Getting financing can be hard. Understanding Wells Fargo HVAC financing jargon and explanations can be next to impossible. So we asked our friends over at the artificial intelligence lab to create a quick and handy explain like I’m 5 explanation to go side-by-side Wells Fargo’s own HVAC financing credit score talk. We hope this help you better understand what options you have with financing a furnace or air conditioner in the future!
PRO Description:
Wells Fargo is one of the lenders that offer financing options for HVAC systems. According to their website1, they provide personal loans for home improvement projects, which can include HVAC replacement and installation. Some of the benefits of their personal loans are:
- No origination fee or collateral required.
- Fixed interest rate, term, and monthly payment.
- Loan amounts from $3,000 to $100,000.
- Quick online application and credit decision.
However, Wells Fargo does not specify the minimum credit score required to qualify for their personal loans. They state that they look at many factors to determine your credit options, and that a specific FICO® Score or Wells Fargo credit rating does not guarantee a specific loan rate, approval of a loan, or an upgrade on a credit card23. Therefore, the best way to find out if you are eligible for their HVAC financing is to apply online or contact them directly.
Another source of information about Wells Fargo HVAC financing is Watts Heating4, a company that offers HVAC services and partners with Wells Fargo to provide financing options for their customers. According to their website, some of the perks of their financing program are:
- 11.99% APR for up to 84 months.
- 0% interest if paid in full within 12 months (OAC).
- No interest with equal monthly payments for 6 months.
- Financing options for all credit scores as low as 620.
ELI5 Description
Imagine Wells Fargo like a big piggy bank that can help you get a special kind of money to make your home better. This special money is for fixing or changing things in your house, like when you need a new HVAC system to keep your home comfy.
Wells Fargo says you can borrow this special money without needing to give them anything valuable like your toys. They also promise that the money you borrow will have a set cost, like when you know how many candies you can buy with your allowance. They can give you this money to help pay for your HVAC system, but they don’t tell us exactly how good you need to be at sharing your toys to get it.
The best way to find out if they’ll give you this special money for your HVAC is to ask them nicely, either online or by talking to them.
And guess what? There’s another friend named Watts Heating who also knows about this special money from Wells Fargo. Watts Heating can help you get it too! They say you can pay back the special money in different ways, like giving back a little bit each month. They also have some cool offers, like if you promise to pay back the special money within a certain time, you won’t need to pay extra for using it.
Chart: Credit Score Ranges and Example APR Rates for HVAC Financing
| Credit Score Range | Example APR Rate |
|---|---|
| 300 – 579 | 15.99% – 20.99% |
| 580 – 669 | 12.99% – 15.99% |
| 670 – 739 | 8.99% – 12.99% |
| 740 – 799 | 6.99% – 8.99% |
| 800 – 850 | 5.99% – 6.99% |
In this chart, the left column shows different credit score ranges, which are like scores you get for being good at managing your money. The right column shows example APR rates, which is like how much extra you might need to pay when you borrow special money for your HVAC. When your credit score is higher, you might need to pay less extra money.
**Remember, this is just an example APR / credit score range chart. Actual rates will depend on the lender and an approved application.**
Wells Fargo HVAC Financing Credit Score FAQ
Q: What is the interest rate for Wells Fargo HVAC financing?
A: Wells Fargo offers different financing options for HVAC systems, depending on the type of loan or credit card you choose. The interest rate may vary based on your creditworthiness, loan amount, loan term, and other factors. Here are some examples of the interest rates for Wells Fargo HVAC financing:
- Personal loans: Wells Fargo personal loans can be used for home improvement projects, including HVAC replacement and installation. The interest rate ranges from 7.99% to 24.99% APR1, and there is no origination fee or collateral required. You can borrow from $3,000 to $100,000 with a fixed term and monthly payment1.
- Home equity loans: Wells Fargo home equity loans allow you to borrow against the equity in your home and use the funds for HVAC upgrades. The interest rate is fixed and depends on your loan amount, loan term, and credit profile. You can borrow up to 85% of your home’s value minus what you owe on your mortgage2.
- Home equity lines of credit (HELOC): Wells Fargo HELOCs are similar to home equity loans, but they give you more flexibility to draw money as you need it. The interest rate is variable and may change over time based on market conditions and your credit profile. You can borrow up to 85% of your home’s value minus what you owe on your mortgage3.
- Credit cards: Wells Fargo offers several credit cards that can be used for HVAC financing, such as the Wells Fargo Home Projects Visa card and the Wells Fargo Home Furnishings Visa card. These cards have variable APRs that range from 20.24% to 29.99%45, and they may offer special financing offers for eligible purchases at participating merchants. For example, you may be able to get 0% interest if paid in full within 12 months or 6 months, depending on the card and the purchase amount45.
Q: How long does it take to get approved for a loan from Wells Fargo?
A: The approval process for a loan from Wells Fargo may vary depending on the type of loan you apply for, the amount you request, and the information you provide. Here are some general estimates of how long it may take to get approved for a loan from Wells Fargo:
- Personal loans: Wells Fargo claims that you can get a quick credit decision, typically the same day, when you apply online for a personal loan1. If your loan is approved and you accept the terms, you may receive the funds as soon as the next business day1.
- Home equity loans: Wells Fargo states that it usually takes about 45 days from application to funding for a home equity loan2. However, this may vary depending on your specific situation and how quickly you submit the required documents.
- Home equity lines of credit (HELOC): Wells Fargo says that it typically takes about 30 days from application to account opening for a HELOC3. However, this may also depend on your individual circumstances and how fast you provide the necessary paperwork.
- Credit cards: Wells Fargo indicates that you can get an instant decision when you apply online for a credit card6. If your application is approved, you may receive your card within 7 to 10 business days6.
Q: What credit score do you need to get a Wells Fargo card?
A: Wells Fargo does not specify the minimum credit score required to qualify for its cards, but it says that it looks at many factors to determine your credit options7. A specific FICO score or Wells Fargo credit rating does not guarantee a certain card rate, approval of a card, or an upgrade on a card7. Therefore, the best way to find out if you are eligible for a Wells Fargo card is to apply online or contact them directly.
However, based on some online reviews and reports from cardholders, it seems that most of Wells Fargo’s cards are marketed toward consumers with good to excellent credit, which generally means a score of 670 or higher8. Some examples of these cards are the Wells Fargo Cash Wise Visa card, the Wells Fargo Propel American Express card, and the Wells Fargo Platinum card8. Your chances of being approved with a score below 670 may be slim.
On the other hand, Wells Fargo also offers some cards that may be more accessible for consumers with lower scores, such as the Wells Fargo College Cash Back Visa card and the Wells Fargo Secured Visa card8. These cards are designed to help students and people with limited or damaged credit build or rebuild their credit history. The minimum credit score for these cards may be around 560 or higher8, but other factors may also affect your eligibility.
Your credit score will also impact more than just your approval chances. Cardholders with the best credit scores are usually offered the best credit limits, interest rates, and rewards. The minimum starting limit for most Wells Fargo cards is $1,0008, but you may be able to get higher limits with a higher score.
Q: Can you use a Wells Fargo Home Projects card anywhere?
A: The Wells Fargo Home Projects card is a Visa card that can be used anywhere Visa is accepted, not just at home improvement businesses. However, the card has a separate credit limit for purchases outside of the eligible home improvement purchases, which is only a portion of your overall credit limit9. This means that you may not be able to use the full amount of your credit limit for non-home improvement purchases.
The Wells Fargo Home Projects card is designed to help you finance your home renovation projects with special financing offers from participating merchants. For example, you may be able to get 0% interest if paid in full within 12 months or 6 months, depending on the purchase amount and the merchant9. These offers are only available for eligible home improvement purchases at participating businesses, such as HVAC contractors, roofing companies, window installers, and more10.
You can find a list of participating businesses near you by using the Business Locator tool on Wells Fargo’s website. You will need to enter your date of birth, zip code, last four digits of your SSN or ITIN, and your 16-digit account or card number to access the tool10.
Q: How to finance a home addition without equity?
A: If you do not have much equity in your home or do not want to use it as collateral, you may still have some options to finance a home addition without equity. Some of these options are:
- Government home improvement loans: Some government programs offer loans for home improvement projects that do not require equity. For example, the FHA Title 1 loan can be used for a wide range of improvements, such as HVAC systems, solar panels, and accessibility renovations. You can borrow up to $25,000 for a single-family home with a maximum term of 20 years11. The interest rate may vary depending on your lender and your credit profile. Another example is the USDA Section 504 Home Repair loan, which is available for low-income homeowners in rural areas. You can borrow up to $20,000 with a fixed interest rate of 1% and a term of up to 20 years12. However, these loans have specific eligibility criteria and restrictions that you need to meet.
- Renovation mortgage refinance: A renovation mortgage refinance allows you to replace your existing mortgage with a new one that includes the funds you need for your home addition. This way, you can get a larger loan without using your equity as collateral. Some examples of renovation mortgage refinance products are the FHA 203(k) loan, the Fannie Mae HomeStyle loan, and the Freddie Mac CHOICERenovation loan13. These loans have different requirements and benefits, but they generally allow you to borrow up to 97.75% of your home’s after-improvement value with various interest rates and terms13. However, these loans may also have higher fees and closing costs than regular mortgages.
- Personal loans: A personal loan is an unsecured loan that can be used for any purpose, including home additions. You do not need any equity or collateral to qualify for a personal loan, but you will need a good credit score and income. Personal loans typically have fixed interest rates and monthly payments, and you can borrow from $1,000 to $100,000 or more with terms ranging from 12 to 84 months or longer14. However, personal loans may have higher interest rates than home equity products or government loans, and they may not cover the entire cost of your home addition.
- Credit cards: A credit card is another unsecured option that can be used for home additions. You can use your existing credit card or apply for a new one that offers rewards or special financing deals. For example, some credit cards may offer 0% interest for a certain period of time on purchases or balance transfers15. This can help you save money on interest if you pay off your balance before the promotional period ends. However, credit cards usually have lower credit limits than other loans, and they may have higher interest rates after the promotional period expires. Credit cards also have variable interest rates and minimum payments that may change over time.
I hope this FAQ and ELI5 post helps you answer some common questions about Wells Fargo HVAC financing.
