I received a letter from Wells Fargo that the bank will be closing out all lines of credit for their customers that have one. We used our line of credit for different purposes and found it to be a very useful and money saving tool. I don't know if other banks will follow suit, but if they don't I may be tempted to move my accounts to a different bank.
Wells Fargo and Lines of Credit
- Thread starter oldman
- Start date
Aunt Bea
SF VIP
- Location
- Near Mount Pilot
A few years ago I received a similar letter from BofA.
I assumed that it was a way for them to reduce the reserves required to support a seldom used credit tool.
These days I think that the banks can generate more fee income and higher rates of interest by steering people towards cash advances on credit cards.
I assumed that it was a way for them to reduce the reserves required to support a seldom used credit tool.
These days I think that the banks can generate more fee income and higher rates of interest by steering people towards cash advances on credit cards.
mathjak107
Well-known Member
- Location
- bayside ,queens , ny
In recession times the same thing happened to helocs ,which is why heloc lines of credit are no replacement for an emergency fund
A lot of banks and brokers want to sell conservative products only. Many of older brokers want buy and hold investors only.
With the banks I think they have to set aside the about of the loan or line of credit as a liability on the balance sheet. Could be they're cleaning their books for more mergers or selling off certain departments
With the banks I think they have to set aside the about of the loan or line of credit as a liability on the balance sheet. Could be they're cleaning their books for more mergers or selling off certain departments