I agree with JBL. Buying an expensive car with a 14.4% loan is not a good way to re-establish credit.
I would not borrow from my 401k. I would just aggressively try to pay off the car -- refinance to a lower rate if you can. How your 401k has performed recently is not relevant. If anything, taking money out of your 401k while its down is the worst time to do it.
Don't believe the pre-approval number. What the mortgage company says someone can afford is usually a lot more than they really should be borrowing. I would hold off on buying a house for now.
Last edited by sweeps : 03-31-2008 at 06:57 PM.
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