Wells Fargo Debt Consolidation Loan Review [2024]

If you’re struggling to keep up with multiple high-interest debts, debt consolidation can be an effective solution if done under favorable loan terms. If you’re an existing Wells Fargo customer, you can borrow a loan at competitive rates to roll multiple debts into a single monthly payment.

In this detailed Wells Fargo debt consolidation loan review, we’ll take a deeper look at how the loan works, who qualifies, and how much you can expect to pay in interest.  

What is the Wells Fargo Debt Consolidation Loan?

A debt consolidation loan is an unsecured personal loan that you can use to pay off your existing high-interest debts. You’ll then have a single payment to make each month instead of multiple. One of the main benefits of a consolidation loan is that you may be able to save thousands of dollars in interest if you qualify for a lower interest rate compared to the rate(s) you’re paying now.

While Wells Fargo is a bank, its personal loans are only available to existing members (the same way credit unions require membership as a prerequisite to requesting a loan). If you’re an existing customer, you may be able to qualify for a personal loan to consolidate your debts.

How Does Debt Consolidation Work at Wells Fargo?

To get a debt consolidation loan, you must have been a Wells Fargo customer for at least 12 months. You can start by prequalifying for the loan online.

If you’re happy with the loan terms in your pre-qualification offer, you can apply for the loan online or in person at one of the bank’s branches. Once you apply for the loan, you’ll typically receive a decision on the same day. The bank will send you the documents to review and sign to close the loan, and you’ll typically get the money in your bank account on the next business day.

Once the money is in your account, you can pay your creditors. Wells Fargo doesn’t offer the option of paying your creditors directly.  

Interest Rates and Application Fees

• Loan Amounts: $3,000 to $100,000
• Repayment Terms: 1 to 7 years
• Interest Rates: 7.49% to 23.24% APR
• Late Fees: $39
• Rate Discounts: 0.25% to 0.50%

Wells Fargo debt consolidation loans are competitive, with annual percentage rates (APRs) starting at 7.49%. You may also qualify for a rate discount of 0.25% to 0.50%, depending on what type of bank account you have.

There are no prepayment penalties or origination fees. However, Wells Fargo charges late payment fees of $39.

Pros and Cons of Wells Fargo Debt Consolidation

While there are many benefits of a Wells Fargo debt consolidation loan, such as competitive rates, it’s important to weigh all the pros and cons to make sure it’s the right option for you.

Pros 

• Flexible loan amounts ranging from $3,000 to $100,000
• Quick approval and funding
• Competitive interest rates starting as low as 7.49%
• Rate discounts of up to 0.50% if you set up automatic payments
• No origination fee or prepayment penalty  

Cons 

• Loans are only available to existing customers
• Low online customer ratings for the bank, in general
• Higher late fees compared to competitors

Wells Fargo Debt Consolidation Reviews and Feedback

Before you apply for a loan, we recommend paying close attention to the debt consolidation company’s online reviews. Here’s a closer look at the average ratings and what customers are saying about the company on different review sites.

Wells Fargo Reviews on BBB

As of August 2024, Wells Fargo has 1.06/5 stars from 1,005 customer reviews on the Better Business Bureau (BBB). It is not accredited and has an F BBB rating. There are also thousands of customer complaints against Wells Fargo (resolved and unresolved) on BBB.

The Office of the Comptroller of Currency (OCC) issued a Cease and Desist order against the bank in September 2021 due to its failure to establish an effective loss mitigation program.

The positive reviews on the site highlighted the convenience of a large branch network and the helpful branch staff at some of its locations, like the review below:

“Most people will only leave poor ratings, few leave good ratings. So, when I see that 958 rated this bank with a 1 star, compared to the millions of Wells Fargo Customers who didn't take the time to write something positive, I thought I would. We have been customers of Wells Fargo for a very long time. We started with Wells when they were known as Wachovia. We have had checking accounts, Savings accounts and Home Equity loans. We have lived in 3 different states and have received the same service in all three. Most recently, we have been dealing with the *************[staff name], ******* [branch name] branch, specifically, with ********.. This branch is, as in all the branches we have dealt with, are very knowledgeable, friendly and extremely attentive to our needs. If you abide by the rules, you will be happy. ********, thank you for making our experience a 5 star.”

Most of the negative reviews highlight long wait times, inefficient customer service, delays in responding to customer complaints, and lack of transparency. Here’s one such example:

“If I could give zero stars I would. I made a claim on November 21st for fraudulent activity on my account that added up to more than $1000. They said it would take 10 days to investigate. I call the claim department and was put on hold for 45 minutes. I finally was able to speak to someone and they informed me after 20 minutes that the claim was closed because they reported the money taken from my count was returned. IT WAS NOT. I have the transactions to prove it. They sent me to a higher up that didnt even listen to me and sent me to customer service. The person I talked to at customer service said they could let help so they sent me back to claims. Waited another 20 minutes and just had enough and cried and hung up. It Christmas and we need that money. At this point not only did people steal from our account but now ********************** is stealing. We are going to fight this and we will be going elsewhere with our money when this is resolved. Done with them.”

Wells Fargo Reviews on Trustpilot

On Trustpilot too, Wells Fargo has 1.6/5 stars from 295 reviews (as of August 2024). 71% of the reviews have a 1-star rating, while only 13% have a 5-star rating.

The positive reviews highlight the efficiency and helpfulness of staff members at certain locations. Here’s an example:

“I wish to commend Orlando Rivera at Wells Fargo 21st street Vero Beach Florida for helping me with a difficult money transfer to Europe. His patience and professional expertise was invaluable and greatly appreciated. It is people like him who keep me banking at Wells Fargo.”

The negative reviews highlight long wait times for customer service phone numbers and not resolving complaints satisfactorily. Here’s one review we found on Trustpilot:

“What a horrible service... I wasted hours and hours trying to explain my problem but they all answered and reacted in the same automated way, with the same methods, replies, blocked sight, and robotic voice...after each conversation I felt completely exhausted, so in the end I just gave up the money I was scammed with. I found that losing $2180 is better for my health than discussing the same issue again and again... Ppph... What a bad dream...”

Wells Fargo Debt Consolidation Reviews on Reddit

Reddit posts highlight some of the same issues we noticed on BBB and Trustpilot. While we couldn’t find much information about Wells Fargo personal loans on Reddit, we found several posts about the bank’s other products. Here’s a comment left on one such Reddit post:

“I’ll bury my cash in coffee cans in the backyard before I ever do business with them. When they bought out my old bank, I closed my accounts.

We actually had to get a lawyer to intervene with their legal department to get them to recognize my mother’s ownership of her house. They kept rejecting the paperwork from the probate court because it didn’t conform to their internal guidelines. Because they rejected it, they didn’t recognize my mother’s ownership, and wouldn’t talk to her. Or even explain why they wouldn’t talk to her. They had to be not so gently reminded that the county court was not going to change their documentation to meet the bank’s internal policy.”

Are You Eligible for Wells Fargo Debt Consolidation?

Here are the qualifying requirements you’ll need to meet to get a Wells Fargo debt consolidation loan:

• You’ll need to be an existing customer to get the loan.
• You will likely need a credit score of at least 660, though Wells Fargo doesn’t specify a minimum requirement.
• Wells Fargo will also check your repayment and credit history to ensure you have a track record of paying your bills on time.
• The bank will also check your income, though it doesn’t specify a minimum income requirement.
• Wells Fargo will also evaluate your debt-to-income (DTI) ratio, which should be less than 49%.

How To Apply

If you’re planning to apply for a Wells Fargo debt consolidation loan, you’ll need to follow these steps:

1. If you’re an existing member, you can prequalify for the loan online or visit a local branch for assistance in doing so.
2. Check the initial rate you’re offered, and if you’re happy with it, continue with the application.
3. You’ll need to provide information such as your income, employment info, Social Security number, address, date of birth, and contact information.
4. You may also be requested to provide supporting documents like your tax returns, a copy of your photo identification, utility bills (to verify your address), and recent pay stubs.   
5. Once your information is verified and your loan is approved, you can complete the closing process to get the money in your bank account.
6. Set up autopay to ensure you don’t miss any payments on your new loan.

What are the Alternatives?

If you’re not a Wells Fargo customer or if you want to explore other alternatives, there are several other personal loans for debt consolidation from which you can choose. Here’s a look at how Wells Fargo compares to other loan options.

Is Wells Fargo Debt Consolidation Right for You?

Wells Fargo debt consolidation may be a good option for those who are already a bank customer due to its competitive rates, rate discounts, and no prepayment or origination fees.

Keep in mind that the bank also has very low customer ratings and the online reviews highlight several issues customers face, such as inefficient customer service, delays in addressing client issues, and lack of transparency. If you have a good or excellent credit score, compare your options to check if you qualify for lower rates elsewhere.

It's always a good idea to explore reviews of debt consolidation companies such as Point Break Financial, Clay Advisors, and United Club Lending before moving forward. Doing so can provide you with valuable information to help you select the most suitable option for your financial needs.