Reason for loan? (Credit card)

[Swatch]

A credit union confused me because I asked about a credit card, and they said it's considered a loan. They want to know specifically what I will use the card for, not generally. I'm curious if this is normal? I have never heard of this before.

But I do know that credit unions are trying to be careful and protect their other members. (I think my credit report makes me look good because I have high amounts of credit and extremely low usage, and I don't like the banks/CUs that are so picky.)

[Remedios]

CUs often refer to cards as loans, and there is nothing wrong with that because card is a loan on plastic, albeit one with shorter term unless the goal is to bleed the money on interest. 

Every time you borrow money, it's a loan. When you make a purchase, it's the lender paying for it, they you have to repay them, hence loan. 

As far as picky, every lender is picky, but picky varies from one to another.

Some don't like those with large CLs that don't look used because why give someone more  of something if it appears they aren't touching what they have. 

[NRB525]

Will you use it to buy groceries one day? "I am going to use the card to buy groceries."

They may have a box they need to fill in. Gas, groceries, restaurants, all good answers to get past the awkward question we all know is pointless. 

[Swatch]

---

@NRB525 wrote:

Will you use it to buy groceries one day? "I am going to use the card to buy groceries."

They may have a box they need to fill in. Gas, groceries, restaurants, all good answers to get past the awkward question we all know is pointless. 

---

Ok. I was just worried they would have a problem with actual use versus planned use.

[Swatch]

---

@Remedios wrote:

CUs often refer to cards as loans, and there is nothing wrong with that because card is a loan on plastic, albeit one with shorter term unless the goal is to bleed the money on interest. 

Every time you borrow money, it's a loan. When you make a purchase, it's the lender paying for it, they you have to repay them, hence loan. 

As far as picky, every lender is picky, but picky varies from one to another.

Some don't like those with large CLs that don't look used because why give someone more  of something if it appears they aren't touching what they have. 

---

Oh, thanks. I was just worried they would somehow report differently.

[Remedios]

---

@Swatch wrote:

---

@Remedios wrote:

CUs often refer to cards as loans, and there is nothing wrong with that because card is a loan on plastic, albeit one with shorter term unless the goal is to bleed the money on interest. 

Every time you borrow money, it's a loan. When you make a purchase, it's the lender paying for it, they you have to repay them, hence loan. 

As far as picky, every lender is picky, but picky varies from one to another.

Some don't like those with large CLs that don't look used because why give someone more  of something if it appears they aren't touching what they have. 

---

Oh, thanks. I was just worried they would somehow report differently.

---

Nah, everything is same, it's just internal nomenclature. 

It is a weird question, though. 

[Kforce]

---

@NRB525 wrote:

Will you use it to buy groceries one day? "I am going to use the card to buy groceries."

They may have a box they need to fill in. Gas, groceries, restaurants, all good answers to get past the awkward question we all know is pointless. 

---

^^^ This

Don't use  medical expenses, that might scare them 

[NRB525]

---

@Kforce wrote:

---

@NRB525 wrote:

Will you use it to buy groceries one day? "I am going to use the card to buy groceries."

They may have a box they need to fill in. Gas, groceries, restaurants, all good answers to get past the awkward question we all know is pointless. 

---

^^^ This

Don't use  medical expenses, that might scare them 

---

One way ticket to the Caribbean?  

[Phana24]

---

@Swatch wrote:

A credit union confused me because I asked about a credit card, and they said it's considered a loan. They want to know specifically what I will use the card for, not generally. I'm curious if this is normal? I have never heard of this before.

But I do know that credit unions are trying to be careful and protect their other members. (I think my credit report makes me look good because I have high amounts of credit and extremely low usage, and I don't like the banks/CUs that are so picky.)

---

I have been asked this for business cards.  I always answer as generally as possible.  "I intend to use the card for general business purposes, travel, motels, restaurants, car maintenance and dry-cleaning etc., as well as occasional inventory purposes.  Since my wife also runs a business on-line, there may be some soft goods that are re-sold placed on the cards as well."  Gives them lots of boxes to check-off and covers about 80% of what one could put on a card. 

[SouthJamaica]

---

@Swatch wrote:

A credit union confused me because I asked about a credit card, and they said it's considered a loan. They want to know specifically what I will use the card for, not generally. I'm curious if this is normal? I have never heard of this before.

But I do know that credit unions are trying to be careful and protect their other members. (I think my credit report makes me look good because I have high amounts of credit and extremely low usage, and I don't like the banks/CUs that are so picky.)

---

Well it sounds to me like this credit union is one of the picky ones.  Some credit unions are extremely conservative in their credit card underwriting. I have been turned down by credit unions because -- like you -- I had "hight amounts of credit and extremely low usage". I.e., although you and I think that makes you look good, some credit unions think otherwise. I was once turned down for that reason when the score they pulled was an 829.