2007-07-26 09:33:13 · 3 answers · asked by musiclover8659 2 in Business & Finance ➔ Credit
Not only will it not help your credit score, but it will actually hurt you in other ways in the long run since the money you "borrow" from your 401k will not be earning you interest as you pay it back.
If money is tight you may want to decrease you contribution to your 401k so you can keep more take home pay now without impacting your accumulated retirement savings.
If your goal is to improve your credit score, the best thing to do is to pay your bills as quickly as possible. It is also important to keep a close eye on what may be hurting your credit by signing up for a credit report monitoring service. They are available from all the major credit reporting agencies (Experian, Equifax, TransUnion).
This site has some good info on each program:
http://consumercompare.org/creditreport/
I hope this is helpful!
2007-07-26 11:10:05 · answer #1 · answered by ConsumerCompare 2 · 0⤊ 0⤋
No. Your 401k is not a merchant who reports to credit bureaus. It's also not a loan that has to be repaid; it just reduces your benefit if you die before repayment.
2007-07-26 16:37:40 · answer #2 · answered by Ted 7 · 0⤊ 0⤋
Sorry, no. You get no credit for borrowing from yourself.
2007-07-26 17:22:57 · answer #3 · answered by ? 7 · 0⤊ 0⤋