Thinking of a 401(k) Loan? Here's Why You May Want to Reconsider.
It may seem like a good way to borrow, but it could easily backfire.
Overview
If you're short on cash and need money in a pinch, borrowing from your 401(k) might seem like an easy solution. After all, you're borrowing from yourself, which means the interest you pay on your loan goes back into your own retirement account. That can make a 401(k) loan sound much more appealing than relying on a credit card or personal loan.
When you apply for a regular loan, your lender typically performs a credit check. If your credit score isn't in the best shape, it could stop you from being able to borrow the money you need.
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Details
Source
Originally published at www.fool.com.
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