Wells Fargo (NYSE: WFC) is planning on raising interest rates on their credit card customers and home equity line of credit customers on December 1st.
Wells Fargo is rushing through an interest rate increase before a new federal ban comes that prevents companies selling credit card products from raising interest rates on existing balances that goes into effect on the first of December.
If you’re carrying a balance on a Wells Fargo credit card, you should consider transferring the balance to a credit card that will offer a lower interest rate. Alternatively, you could refinance that balance into a personal loan from a bank or through one of the peer-to-peer lending companies such as Prosper.com or Lending Club.
The bank as also announced that it will be doing blanket reductions in home equity lines of credit (HELOCs) without individually re-assessing each property that is associated with a line of credit. Some reports estimate that 3.6 million customers with HELOCs through Wells Fargo will be having their lines of credit cut.
If you are in the process of using Wells Fargo HELOC, consumer financial analysts, including Clark Howard, are advising that you draw down your funds immediately and deposit them at another bank so that Wells Fargo can’t draw it back from you and decrease your credit limit.
