Ask Me Help Desk - Personal loan against my 401 with bad credit

Quote:

Originally Posted by elayneboss2

my company does not give loans on my 401K..my current statement shows I have almost 11,000 invested...I have really bad credit and no bank or fiance company will approve ..can I borrow against my 401 as collateral....I need a $3,000 loan and where do you recommend i go to..been on same job for 19 years

BORROWING FROM YOUR 401K IS NEVER A GOOD THING. If your not over 59 and you have to pay penalties of 20% if you borrow and than at the end of the year you get taxed as well since it will count as extra income. So borrowing on your 401 k by all financial experts is a no no. but lets help the present problem. No credit or bad credit and need a small amount of 3,000 dollar.not a bad situation at all. Here is what I did with the same circumstance and now have amass savings of over 100 thousand in less than 2 yrs and excellent credit rating of 800 in less than a year. All by trial and error. Get any money you have and open a certificate of deposit, make sure you can borrow 100 percent on it or at least 90% combine any money with your paycheck from family or friends or etc: when you borrow on yourself the payment back to you is very low. If you extended for the maximin time they give you. Also by borrowing the money back usually on the same day. Note all my borrowing has been on the same day. On the same day borrowing you pay back the person that help you put the money to open the c d. if you can get a rate of 3 to 4 or more % for 5 to 7 yrs than great, when in these times of people losing money 4% doesn't look to bad. But the way it helps your credit paying yourself and also once you pay yourself you can rebore again and again. The critics say how about inflation. Well I never saved in 50 yrs 100 hundred thousand much less 1 thousand and now in less than 2 yrs with this system of my own I have amass an excellent credit rating as my car was refinance from 17% to 5 % and etc: on many other bills. Plus the relationship with the credit union or bank better a credit union they are more flexible and dependable to help. Will take a small risk on your collateral account. More info let me know: the bottom line 100 thousand this year or 100 thousand saved in any years is guess what still 100 thousand that you never had plus the dividends the credit union pays you in my case over 14 thousand for every 50 thousand I put.