Comments on: if i borrow from my 401k does that build credit like a loan? http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/ Wed, 17 Aug 2011 05:23:38 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Charlie D http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/comment-page-1/#comment-4624 Charlie D Sun, 30 May 2010 13:44:38 +0000 http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/#comment-4624 Never borrow from a 401K plan. You short growth opportunity. Also, proof that you pay rent, car payment, etc... on time is good enough to boost your credit score. Never borrow from a 401K plan. You short growth opportunity. Also, proof that you pay rent, car payment, etc… on time is good enough to boost your credit score.

]]> By: Michael H http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/comment-page-1/#comment-4623 Michael H Thu, 27 May 2010 07:21:57 +0000 http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/#comment-4623 Apply within your company, ask the Finance department. In most cases you can borrow up to 50 grand or 50% of the balance, whichever is smaller. Advantages: quick cash, no credit approval process, low interest rate, and you avoid 10% penalties if you were to withdraw(income taxes) Disadvantages: slowing growth of retirement fund, consider your age. If you're somewhat young, go for it, if you have a stable predictable income. Also, payback is through payroll deduction, consider smaller future income(net not gross) Use this method as a last resort, it will not build credit...in fact you're probably better off with a regular bank loan. Apply within your company, ask the Finance department.
In most cases you can borrow up to 50 grand or 50% of the balance, whichever is smaller.

Advantages: quick cash, no credit approval process, low interest rate, and you avoid 10% penalties if you were to withdraw(income taxes)
Disadvantages: slowing growth of retirement fund, consider your age. If you’re somewhat young, go for it, if you have a stable predictable income. Also, payback is through payroll deduction, consider smaller future income(net not gross)

Use this method as a last resort, it will not build credit…in fact you’re probably better off with a regular bank loan.

]]> By: c q http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/comment-page-1/#comment-4622 c q Wed, 26 May 2010 03:50:35 +0000 http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/#comment-4622 No, No. You will have to pay it back with interest, plus you get hit twice, once with a penalty for borrowing and second you have to pay taxes on it like earned income. A loan neither of the last two apply. Don't do it. No, No. You will have to pay it back with interest, plus you get hit twice, once with a penalty for borrowing and second you have to pay taxes on it like earned income. A loan neither of the last two apply. Don’t do it.

]]> By: Brian G http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/comment-page-1/#comment-4621 Brian G Mon, 24 May 2010 23:54:51 +0000 http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/#comment-4621 No, it doesn't affect your credit in any way. You are just borrowing money from yourself and paying yourself back, usually with interest. Whether you should borrow it is widely debated. If you are making a good return on your investment, you are losing that increase in the value until the loan is paid back. A regular loan may cost you less if you can get an interest rate lower than what you are making on the 401K, plus it will help build your credit. No, it doesn’t affect your credit in any way. You are just borrowing money from yourself and paying yourself back, usually with interest. Whether you should borrow it is widely debated. If you are making a good return on your investment, you are losing that increase in the value until the loan is paid back. A regular loan may cost you less if you can get an interest rate lower than what you are making on the 401K, plus it will help build your credit.

]]> By: CommonCents http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/comment-page-1/#comment-4620 CommonCents Sun, 23 May 2010 00:47:51 +0000 http://raiseyourcreditnow.com/if-i-borrow-from-my-401k-does-that-build-credit-like-a-loan/#comment-4620 It does not help you credit at all, and you have to pay it back by deductions from your paycheck. Not a good idea unless you are desperate. It does not help you credit at all, and you have to pay it back by deductions from your paycheck.
Not a good idea unless you are desperate.

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