Where can I get a legitimate personal loan with poor credit? Also can you use your retirement count as collateral? I need a loan for 2 weeks, where should I go?
If your retirement account is a 401(k), you may be able to get a loan from your account. See the IRS documents 401(k) Resource Guide - Plan Participants - General Distribution Rules and Participant Loans in 401(k) Plans for details. Your 401(k) administrator will help you with the necessary forms if your plan allows loans.
Avoid at all costs the store fronts that blight lower-income neighborhoods offering payday loans, signature loans, and title loans. The interest rates these operations offer are extremely high, and according to many Bills.com readers, the collections practices are aggressive and illegal under federal law. If you do borrow money from one of these operations, take your time to understand the terms and conditions of the loan completely, and do not sign any contract you do not understand.
You have alternatives to payday and related lenders. According to the Federal Trade Commission document Payday Loans Equal Very Costly Cash: Consumers Urged to Consider the Alternatives, consumers have six alternatives to high-priced loans:
See the Bills.com resource Peer-to-Peer Loan to learn if you qualify for a loan from a bank alternative.
You mentioned using your retirement account a collateral. Although it is true your retirement account is an asset, retirement accounts are not seen as collateral generally speaking. There are two reasons for this. First, I have not seen a retirement account used as security for a loan. That is not to say that no retirement account has ever been used to secure a loan, I am saying it is not common practice. Second, retirement accounts are exempt in bankruptcy proceedings, generally speaking, which makes them poor candidates to secure a loan.
I hope this information helps you Find. Learn & Save.