Terminology can get confusing with SUVs, but the GMC Terrain is technically a compact crossover.
To put that in context, a GMC Yukon (GMC’s full size SUV) is built with a body-on-frame construction. Essentially, this means the chassis is separately attached to the Yukon’s body rather than a single unit with it. The body can flex more freely as a result, which eases off-road wear and tear and increases towing capacity.
While you can still tow and off-road in a unibody-based crossover, it’s not quite as capable as the body-on-frame’s more truck-like build. Perhaps reflective of this: the 2022 GMC Yukon can tow up to 7,900 lbs whereas the 2022 GMC Terrain can only tow up to 1,500 lbs. Since you’re looking for a hauler and off-roader, the GMC Yukon would be a much better fit here.