 23.24%.
- Fees: Wells Fargo may charge a late fee of up to $39 after a 10 days grace period.
- BBB Rating: Wells Fargo is not accredited with Better Bureau Business.
Availability: Wells Fargo doesn't have any branch locations in these 14 states.
(Hawaii, Indiana, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Missouri, New Hampshire, Ohio, Oklahoma, Rhode Island, Vermont, West Virginia.)
But it doesn't mean they don't serve them there. Wells Fargo accepts online applications for personal loans from its users. So, even residents of the states without a Wells Fargo branch can apply online as long as they are already customers.
- Wells Fargo Doesn't Charge Origination Fees and Prepayment Fees.
- Wells Fargo Charges Low Interest Compared with Other Lenders.
- Wells Fargo Gives an Interest Rate Discount for Qualifying Customers.
- Wells Fargo offers high minimum loan amounts.
- Wells Fargo doesn't have branch locations in these 14 states.
- Historically, Wells Fargo has poorly managed customer information.
SWells Fargo offers personal loans to people with good credit at low rates. However, it has mismanagement of customer information. Borrowers who aren’t users also have a hard time applying.
Where Wells Fargo Personal Loans Stand Out
Wells Fargo Doesn't Charge Origination Fees and Prepayment Fees
Many lenders collect origination fees to process their loans; however, Wells Fargo does not. It does not collect the processing fee, so your loan amount will not reduce when deposited into your account. There are also no prepayment penalties if you want to pay off your loan early.
Wells Fargo Charges Low Interest Compared with Other Lenders
Traditional banks that give out loans normally have high interest rates, but this is not the case with Wells Fargo. It provides reasonable interest rates on personal loans borrowed by users. Note that only borrowers with good to excellent credit can apply for Wells Fargo personal loans to enjoy the low APRs.
Wells Fargo Gives an Interest Rate Discount for Qualifying Customers
Customers with a qualifying Wells Fargo checking account that makes auto payments from a Wells Fargo deposit account can qualify for a customer relationship discount.
Such a customer receives a 0.25% discount on their APR, which helps to reduce their total loan cost. Note that canceling the automatic payment at any point disqualifies you from the discount.
Where Wells Fargo Personal Loans Fall Short
Wells Fargo offers high minimum loan amounts.
Unlike most personal loan lenders, Wells Fargo offers $3000 as its starting loan amount. For some borrowers, that may be a great feature; however, those who need small loan amounts, between $200 to $2900, cannot get it from Wells Fargo. Even with good credit scores, they have to seek other options.
Wells Fargo doesn't have branch locations in these 14 states
While Wells Fargo allows its customers to apply for and process personal loans online, non-clients must visit a physical branch to get a loan. This rule is particularly disadvantageous to residents in 14 US states, including:
- New Hampshire
- Rhode Island
- West Virginia
The above states don't have a physical branch of Wells Fargo. So, If you are not already a member and reside in those states, you may have to go interstate to open an account and apply for a loan.
Historically, Wells Fargo has poorly managed customer information
Over the years, Wells Fargo has been tagged in many scandals, including data breaches in 2017 and 2021, exposing numerous customers' sensitive details. There have also been scandals of the bank creating fake bank accounts to hit its sales target and overcharging APRs on mortgages and auto loans.
Compare Wells Fargo with other lenders
Wells Fargo offers large loan amounts at reasonable costs to customers with good to excellent credit scores. However, not everyone can meet its criteria or enjoy all the perks of taking out a loan with the bank.
Therefore, seeking other loans that meet your needs is advisable, especially if you have a bad credit score or require a small loan.
To help out, here's a side-by-side comparison of Wells Fargo and two lenders, Personal loan ™ and BadCreditLoans highlighting their major features:
7.49% to 23.24%
5.99% to 35.99%
$3,000 to $100,000
$1,000 to $35,000
$500 - $10,000
12 - 84 months
3 - 72 months
3 - 72 months
In all states
In all states
Wells Fargo vs. Personal Loans™
Wells Fargo provides large loan amounts, which makes it the perfect choice for those with mega expenses. Personal Loans ™, on the other end, gives out a lower minimum loan amount making it suitable for those seeking to borrow small loans.
While you can get an interest rate as low as 5.99% on Personal Loans ™, Wells Fargo starts at 7.49%. Notably, the APR range of Wells Fargo is more closed than Personal Loans ™. Note, however, that Wells Fargo does not give out installment loans for bad credit, while Personal Loans ™ does.
Another difference worthy of note is the BBB ratings of both lenders. Wells Fargo is yet to be rated by BBB, and Personal Loans ™ has an A- rating. Since Personal Loans ™ is recognized by a reputable customer review company, it is more reliable and accountable than Wells Fargo.
Lastly, Wells Fargo is better if you want a longer loan term.
Wells Fargo vs. BadCreditLoans
BadCreditLoans offers loans for bad credit, meaning those without excellent credit scores have a high loan approval chance with them.
Conversely, Wells Fargo only caters to people with fair to excellent credit scores. If you don't meet their 600 credit score, you have to seek alternative lending platforms, like BadCreditLoans.
BadCreditLoans is recognized and rated by BBB, meaning they are credible, unlike Well Fargo, which is yet to get a rating.
If you have small expenses, BadCreditLoans offers small loans from $500. On the other end, Wells Fargo provides loans from $3000, meaning it is more suitable for those with large expenses.
BadCreditLoans' starting APR is about 2% lower than Wells Fargo's. This means you can secure loans at a lower cost on BadCreditLoans; however, it can also go higher than Wells Fargo's APR, depending on the loan amount.
Requirements For Wells Fargo Personal Loans
First, you need to be a Wells Fargo customer to apply for a personal loan. If you are not, visit the nearest branch to become one and apply.
The following are the documents required to apply for a loan at Wells Fargo:
- Personal Information: You need to provide documents confirming your SSN or ITIN, Date of birth, citizenship status, email address, primary phone number, and address. Winston members are required to bring proof of marital status too.
- Employment and income information: Show proof of your employment status, work phone number, employer's name, gross monthly income, other income sources, and monthly mortgage or rent payment amount.
- Personal Loan Info: This includes your loan purpose, preferred repayment term, loan amount, and desired payment due date.
- Additional document: Wells Fargo may require other proofs, like a Copy of your driver's license, social security card, recent pay stub, or tax returns, utility bills, power of attorney, employment and income authorization form, IRS form 4506C, and info to payoff current accounts.
Contact customer service (1-877-526-6332) to get specific details.
5 Steps to Apply for Wells Fargo Personal Loans
Step 1: Use its calculator to estimate the rate
Wells Fargo does not offer pre-qualification as part of its application process. Instead, it offers a rate and payment calculator that allows you to estimate your own rates, but it only gives you a range, which can fluctuate significantly.
To find out what your exact rate will be for a Wells Fargo personal loan, you'll need to complete a formal application, which requires a hard credit inquiry and may affect your credit scores.
Step 2: Apply and wait for approval
If you are satisfied with the rate and terms, fill out an application form. You will be asked to submit more information to verify your identity, income, and employment status. Submit all the required documents, then await approval, which can come between 1-3 business days.
Step 3: Review the Loan agreement and sign
After your loan is approved, you need to sign an agreement before getting funded. Read through the terms and conditions carefully and sign.
Step 4: Get funded
Once your loan gets approved, you will receive the deposit in your account within two business days.
Step 5: Repay Your Loan
Most importantly, you must repay your loan timely to avoid paying late fees. You can set automatic payment so as not to miss a payment.
How CreditYelp rates Wells Fargo
|Requirements & Application||3.2/5||Non-clients must visit a physical branch to get a loan.|
|Loan accessibility||2.5/5||Wells Fargo does not have branches in 14 states, so the residents cannot walk in to apply or become users.|
|Affordability||3.5/5||Wells Fargo offers competitive interest rates compared with other lenders.|
|Customer experience||2.8/5||Wells Fargo has poor ratings on Trustpilot.|
|Transparency||3/5||Wells Fargo doesn’t disclose precise information for personal loan requirements on its official site.|
Wells Fargo FAQs
Q1: What Do I Do if Wells Fargo Rejects My Application?
If you don't meet the credit score, income, and document requirements of Wells Fargo, your application will most probably get rejected. When that happens, it is advisable to reach out to customer support to know why your application got rejected.
Sometimes, the reason for the rejection may be rectifiable, like submitting the correct documents if the problem is incomplete documents.
However, if the problem is a low credit score, you must improve it to reach the minimum credit score requirement, which can take time. You can increase your creditworthiness by paying off outstanding debts, getting better pay, and mixing your credit types.
You may look for other alternatives offering loans for bad credit instead of waiting or co-apply where possible to gain approval.
Q2: Does Wells Fargo have a mobile app?
Wells Fargo has a mobile app where customers can apply for and manage their loans. You can check your loan status, repay your loan, check your credit score, view your balance, and more.
Q3: Must You Be A Wells Fargo Customer to Get a Loan?
Anyone who meets the requirements of Wells Fargo can get a loan; however, the application mode is different. You can apply for and process your loan online if you are an existing user. Non-customers, on the other end, have to physically visit a Wells Fargo branch to apply for a loan.
Q4:Does Wells Fargo Personal Loan report your account activity to credit bureaus?
Yes, Wells Fargo reports their customer's account activities to the three major credit bureaus, Experian, Equifax, and TransUnion. So, if you pay your debt on time, your credit score may improve, but if you miss it, it may harm your score.