Wells Fargo account closures cast light on vague cost of a credit score hit

This month Wells Fargo (WFCannounced it was shutting down personal lines of credit, a lending product consumers could use to consolidate debt, pay for surprise expenses, or even use as a checking overdraft safety net.

The decision was made after an early 2020 review of its businesses, where the bank found that personal lines of credit weren’t as popular as loans, and only 40% of account holders had balances, a bank spokesperson told Yahoo Finance. (The main difference between a personal line of credit and credit card is that the credit limit for a line of credit can be higher than for a credit card, making it more suitable for big purchases; APR for lines of credit are typically lower than for a credit card.)