401(k) loans are attractive because you don’t need to have good credit, you enjoy low interest rates, and you pay interest to yourself instead of a creditor.
Taking a 401(k) loan may make sense in some situations, but if you don’t know what you’re getting yourself into, it could cost you more than you bargained for.
Specifically, a 401(k) loan can impact the quality of your retirement, have negative tax consequences, and cost you money and opportunity.
