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Do 401k loans go on your credit report?
Answer: No, a 401k loan won’t show up on your credit report. Although 401(k) loans are not reported to credit reporting agencies, lenders may inquire about them if you apply for a mortgage, in which case they will count the loan as debt.
What is the downside of taking a loan from 401k?
A 401(k) loan has some key disadvantages, however. Although you’ll repay yourself, a significant drawback is that you’re continuing to withdraw funds from your retirement account that are growing tax-free. And the less money you have in your plan, the less money will increase in value over time.
Do lenders care about 401k loans?
Generally, no. Mortgage lenders may acknowledge the 401(k) loan you have, but they may not treat it the same as a debt as they would treat credit card or loan payments. This is due to the fact that you are repaying yourself, not a lender or creditor.