Wells Fargo closes lines of credits, what does this mean?

[QuarterMillionMan]

Wells Fargo closed your personal line of credit. Here are some other options (msn.com)

Will FICO scores drop? Does Wells Fargo anticipate bad times ahead? What does this all mean.

[disneysteve]

There's a lot of discussion about this over on the early retirement forum. It probably doesn't mean much other than they weren't making enough money on the product so they dropped it. Customers aren't happy of course, but I don't know that it's a sign of anything deeper than that.

[kork13]

There's a lot of discussion about this over on the early retirement forum. It probably doesn't mean much other than they weren't making enough money on the product so they dropped it. Customers aren't happy of course, but I don't know that it's a sign of anything deeper than that.

Agreed... Given their performance over the last number of years, I don't exactly trust WF to have a prescient feel for the market or economy -- merely an addiction to profits at any cost. So this likely is just them trimming an unprofitable product line.

[ua_guy]

Considering it's WF, isn't the appropriate question to ask, did you even open one/know you had one opened for you, in the first place?

[srblanco7]

There's a lot of discussion about this over on the early retirement forum. It probably doesn't mean much other than they weren't making enough money on the product so they dropped it. Customers aren't happy of course, but I don't know that it's a sign of anything deeper than that.

Beyond the potential credit score impact, this likely puts those who had a HELOC balance (article mentions a 60 day closure period) in a bit of a scramble to secure an alternative. The quote from the Financial Planner regarding a loan against a whole life policy or 401k loan made me "cringe" - two fine examples of things that should be avoided.

[Petunia 100]

Beyond the potential credit score impact, this likely puts those who had a HELOC balance (article mentions a 60 day closure period) in a bit of a scramble to secure an alternative. The quote from the Financial Planner regarding a loan against a whole life policy or 401k loan made me "cringe" - two fine examples of things that should be avoided.

Which article? The linked MSN article doesn't say that HELOCs are being cancelled. It does say:

A personal line of credit is a type of unsecured loan, meaning it's not backed by collateral.

which excludes HELOCs.

[Petunia 100]

Wells Fargo closed your personal line of credit. Here are some other options (msn.com)

Will FICO scores drop? Does Wells Fargo anticipate bad times ahead? What does this all mean.

IMO, it just means that they would prefer you use a credit card instead.

[disneysteve]

IMO, it just means that they would prefer you use a credit card instead.

I’m sure those are far more profitable for them.