Question by Panamana Nate: If I pay off my credit cards, how much will it help my credit score?
If I pay off my credit card debt ($ 65,000) using money from my retirement, how much will it raise my credit score? Will it raise it enough so I will be able to refinance my mortgage?
Best answer:
Answer by Huntsman
I know this is a joke – but I’ll answer anyway.
Yes – you will see an amazing improment on your credit score.
Up to a 100 point increase – easily
You are not retired yet.
For one thing you can’t just take out money from a 401K while you are still employed
If you take a loan, the finance company will see this loan when they check right before giving you the mortgage
If you lose your job- this loan is immedately payable back
Or you can expect to pay over 40% in taxes and penalties.
The loan is payable back in only 5 years
Next time state your age and if your 401K is through your current employer.
You are making some serious, very serious financial mistakes here
Add your own answer in the comments!