Moving & Relocation Loans

Moving can be expensive. A loan can help.

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What are moving loans?

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 come in.

Moving loans 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.

Lenders determine your creditworthiness as a borrower by analyzing your credit score and debt-to-income ratio, among other factors.

4 moving loan options to cover your expenses

APR range Loan terms Minimum credit score
Earnest 5.99% to 17.24% 36 to 60 months 680
Best Egg 5.99% to 29.99% 36 or 60 months 640
SoFi 5.99% to 16.19% 24 to 84 months 680
Marcus by Goldman Sachs® 6.99% to 19.99% 36 to 72 months months Not specified

Moving loans: Pros and cons

PROS

  • Fixed interest rate and fixed monthly payments: With a moving loan, your monthly payments will stay constant across a set term — typically 12 months or longer, although shorter terms may be available.
  • Credit card APRs hover around 20%. Borrowers with good credit may qualify for a lower interest rate with a personal loan.
  • Potential for fast funding: Some lenders will deposit funds into your account within a day of loan approval.
  • No need for collateral: If you can’t pay back your loan, you won’t risk losing an asset to the lender.

CONS

  • You’ll pay interest on moving costs: To get the best deal on moving supplies and expenses, you’ll want to pay with cash.
  • Borrowing limits can be high: Even the smallest personal loans tend to start at around $1,000.
  • Borrowers with subprime credit scores may not qualify: Borrowers with good credit can qualify for competitive terms. But those with subprime credit will have a hard time getting good terms, if they are approved at all.
  • You may have to pay additional fees: On top of interest charges, you may be responsible for fees. Many lenders charge an origination fee, which is either deducted from your loan or added on top of your balance. It ranges from 1%-8% of your loan amount.

How to apply for moving loans

Getting a loan to move out is simple with LendingTree. Follow these steps:

  1. Research lenders: To get the best deal for you on a personal loan, you’ll want to find one from a reputable lender with the lowest possible APRs for your financial situation.
  2. Get pre-qualified: LendingTree lets you prequalify for offers from up to five lenders at once. You can also get preapproved for loans on the individual lender’s website.
  3. Choose your best offer: By shopping around for your lowest possible offered APR on LendingTree, you’re ensuring that you get your best price on a loan.
  4. Submit your application: Once you choose a lender, you’ll formally apply through them. You’ll need to submit information to confirm your income and employment status, such as pay stubs. The lender will then conduct a hard credit inquiry.
  5. Receive the funding you need. Many lenders can process your application within a day, meaning you could get funding quickly. You’ll repay the loan in fixed monthly payments.

Can you borrow moving loans with bad credit?

Moving loans are a type of unsecured personal loan. Unsecured loans don’t require collateral, which means that lenders rely heavily on your credit history to make lending decisions. Because of this, it may be difficult to secure good terms on a moving loan if you have bad credit.

You could try to improve your credit score before applying for a loan. If you’re in a pinch, some lenders may work to get you a moving loan for bad credit. However, you should expect high interest rates as the lender takes on more risk in lending you money.

A good option for a bad credit moving loan is to work with your local credit union. These member-owned institutions may be more flexible in their loan requirements and have more favorable terms compared to banks.

4 moving loan alternatives

  Pay with a credit card

If you want to pay for your moving expenses with a credit card, it’s possible. To avoid paying interest, make sure you pay the entire statement balance by the time the bill is due. You could also look for a credit card with an introductory 0% APR period — that way, you can avoid paying interest as long as you pay off the card by the time the period expires.

  Borrow from friends and family

A small no-interest loan from family never hurt anyone — as long as it’s paid back in full in a timely fashion. If you have the means to borrow from friends or family, then go for it. Just remember to borrow responsibly so you don’t tarnish any relationships.

  Budget for months in advance

Chances are, you’ll have a few months between the time you secure the lease or mortgage for your new place and when you actually need to move. Put that time to good use by developing a tighter budget and saving extra money if you can.

  Sell some of your old furniture

Downsizing or upgrading your furniture? Sell any furniture you don’t want to bring with you and put that money toward moving expenses. You can consign furniture at some antique shops or sell through a third-party marketplace like Nextdoor or Facebook. You may also sell other belongings you don’t want to take with you to your new home.