For Partner: VISA vs PLOC vs Personal Loan ??

[Anonymous]

So, Ive been absent for quite awhile from these boards due to my GARDENING STATUS (PROUD OF IT LOL!) but my partner has an issue that Im confused on.  SO (Significant other) is looking to finance some home improvements, so the options were all laid out and we weighed interest rates vs products. We went to our local CU today, and they offered, after a pull of course (Scores 660s), a VISA or PLOC at $5000 -- but denied the personal loan.  

The LO said that in the eyes of the bank, a personal loan is "more risky" for the bank/CU because once the money is out the door, it's gone -- in other words, with a PLOC or CC they can shut it down, revoke CL or CLD you if you stop paying, your CR or score plummets, etc.... Apparently they have differing score thresholds for each product and the Personal loan has the higher threshold.

Am I understanding this right?  is the way the LO explained this correct ?  Are personal loans generally viewed differently than say a standard VISA card or PLOC ?  She opted for the VISA Classic Card @ $5000 at 17.99% btw.  Thanks all !  Just looking for some clarification on the differences on these products.

[Creditaddict]

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@Anonymous wrote:

So, Ive been absent for quite awhile from these boards due to my GARDENING STATUS (PROUD OF IT LOL!) but my partner has an issue that Im confused on.  SO (Significant other) is looking to finance some home improvements, so the options were all laid out and we weighed interest rates vs products. We went to our local CU today, and they offered, after a pull of course (Scores 660s), a VISA or PLOC at $5000 -- but denied the personal loan.  

The LO said that in the eyes of the bank, a personal loan is "more risky" for the bank/CU because once the money is out the door, it's gone -- in other words, with a PLOC or CC they can shut it down, revoke CL or CLD you if you stop paying, your CR or score plummets, etc.... Apparently they have differing score thresholds for each product and the Personal loan has the higher threshold.

Am I understanding this right?  is the way the LO explained this correct ?  Are personal loans generally viewed differently than say a standard VISA card or PLOC ?  She opted for the VISA@ Classic Card @ $5000 at 17.99% btw.  Thanks all !  Just looking for some clarification on the differences on these products.

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Sounds about right with personal loan but how about Lowes if it's home improvement.

Surely you could get something like Blispay or chase or a number of other cards that at least give some 0% time... straight 17.99% with no 0% is a no to me!

[gingerflower]

I would definitely apply with Lowes especially for home improvement.

[kdm31091]

Well, to be honest, I would have just declined the offer instead of taking it. A 17.99% card doesn't help with financing which was the goal here. Just because you go to look at options doesn't mean you're obliged to accept anything. I know the HP had already been done, but the product doesn't seem to fit a need here.

You could look into myriad 0% rewards cards; even Discover does 0% for a year and is offering 5% on home improvement for Q3. If you're okay with a more specific product, Lowe's is a good one.

[RonM21]

The suggestion of Lowes's makes sense for home improvement, as well as looking at 0% interest offers. Those may better suit you.