Have loan for 4k with a co-signer and shitty interest rate. Borrow from my 401k?(No money loss, but doesn't show up on credit report) Take loan from bank/lender?(Money loss, but on report as a loan in my name only to show responsibility) Either loan will only be a 3 year term. When I bought my bike, I took a loan out on some of the cost instead of paying in full for the sole purpose of building my credit. Now that some time has passed, I don't exactly have the same type of cash laying around that I used to. My father is a co-signer on the loan, which currently has a pretty nasty interest rate. I've put off refinancing it to get a decent rate, but I'm gonna go ahead and do it now. The last time I checked my credit score was almost exactly one year ago and it was in the high 700's, so I've got high hopes for when I check it again. This doesn't stop me from wanting to build it even more for my future, especially since score isn't much without installments. It's going to be a three year loan and only for $4,000. So here is where I'm having a hard time deciding... Borrow from my 401k -$50 one time fee. -4.25% compounded interest rate. All interest is being paid directly back to myself. -Average profit from 401k lately has only been like 3.5%, so I won't exactly be suffering a major loss as of now on possible interest earned while money is temporarily withdrawn. -Only financial loss is the 50 bucks and what I mentioned right above this, which is subject to change. -DOES NOT SHOW ON MY CREDIT REPORT, therefore doesn't help my score/installments. Refinance through bank or lender -Probably a 7%-8% rate that of course I wont be paying back to myself. -SHOWS ON MY CREDIT REPORT, therefore helping my credit. -Almost certainly will cost me more in the long run. The biggest factor is as mentioned before, I want my credit to be the best it can so I wont have any limits in major life choices. Since my current loan is co-signed by my father, it would look great to show I was able to take care of one in my own name. As of now, I'm thinking of taking a loan through my bank or a lender, making payments for a year, then pay it off via a small 401k loan or from my savings. I know this is all cluster-fucked/run-on style, but it's the only way I can get my thoughts out sometimes. I'm sure there are plenty of necessary details left out, I'll do my best to check up on this during work tomorrow. So what do you guys think?