There are times in life when we are faced with the need to make a large purchase. Sometimes these are desired purchases, while other times they are required. Since many of us don’t have a stash of extra cash, loans are the only option. People that have credit problems typically face more hurdles to making purchases. Home equity loans and credit cards are often not available to the credit challenged. Retirement accounts (i.e. 401k) are considered by some as a source of needed funds. Using hard earned retirement funds should be a funding source of last resort. You can end up paying a substantial portion of your withdrawal in fees and taxes. Use personal loans instead if you only need money for a brief period of time. More and more lenders are offering loans that cater to people with credit problems. You can find a list of finance companies by conducting an Internet search (i.e. borrowing money with bad credit). Keep in mind that these loans should be repaid timely due to their high interest rates. Failure to repay time in a timely manner can increase interest costs on the loan. If you cannot quickly repay the loan, consider putting off any purchases if possible. Consult with your retirement plan administrator regarding loan options for hardship.