Wells Fargo allows you to obtain a secured loan by using your Wells Fargo Time Account (CD) as collateral. The Wells Fargo secured loan is ideal for people with bad credit and cannot get their loan applications approved by other banks. The amount of loan will be similar to the amount of deposit in the collateral account. For example, if you want to obtain a loan of $20,000, there must be at least $21,000 in the account. Once you are approved, you can expect to have access to the funds within 1 business day. The savings in your Wells Fargo CD account will continue to accumulate interest. It also help to prevent you from withdrawing the savings early so that you get charged with a penalty fee.
The interest rate is calculated based on several factors including the loan amount and credit score. If you want to get an estimate on how much interest rate you will be charged, you should use the rate and payment calculator. You can get discounts on the interest rate if you already have other types of accounts with Wells Fargo. For example, if you have a PMA Package account, you can enjoy a discount of 0.50%.
Because the interest rate is fixed, you will know the amount that you are expected to pay every month. Wells Fargo Time Account (CD) allows you to take out a loan in between $3,000 – $250,000. the loan amount is determined by several factors including location of your residence, and collateral type. The loan term is determined by the amount that you borrow and it usually range from 1 – 5 years. There is an origination fee of $75 that you have to pay. Wells Fargo secured loan is only worthwhile for those who have a big savings in their CD account.
You must have an existing checking or savings account with Wells Fargo in order to apply online. Otherwise, you will have to go to your nearest branch of Wells Fargo bank to apply for the secured personal loan. While at the local branch, you must obtain the correct application form and fill in your basic information. You must provide accurate information in the application form as Wells Fargo will be carrying out the investigation to confirm the details provided.
You will have to submit a few documents along with the application such as pay slip, income tax return, photo ID and utility bill. You can visit the Wells Fargo site to see the full checklist of documents that you need to bring to submit along with the secured loan application. They can let you know the outcome of your loan application within less than 30 minutes. It is also possible to obtain the funds for the unsecured loans within the same day.