Your new house is just about perfect — except for the sagging privacy fence ringing the backyard. You know you need to replace it before it collapses onto your neighbor’s property, but it’s going to cost thousands, and you’re low on cash after ponying up for the down payment.
Fortunately, your credit is in good shape, so you’ve got a decent alternative: a relatively low-interest unsecured personal loan.
Soon enough, you come across Wells Fargo personal loans, unsecured installment loans well-qualified borrowers can use for various purposes, including home improvement financing. But is a Wells Fargo personal loan the best choice for your needs?
Key Features of Wells Fargo Personal Loans
Wells Fargo offers unsecured personal loans to people with good or better credit. These loans feature competitive rates and a wide range of terms, and you can use them for just about any legitimate purpose.
Loan Amount
Wells Fargo makes personal loans ranging from $3,000 to $100,000. Not everyone qualifies for larger loan amounts — Wells Fargo reserves those for applicants with excellent credit and high incomes.
Loan Term
Choose a loan repayment term as short as 12 months or as long as 84 months. Longer-term loans generally have lower monthly payments but charge more interest over the life of the loan.
Loan Rates (APR)
Wells Fargo’s personal loan rates start at 5.74% APR (annual percentage rate), though only the best-qualified borrowers get the lowest rates. Rates remain fixed for the life of the loan, but the starting rate may vary with prevailing interest rates. The maximum interest rate is currently 20.99% APR.
Permitted Loan Purposes
You can use your unsecured Wells Fargo personal loan for just about anything. Common uses include:
- Consolidating higher-interest debts
- Paying down a major expense, such as a hospital bill
- Financing a major household project, such as a kitchen remodel
- Covering major discretionary expenses, like a wedding or international trip
Loan Fees & Possible Discounts
Unlike some personal loan companies, Wells Fargo doesn’t charge origination fees. There’s also no prepayment penalty if you pay your loan off ahead of schedule.
Late payment fees may apply if you miss your payment due date and don’t make it up within the grace period. You can avoid this potential fee by setting up automatic payments through autopay, which entitles you to a 0.25% discount on your interest rate.
Wells Fargo also offers relationship discounts to applicants with certain Wells Fargo accounts in good standing. Accounts that qualify for a 0.50% interest rate discount include Wells Fargo Private Bank Checking, Wells Fargo Premier Checking, and Wells Fargo Prime Checking. Accounts that qualify for a 0.25% interest rate discount include the popular Wells Fargo Way2Save Checking and Wells Fargo Everyday Checking.
Online Application Process, Approval, & Funding
You can apply for a Wells Fargo personal loan online if you have an existing Wells Fargo account. If you’re not a current customer, you must apply in-branch, so it’s worth taking the time to open a checking account first.
You must provide basic personal and financial information. Though the initial process of gathering loan offers doesn’t require a hard credit pull, you have to agree to one when you’re ready to apply, which can temporarily lower your credit score.
Depending on factors including your credit score and income, you can expect a credit decision within minutes. It may take longer — days to weeks — if Wells Fargo needs more information or more time to review your application.
Once Wells Fargo approves your loan, you can review and sign the loan application and closing documents online. The funds will appear in your designated account within one business day — possibly the same day you sign.
Security & Credit Requirements
Wells Fargo makes unsecured personal loans only. You don’t have to put up any collateral, such as the title to your car, to qualify for a loan.
The upshot of an unsecured loan is the requirement that you qualify based on your credit, income, and assets.
Wells Fargo markets unsecured personal loans to people with good credit or better, so you’ll probably have trouble qualifying with a FICO score under 660. And you won’t get the most favorable terms until your FICO score tops 760.
Advantages of Wells Fargo Personal Loans
Wells Fargo has a lot going for it, including competitive rates, an unusually wide range of loan terms, fast funding, and relatively low loan fees.
- Competitive APRs. Wells Fargo offers lower rates than many competing personal lenders, though your actual interest rate depends on multiple factors, including your creditworthiness and monthly income.
- Loan Terms Ranging From 12 Months to 84 Months. Qualify for a loan term as short as 12 months or as long as 84 months, depending on how much you want to borrow and how long you need to repay.
- Same-Day Funding Under Certain Circumstances. Wells Fargo is known for fast funding on eligible loan products. If everything is in order, you can get your money on the same business day your loan earns final approval.
- Borrow Up to $100,000. Wells Fargo offers unusually large loan amounts for a personal lender: up to $100,000. On the flip side, you can borrow as little as $3,000.
- No Origination Fees. Though Wells Fargo reserves the right to charge late fees and returned payment fees, it leaves out one of the most significant personal loan fees: the origination fee. Few competing financial institutions can say the same.
- No Prepayment Fees. You won’t pay a penalty for making extra payments toward your Wells Fargo loan or paying it off in full ahead of schedule.
Disadvantages of Wells Fargo Personal Loans
Wells Fargo does have some downsides, including some that can make it difficult for certain borrowers to qualify or get what they want.
- Strict Qualification Requirements. Wells Fargo personal loans aren’t for people with limited or impaired credit. If your FICO score is below 660, it’s unlikely you’ll qualify.
- No Personal Lines of Credit. Wells Fargo offers personal loans only, not personal lines of credit. That’s a drawback for borrowers seeking the flexibility of variable draws and monthly payments. That said, Wells Fargo does offer business lines of credit.
- No Secured Loans. Wells Fargo doesn’t make secured loans. If your credit isn’t perfect, you can’t qualify for a loan simply by putting up your car or house as collateral.
Requirements for a Wells Fargo Personal Loan
Wells Fargo doesn’t publicly disclose its minimum credit score requirements or maximum acceptable debt-to-income ratio for personal loan applicants. That makes it difficult to get too specific about what’s required to get a loan.
That said, anecdotal evidence suggests that Wells Fargo requires a minimum FICO score of 660 to qualify for a personal loan. Meanwhile, most personal loan providers prefer applicants with debt-to-income ratios under 40%. In some cases, eligibility tops out at 35% debt to income.
Wells Fargo does reveal the Five C’s of Credit that inform its underwriting decisions. While not specific, they offer a helpful overview of what’s generally required to get a personal loan:
- Credit History. Wells Fargo wants to know how you’ve managed your credit over the last seven to 10 years. It pulls this information from your credit report, which it orders when you apply for a personal loan. Your credit score sums up your credit history.
- Capacity. Your debt-to-income ratio measures your ability to take on new credit and repay your loan on time and in full.
- Collateral. Wells Fargo’s personal loans are unsecured, so you don’t have to sign over collateral as a condition of approval. But having equity in your home could make you a safer bet.
- Capital. You don’t need a fat bank account balance to qualify for a Wells Fargo loan, but it doesn’t hurt. The more you have in the bank or liquid stock market investments, the healthier your finances appear to lenders like Wells Fargo.
- Conditions. These factors tend to be out of your direct control. For example, Wells Fargo might tighten its lending standards in response to deteriorating economic conditions, putting a personal loan out of reach for you until things improve.
How Wells Fargo Personal Loans Stacks Up
Wells Fargo competes against a host of personal loan companies offering competitive rates and terms to well-qualified applicants in the United States.
If you’re in the market for a new personal loan, one company you’re very likely to encounter is Lightstream, a personal loan provider that also serves well-qualified borrowers and offers higher-dollar loans. But how does LightStream stack up against Wells Fargo?
| Wells Fargo | LightStream | |
| Borrowing Limit | Up to $100,000 | Up to $100,000 |
| Credit Required | Good or better | Good or better |
| Max Term Length | 84 months | Over 144 months for certain loan types |
| Funding Speed | Same or next business day | Next business day |
FAQs About Wells Fargo Personal Loans
If this is your first time applying for a personal loan, you probably still have questions about the process. It helps to understand the basics of personal loans before diving in.
Every personal loan company has its own quirks, though. These are some of the most common questions people have about Wells Fargo personal loans.
What Is the Wells Fargo Personal Loan Acceptance Rate?
Wells Fargo doesn’t disclose its personal loan acceptance rate. That isn’t unusual. Most lenders keep that type of information under wraps for legal and competitive reasons.
However, it’s fair to assume Wells Fargo denies many personal loan applicants due to factors like poor credit and insufficient income. The better your credit score and the higher your income, the more likely you are to qualify.
What Credit Score Do I Need for Wells Fargo Personal Loans?
Wells Fargo doesn’t publicly disclose the credit score needed to qualify for a personal loan.
However, it’s widely known that Wells Fargo loans require good credit (or better) to qualify. That usually translates to a FICO score of 660 or higher.
If your FICO score is below 660, you may still qualify for a Wells Fargo personal loan if you have a co-signer with good credit or enough cash in the bank to cover the balance.
How Much of a Personal Loan Can I Get With Wells Fargo?
Wells Fargo’s maximum personal loan amount is $100,000, though your total repayment amount can be higher after factoring in interest.
However, few applicants qualify for a $100,000 loan. To qualify for the maximum, you need excellent credit, high income, and a low debt-to-income ratio.
If you don’t need a big loan, you can borrow as little as $3,000. That’s perfect if you’re on a tight budget but need extra cash to consolidate debt or cover a major unexpected expense.
How Long Do Wells Fargo Personal Loans Take to Process?
If you’re well-qualified, you can get a preliminary approval decision within minutes of applying for a Wells Fargo personal loan. If Wells Fargo’s underwriters need more information, the process could stretch to days or even weeks.
Once your loan receives final approval, you can expect your funds as soon as the same business day, depending on the time of day your approval comes through.
Final Word
Wells Fargo is one of many personal loan providers serving U.S.-based borrowers. It stands out thanks to an unusually wide borrowing range, a wide choice of loan terms, and very competitive rates.
But Wells Fargo isn’t perfect. It’s inappropriate for borrowers with impaired credit and those without much of a credit history at all. If you’re just beginning your credit journey, look elsewhere.
Even if Wells Fargo seems like a good fit for you, do your due diligence on other personal loan providers. There’s too much choice out there to settle for the first loan offer that comes your way.