Yes, Wells Fargo is a direct lender, which means they handle the full loan process, from application to funding and beyond, instead of simply matching you with another lender. Direct lenders are the only ones that handle your information, so it's more secure, and they make the loan process faster by removing middlemen.
In the end, your loan comes directly from Wells Fargo, not through a partnering bank or credit union. Getting a loan from a direct lender may get you better rates than from an indirect lender, as well.
Yes, a Wells Fargo personal loan does affect your credit score, both when you apply and during the entire time that you are paying the loan off. Initially, a Wells Fargo personal loan will affect your credit score in a negative way, but the long-term impact can be very positive, assuming you repay the loan on schedule.… read full answer
How a Wells Fargo Personal Loan Affects Your Credit Score
Hard pull: When you apply for a Wells Fargo personal loan, Wells Fargo will do a hard inquiry into your credit history, which will temporarily drop your credit score by about 5-10 points in most cases.
Increased debt level: Taking out a Wells Fargo personal loan will naturally increase the amount of debt that you have. Since your debt level is one of the components of your credit score, you can expect that to have a negative impact initially.
Account diversity: One positive way that getting a Wells Fargo personal loan can impact your score right away is by adding more diversity to the types of accounts you have open. Your "credit mix" is one of the components of your credit score, and the more types of accounts you have, the better -as long as you handle them responsibly.
Payments: The biggest factor in how a Wells Fargo personal loan affects your credit score is whether you pay on time. If you make on-time payments, your score should steadily increase as a result. If you pay late or fail to make payments altogether, you can expect your credit score to drop.
The bottom line is that while a Wells Fargo personal loan does affect your credit score, most of the way that your score changes depends on how responsible you are with the loan. If you'd like to estimate how certain actions might affect your credit score, you can use WalletHub's free credit score simulator.
To apply for a Wells Fargo personal loan, first check for pre-qualification and decide which way you will apply (online, by phone, or in person), then enter your personal and financial information on the application. Next, verify the accuracy of the information, submit the application and wait to receive a decision.… read full answer
How to Apply for a Wells Fargo Personal Loan
Check for pre-qualification. Pre-qualification is a way to check your approval odds and potential rates before applying for a Wells Fargo personal loan. It doesn’t hurt your credit. You can check for pre-qualification on the Wells Fargo website.
Decide which way to apply. You can apply for a Wells Fargo personal loan online, by phone, or in person. Applying online is the best way because it typically offers the fastest decision.
Enter your personal information on the application. Wells Fargo requires the following personal information on the application: your full name, Social Security number or Individual Tax Identification Number, date of birth, citizenship status, email address, primary telephone number, and permanent address.
Enter your financial information on the application. Wells Fargo requires the following financial information on the application: employment status, work phone number, employer name, gross monthly income amount and source(s) of income (all sources you want to be considered for your loan), and monthly mortgage or rent payment amount.
Double check the application for accuracy. To ensure that your Wells Fargo personal loan application gets processed as quickly as possible, make sure that all the information is correct and complete before you submit it.
Submit your application. Wells Fargo will typically provide a decision on your application within up to 3 business days.
If you are approved for a Wells Fargo personal loan, you will generally receive the funds within 1 business day after approval. After that, it’s your responsibility to make monthly payments until you have fully paid back your loan, including interest.
The best debt consolidation loans for bad credit from direct lenders include personal loans from FreedomPlus, LendingPoint and Avant. All of these companies are direct lenders because they provide loan funds directly to their customers, rather than simply matching them up with other lenders (e.g. LendingClub). However, FreedomPlus is the only one of the three that offers direct debt consolidation in the sense that it will send payments to your old creditors on your behalf, rather than giving you the money to disburse. The other two will only make a deposit to your bank account, which you can then use to pay off your existing debts.… read full answer
There are a few other personal loan providers that are able to provide direct payments to existing creditors, such as Marcus by Goldman Sachs, Payoff and Discover. But those lenders unfortunately don’t accept applicants who have bad credit. So FreedomPlus is the best choice if you don’t want to have to send a check or bank transfer yourself. Otherwise, LendingPoint and Avant are still solid options.
Debt Consolidation Loans for Bad Credit from Direct Lenders:
FreedomPlus: Credit score of 620+ required. Borrow $7,500 to $40,000 for 25 to 60 months. APRs range from 5.99% to 29.99%. 0% to 5% origination fee. Will directly pay off old creditors 7 to 10 business days after approval.
LendingPoint: Credit score of 580+ required. Borrow $2,000 to $36,500 for 24 to 48 months. APRs range from 9.99% to 35.99%. 0% to 6% origination fee. Will not directly pay off old creditors.
Avant: Credit score of 600+ required. Borrow $2,000 to $35,000 for 24 to 60 months. APRs range from 9.95% to 35.99%. Up to 4.75% origination fee. Will not directly pay off old creditors.
Keep in mind that even though you can consolidate debt with bad credit through these lenders, you may not want to. With bad credit, you’re likely to get an APR at the high end of the lenders’ ranges. At 30% or more, that might not save you much money compared to the current cost of your debts.
As an alternative, you might want to see if any of your local banks or credit unions offer a secured debt consolidation loan. You will have to put up collateral to get the loan, but your approval odds will be higher than they would be for an unsecured loan. Plus, your APR is likely to be lower.
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