I know... it's WF. But I started banking with them in 2000 before I knew about how evil they are, and when you build up a lot of credit, it's hard to just leave (especially living in a rural town where local banks are much more conservative).
ANYWAY...
Got a letter from WF yesterday saying that at the end of August they are closing all personal lines of credit, and transferring existing balances to loans. Thankfully my balance is zero. BUT, as a self-employed person it was nice to have that instrument as a backup.
I am sharing this because I wonder if it means something is coming and they don't want the exposure? Furthermore, there was no page with text in Spanish, but there were pages of Chinese text. Wtf?
Anyone else seeing the credit line closure? Why would a bank just close a product when it is easy interest?
I think it may have to do with fears of a market crash, not sure though. I heard something before that a lot of money may be leaving the stock market and it would affect margin loans from stock brokers but I'm not sure exactly how this would relate to a line of credit
QFS incoming
Also may be crash initiated by the MOASS of GME, when the hedges are liquidated it will create dominoes that start to fall
Makes me wonder... if there is a huge crash, what is the chance that WF implodes, and if I had maxxed out that line (and saved it), the whole thing wouldbe wiped away? Is it worth it to try, do you think, and simply preserve the principal in a different account and just pay interest on it for a few months?
The fact that they have a version in Chinese and not Spanish is telling. They know something's about to happen. Either Biden's going to declare war on China as the "scare event" or Trump's going to come back and cut off all financial ties to China or they know the dam is going to break and they will be in financial ruin.
The Dam literally break? As in 3 Gorges?
Yep. I heard that would devastate them.
yes likely 100M dead and one third of their manufacturing base. I had read that somewhere, not sure if true but it would be something big
You'll be okay OP. Credit is for the sheep. You don't want to be a sheep.
Totally agree... that's why the balance is zero. But, it has been a safety net for when my business goes through dry spells.
it is costing ' them ' more money to offer this service than the return due to the interest rate.
Maybe. But considering that its all digital, the cost to provide it is minimal. The only cost is if people default... and maybe that has happeneda lot--but typically they were pretty tight with whom they offered it to. Thanks for the reply.
A lot of banks stopped providing personal lines of credit. Bank of America hasn't provided that option for years. They offer credit cards with high interest or customers can do equity lines of credits on their homes which gives a lower interest rate with collateral. It could have to do with fears of the market but I think it has to do more with profit and minimizing risk.
Line of credit system out, social credit score system in...