Whether you’re moving to a new neighborhood or a different state, the process can be stressful to plan out and expensive.
As you calculate your moving costs, you may want to consider a moving loan to help cover expenses like packing materials, a moving truck, gas, and help from professional movers.
Several moving loan options exist, but in this article, we’re going to compare four of the best moving loans. We’ll outline how to carefully weigh your options and how to apply.
A moving loan, also known as a relocation loan, is a type of personal loan to cover a variety of expenses, including transportation, furniture and new items for your home, as well as professional movers.
A moving service alone can cost thousands of dollars, and if you don’t want to drain your savings or put expenses on high-interest credit cards, a moving loan could be a great option.
Like all personal loans, moving loans have specific terms and interest rates based on your credit and eligibility requirements.
Moving loans can be found in a few different places, but one of the easiest ways is to consider an online lender that offers relocation loans to individuals. Online lenders may be able to pre-approve you for a moving loan and can streamline the process of applying and getting your loan funds.
Below are four Credible partner lenders to consider for a relocation loan.
The requirements for a moving loan can vary by lender. In general, you should expect to meet some of the following criteria to be approved for a loan.
To get a moving loan, follow these five steps:
1. Compare loan offers and get prequalified. Prequalifying for a loan can often be done online and will allow you to view different loan rates and offers based on your results. Since lenders usually only perform a soft credit pull, prequalifying won’t impact your credit score, making it a great way to shop around to determine which loan option is best for you.
2. Choose a loan option and apply. The application form will require more details about your financial situation and needs for the loan. At this point, the lender will check your credit, resulting in a hard inquiry — which will ding your score temporarily. You’ll also need to submit supporting documentation, such as a copy of your ID and proof of income, like recent pay stubs.
3. Wait for processing. Once your loan application is submitted, it will go through underwriting and a review phase. At this time, you may be asked to submit more supporting documentation as the lender will want to verify your identity, income, and bank account details.
4. Review loan terms and sign an agreement. If your loan application is approved, the lender will prepare an agreement that shows the total amount you’re borrowing and the terms. Be sure to carefully review the agreement and ask questions if you’re unclear on anything.
5. Sign the loan agreement and receive your loan funds. If the loan agreement makes sense, you can sign it and receive your loan funds. The time it takes to receive your funds will vary depending on the lender. On average, you should receive your money within 2 to 5 business days.
You may want to consider getting a personal loan if you’re moving farther away and don’t have relocation benefits through your job. If you’re faced with expenses like storage or shipping fees and gas for a long-distance trip, a moving loan could come in handy.
Review your finances to see what you’d need help with to determine how much you should borrow with a moving loan. Also, consider your credit score since you can probably get better loan terms with a higher score.
A moving loan may not be the best option for everyone. If you find that moving costs are adding up, consider the following options:
If you’re staying with the same company when you move, inquire about their relocation packages. See what you need to qualify and what options are available. If your employer doesn’t officially offer relocation benefits, you may still be able to negotiate some financial help.
Gather quotes for your moving expenses, and ask for help with a portion of the cost. You can also mention any benefits to your employer, such as the fact that you’ll be able to settle in quicker and return to work earlier.
It doesn’t hurt to ask friends and family to borrow money for your move. Or perhaps in place of a leaving gift, you can ask that loved ones make a small donation to your moving costs.
If those close to you aren’t able to help financially, you can always ask if they’d be willing to help with other tasks such as packing, driving the moving truck, or even helping load and unload the truck. This can help you save money on moving company fees.
If your moving date is several months or even a year in the future, start saving money as soon as possible. List out all your potential costs and come up with an amount you can save each paycheck or each month.
Consider putting this money in a high-yield savings account to help pay for your expenses when the time comes to leave.
If you have good credit and don’t need to borrow much, you can try using a credit card with a 0% APR promotional offer to cover moving costs.
This type of card may give you anywhere from 12 to 21 months of 0% interest so you can use this time to repay the balance while avoiding personal loan fees. But it’s crucial to pay off the balance before the regular (and usually quite high) interest kicks in.