Why is it so easy to obtain a high CL CC and not a personal loan?

[AzCreditGuy]

I am mixing business and personal here. I just received a Marcus GM CC with a SL of $31k for my business. The process took about a week before I got my physical card in the mail.  I still dont know who they pulled for SP as none have come up on my big 3, I was told they pull EQ. Nothing on personal as well for HP. Business has been open since 2007 and has a high Duns rating. 

When you open up an account with Marcus, they have other products as well. I wanted to see if I could prequal for a personal loan for $31k . It was a SP to prequal. They used TU, which I have 0 inquires.  They also used Sagestream LLC, which has shown up on my Innovis credit report. I just had a recent dispute with them when an inquiry was placed from Sagestream LLC last year and I never applied.  Oh yea I got my Digetal Adverse Action Letter below 

The CFA is from SOFI  loan and I closed that account within 2 years of getting it and I am also dinged because I dont have a loan outstanding.

My one and only oldest CC is 7 years and 7 months 

All other  6 CC are 3 years and 1 month old

I have over $110K in CL from the above cards with total UTI at 3% 

My Cap1 is the only  the single higest UTI at 35% all others are below 3%. That Cap 1 will be zeroed out by the end of the month. 

How is it I was able to get $31k on a business CC, but I cant get a personal loan for $31k on the same credit scores?

[youdontkillmoney]

I've asked different creditors this same question and usually what they say there are different "underwriting" standards for diffrent credit types, i.e. applying for credit card, personal loan, line of credit, home loan, car loan etc. some are secured and some not, some have different DTI requirements, or other similar standards to measure your creditworthness by. one thing you can do to access cash since you have so many cards is find a card with a zero promo bal transfer offer and maybe just a small fee for balance transfers, transfer $x to a card with a zero balance, then go to that credit card company and say you want a credit refund, presto you got cash. though technically you are not suppose to treat cc's in this way, but it should work if you need access to cash.

[Credit12Fico]

A personal loan is cold hard cash like a cash advance on a CC.  CC cash advance limits are typically much smaller than your credit line. 

For what it's worth, a lot of credit cards are letting you take out pseudo- personal loans on your credit line. 

[Credit17]

I'm not sure but I suspect that it deals with risk.  The majority of people with a CC limit of $31k do not use the full limit.   And, for those who do, it usually happens over time so the bank can reassess risk as you get closer.  So the bank doesn't really lend you the full $31k most of the time.  In addition, the CC will likely have a higher interest rate and the bank gets a swipe fee every time that a charge is added to get you to that number -- each of those are added consideration for the extra risk.

But in a personal loan you get all the money at once with no ability for the lender to mitigate its risk after the fact and with a potentially lower interest rate.  

[AzCreditGuy]

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@youdontkillmoney wrote:

I've asked different creditors this same question and usually what they say there are different "underwriting" standards for diffrent credit types, i.e. applying for credit card, personal loan, line of credit, home loan, car loan etc. some are secured and some not, some have different DTI requirements, or other similar standards to measure your creditworthness by. one thing you can do to access cash since you have so many cards is find a card with a zero promo bal transfer offer and maybe just a small fee for balance transfers, transfer $x to a card with a zero balance, then go to that credit card company and say you want a credit refund, presto you got cash. though technically you are not suppose to treat cc's in this way, but it should work if you need access to cash.

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Yeah Ive thought of doing that, but what I am trying to do is get on the business side, so it wont show up on personal side. 

[purebulldogs]

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@AzCreditGuy wrote:

I am mixing business and personal here. I just received a Marcus GM CC with a SL of $31k for my business. The process took about a week before I got my physical card in the mail.  I still dont know who they pulled for SP as none have come up on my big 3, I was told they pull EQ. Nothing on personal as well for HP. Business has been open since 2007 and has a high Duns rating. 

When you open up an account with Marcus, they have other products as well. I wanted to see if I could prequal for a personal loan for $31k . It was a SP to prequal. They used TU, which I have 0 inquires.  They also used Sagestream LLC, which has shown up on my Innovis credit report. I just had a recent dispute with them when an inquiry was placed from Sagestream LLC last year and I never applied.  Oh yea I got my Digetal Adverse Action Letter below 

The CFA is from SOFI  loan and I closed that account within 2 years of getting it and I am also dinged because I dont have a loan outstanding.

My one and only oldest CC is 7 years and 7 months 

All other  6 CC are 3 years and 1 month old

I have over $110K in CL from the above cards with total UTI at 3% 

My Cap1 is the only  the single higest UTI at 35% all others are below 3%. That Cap 1 will be zeroed out by the end of the month. 

How is it I was able to get $31k on a business CC, but I cant get a personal loan for $31k on the same credit scores?

I agree. It's weird. I can spend six figures on my capital one spark no preset spending limit card but getting a 50k personal loan would be a no pretty fast even with good scores. 

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