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Pros and Cons of Wells Fargo Auto Loans

Who is Wells Fargo Best For?

Wells Fargo is best for borrowers who want to utilize in-person support, as Wells Fargo has many physical branches you can visit to get hands-on customer support and advice. Additionally, if your credit score isn't in the best shape, you'll be able to enlist a cosigner with Wells Fargo. 

The biggest downside of Wells Fargo's auto loans is that its terms aren't disclosed. You'll have to find them out when you apply through its network of partner dealerships. This makes it hard to easily compare rates with those from other lenders. 

How to Apply for a Wells Fargo Auto Loan

1. Gather required information. This includes your address, employment, and income details. You'll also need to find a dealer within Wells Fargo's partner network.

3. Submit a formal application and wait for an approval decision. You'll submit your loan application at the dealership, where the dealer will access your credit report to get a full view of your credit history. 

3. Budget for your monthly payments. Depending on the interest rate you receive, the amount of money you borrowed, and your term length, you could pay several hundred dollars per month. Make sure you make a plan to fit auto loan payments into your budget. 

How Wells Fargo Auto Loans Compare

Wells Fargo isn't clear about its credit score requirements or interest rates. Capital One's auto loan options beat the starting interest rates available through Bank of America for most buyers with good or better credit scores. Bank of America doesn't have a minimum credit score it considers, so it may still be worth applying even if you have a low credit score.

Capital One has an advantage over Bank of America for borrowers looking for affordable used cars. While Bank of America has a minimum loan amount of $7,500, Capital One only requires minimum loans of $4,000.

Bank of America will finance cars valued as low as $6,000, but the $7,500 minimum loan amount means that borrowers could be underwater, or have a loan worth more than the car's value. Again, Wells Fargo doesn't disclose its minimum loan amount.

See our ratings methodology for auto loans ยป 

Frequently Asked Questions

Is Wells Fargo trustworthy?

Wells Fargo has an F rating from the Better Business Bureau. The BBB, a non-profit organization focused on consumer protection and trust, gave this rating because of a failure to respond to 12 complaints against the business and government actions against the bank. The BBB measures companies by evaluating businesses' responses to consumer complaints, honesty in advertising, and transparency about business practices. 

Wells Fargo has been involved in a few recent controversies. Over the past few years: 

If Wells Fargo's history bothers you, you may want to consider other lenders.

Is Wells Fargo a good place to finance a car?

Wells Fargo might be a good option to finance a car if you can get a good rate through one of its partner dealers. Unfortunately, you won't know your rate until you apply with one of those partners.

What credit score is needed for a Wells Fargo auto loan?

The bank does not specify a minimum credit score required for its auto loans. You'll have to see if you qualify through one of its partner dealers. 

Read the original article on Business Insider