#Roommates, if you’re a Wells Fargo customer, you might want to brace yourself for this recent news surrounding one of the nation’s leading banks. Wells Fargo officially announced that all personal lines of credit would be permanently shut down—and the decision impacts various financial issues for customers, such as a potentially lowered credit score.
@CNBC reports, within the next few weeks, Wells Fargo customers will no longer have the option of taking out personal lines of credit, as the company has decided to shut the service down. The revolving personal lines of credit generally gave customers the option of borrowing $3,000 to $100,000 for personal use for such things as home repairs, an alternative to consolidating high-interest credit card debt and avoiding overdraft fees linked to existing checking accounts.
In addition to no longer offering personal lines of credit, Wells Fargo will also move forward with the closure of all existing lines of credit. Reportedly, in a letter sent to customers, the company also warned that as a result of ending the personal credit lines, their credit score could be negatively impacted, and overdraft protection may no longer be available for linked accounts.
The company followed up with a statement addressing the news:
“In an effort to simplify our product offerings, we’ve made the decision 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. We realize change can be inconvenient, especially when customer credit may be impacted [and we are] committed to helping each customer find a credit solution that fits their needs.”
The decision is said to allow the company to narrow its focus to credit cards and personal loans; however, as the news began to go viral on social media, many customers expressed their decision to formally end their banking relationship with the company as a result.
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