Asking because I am trying to raise a bit of cash to cover unexpected costs when buying a home. Wondering if I am going to end up ruining my credit for this loan
Does taking a TSP loan show up on your credit at all?
byu/BBQXenomorph inMilitaryFinance
Posted by BBQXenomorph
6 Comments
Hmmm. This is a good question, and I don’t have an answer, but I will offer that this is rarely a good option.
A TSP loan takes your money “out of the market.” So the interest rate is only four percent or so, but the money no longer grows at the current growth rate. In my opinion, you can think of the effective rate as being closer to 13%.
I would look and see if your service has a mutual assistance program like CGMA for the Coast Guard, or if you have better options for this debt.
no
No, it’s basically a loan to yourself against your retirement. Tsp is just facilitating it. The interest you are paying is going to you except the small fee in the origination.
No
Don’t do it.
No, it does not. Recommend making that a last resort