You raise good points, but really I think it depends on the terms of the 401k loan. You’d have to read the plan document to see what it says about the interest. I was more so saying don’t do a 401k loan because of potential penalties if you don’t repay it back in a certain amount of time, mandatory holding periods must be reached or there’s required 20% withholding, etc.

I was thinking of other factors too like building / rebuilding credit, how much of an account balance is in there vs how much is in credit card debt