Moving can be an exciting experience, but unfortunately, it is also a stressful and dear process. Average relocation costs vary from less than $200 up to $10,000, depending on your home size, based on Forbes. You might be able to alleviate some of the financial stress with moving loans.
Using an unsecured loan to pay for moving expenses can help to eliminate strain on your savings and assist you to budget for the next chapter in your life. Here•s everything you need to learn about moving loans.
- What is a moving loan?
- How use a moving loan
- Personal loans for moving costs
- How to try to get a moving loan
- Pros and cons of moving loans
- Alternatives to moving loans
What's a moving loan?
A moving loan is really a personal bank loan that you use to cover moving expenses. As these loans are usually unsecured, you won•t be concerned about putting up collateral for that loan.
Many lenders offer personal loans to cover moving costs. Lenders will typically offer you a set loan amount to be paid back throughout a predetermined loan period in a pre-approved rate of interest. For instance, you may be approved for a three-year, $5,000 personal bank loan with an intention rate of 6%. As the loan matures, you•ll be asked to make monthly payments before the total amount borrowed, plus interest, is repaid.
How use a moving loan
Before applying for a moving loan, it•s vital that you know very well what you are able to and can•t apply it. This loan covers expenses directly related to your relocation, which may involve everything from packing and transporting your possessions to personally moving large items, much like your vehicle, across long distances. You should use the loan to pay for costs including:
- Hiring movers
- Renting a moving truck
- Purchasing packing materials like boxes, tape and packing peanuts
- Covering travel costs for any long-distance move, for example hotel stays, meals and gas
Personal loans for moving costs
To find the right personal loan to cover your expenses, you•ll first need to find out the personal bank loan lender that fits your specific needs. The next five lenders are PayPasser partners that provide moving loans.
Avant offers fast funding, that makes it a great choice if you want to cover unexpected moving expenses as soon as possible.
- Loan amounts: $2,000 to $35,000
- Loan terms: 2 to 5 years
- Minimum credit score: 550
- Loan funding time: As soon because the next business day
- Best for: Borrowers with bad credit
Best Egg offers great rates to qualified borrowers.
- Loan amounts: $2,000 to $50,000
- Loan terms: Two to 5 years
- Minimum credit score: 600
- Loan funding time: As soon as one to three working days after successful verification
- Best for: Borrowers with fair credit
LendingClub offers personal loans as small as $1,000, that is ideal if you only need a small amount to cover relocation expenses.
- Loan amounts: $1,000 to $40,000
- Loan terms: Three or five years
- Minimum credit rating: 600
- Loan funding time: As soon as 48 hours
- Best for: Smaller loan amounts
Marcus offers a discount if you enroll in autopay, which cuts down on the overall cost of your loan.
- Loan amounts: $3,500 to $40,000
- Loan terms: Three to six years
- Minimum credit rating: 660
- Loan funding time: As little as three days
- Best for: Borrowers with good credit
Upstart may be a wise decision should you don•t have an extensive credit rating.
- Loan amounts: $1,000 to $50,000
- Loan terms: Three to five years
- Minimum credit rating: 580
- Loan funding time: As soon as one business day
- Best for: Borrowers with limited credit histories
How to try to get a moving loan
Before you apply for any personal loan for moving expenses, take a moment to examine your options to be able to choose the loan that works best for your budget, needs and credit rating. Follow these four steps when trying to get a moving loan:
- Determine just how much you will need to borrow. Before investigating personal loan options, calculate how much you will need to borrow. You can know for sure amount by estimating just how much a moving truck, movers, boxes and moving supplies will definitely cost.
- Compare rates based on your eligibility. Many lending companies offer moving loans with assorted rates of interest. Your credit rating and credit history will affect the rate a lender provides you with, whatever the amount borrowed. Compare other important factors, like repayment terms, too.
- Don't forget to consider fees into account. While a loan's rate can significantly impact your overall loan expenses, consider all relevant fees, too. For instance, some lenders charge an origination fee for processing the loan. Looking at a loan's APR, or apr, can give you a better idea of the loan's true costs since APR generally includes fees along with other loan-related charges.
- Apply for that loan. Once you've identified the borrowed funds and lender that most closely fits your needs, you need to apply for the borrowed funds. Be sure you have all required documentation whenever you apply to ensure that you can secure the very best rate offered at time.
With PayPasser, you can easily compare personal bank loan rates from multiple lenders in one place.
Pros and cons of moving loans
Securing a relocation loan has upsides and drawbacks. Just like any major financial decision, it•s vital that you weigh the pros and cons of a personal bank loan before using one to pay for your moving costs.
- Diverse options – Whether you need a bit to fund a big change of apartments or perhaps a larger sum to facilitate a cross-country move, there's likely a loan that suits your particular situation.
- Fast funding – Personal loans help you get money quickly, often even the same day are applying.
- Lower rates than credit cards – Based on your credit, lenders offer an APR that's less than credit cards, meaning you'll pay less interest.
- Additional expenses beyond the expected price of moving – Utilizing a personal bank loan to cover your relocation will ultimately increase your overall expenses. Even minimal lender fees and low interest rates can add up with time, resulting in the total cost from the proceed to exceed your original estimate.
- No treatments for fees and APRs – APRs and loan fees change from bank to bank. Though your credit rating may lower your overall expenses, the lender has final discretion which fees and rate of interest the loan is susceptible to.
- Not all borrowers qualify – One significant disadvantage to counting on unsecured loans to pay for the cost of moving is that not all borrowers will be able to secure a loan. Factors such as credit rating and monthly income can prevent you from getting approved if you don't possess a cosigner with higher or excellent credit.
Alternatives to moving loans
Personal loans are only one way to fund moving. Many people may would rather use a loan to partially cover moving expenses, while some might be able to fund their relocation through other methods. Here are four alternatives to getting a moving loan:
- Open a credit card with a 0% APR incentive. Some credit cards come with 0% APR introductory offers. Depending on the length of the offer, you may choose to repay your moving expenses without earning interest on the balance. But if you don't remove the full balance before the promotional period ends, you'll start accruing interest at the card's regular rate, which might substantially improve your overall expenses in the long run. And you will generally need good credit to qualify for one of these cards.
- Sell your old belongings. If you intend to get rid of any pieces of furniture, clothing or tools prior to your move, try selling them, then use the extra cash to purchase new moving boxes or rent a moving truck.
- Dip to your savings. One of the most straightforward methods to fund your move is to pay in cash. If possible, you are able to allocate part of your savings to fund the move, making sure to help keep enough inside your account for any unexpected expenses that could arise. Opening a high-yield checking account now can help you earn more interest to finance moving in the future.
- Ask family or friends for help. Close members of the family or friends may be prepared to loan you money or purchase certain expenses as a gift. It is really an interest-free option that could work well for those who have a bad credit score and don't qualify for a loan. Try not to accept loans or gifts if you believe it'll strain your relationship.
If you•re ready to find a moving loan, visit PayPasser to check personal loan rates from various lenders in minutes.