Putting down roots in a new place can be an exciting time in your life, but that excitement can quickly become overshadowed once you consider how expensive it is to pay for a move. Between renting a truck and putting down a security deposit, you might be strapped for cash. That’s where moving loans — also known as relocation loans — come in handy.
Loans for moving are simply personal loans that are used to cover moving expenses. Personal loans are unsecured, meaning they don’t require collateral like your car or home. They also come with fixed interest rates and repayment terms, which means you’ll always know how much you owe and when you can expect to be out of debt.
Moving and relocation loans can be used for…
- Storage costs before a move
- Supplies such as boxes and tape
- Renting a van or truck (and filling its gas tank)
- Hiring professional movers
- New furnishings
- Security deposit or first and last month’s dues for a rented home
- Staying in a hotel or other temporary living situation before moving in
Lenders determine your creditworthiness as a borrower by analyzing your credit score and debt-to-income ratio, among other factors.