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Relocation 101: Should You Get A Personal Loan For Moving Expenses?

Should you get a personal loan for moving expenses or not? Get to know more first about what moving loan is all about, the benefits of getting one, and then decide later on if it’s worth getting one.

should you get a personal loan for moving expenses

Oftentimes, people who are moving from one place to another are torn between getting a loan or not, which is valid given the fact that there’d be changes in their personal details. So, to enlighten you, we’re going to share some of the most important details you should know when getting a loan and moving out.

But, first thing first –

According to, the average cost of a local move is $1,250, while moving in a long-distance (a distance of 1,000 miles) would normally cost an average of $4,890. Based on the site, these estimates were based on a “2 – 3 bedroom move of approximately 7,500 pounds.”


You see, this data only shows that moving from one place to another – regardless of distance – comes with a cost, and unless you have saved enough for the move, then you should get a personal loan for moving expenses (to spare yourself from financial troubles).

However, just like when getting other types of loans, make sure to do a self-assessment first before you even apply for a personal loan for moving expenses or also known as “moving loan”. This way, you get to check whether there’s really a need to borrow money or if you can afford to pay off a loan on a monthly (or depending on what’s agreed on) basis.

So, to help you decipher if you indeed need a personal loan for your moving expenses, we’re going to share with the following information:

  • What is a moving loan?
  • What are the factors affecting your moving cost?
  • What are the pros and cons of a moving loan?
  • How to apply for a moving loan?
  • Where to apply for a moving loan?
  • What are other alternatives to using a personal loan for moving expenses?


Should you get a personal loan for moving expenses?

This is a question that is commonly asked people who are moving out either to pursue a new career or new job or simply for a change of scenery.

Let’s face it. The reality is — when moving from one place to another, most often than not, it requires cost. Well, there are costs, which includes travel expenses, packing services, moving add-ons, storage, etc. Later on, we are going to share with you the factors that usually affect moving costs.

As we have said earlier, unless you have saved up for the moving expenses, then there’s no problem at all. Otherwise, you will need to borrow money to ensure you got all the moving costs covered.

Just in case you are not aware, there is such a thing called, moving loan or also known as relocation loan.

A moving loan basically refers to a personal loan that is used or is intended to cover moving or relocation expenses.

In most cases, a moving loan is an unsecured personal loan, which means it does not require collateral to be able to get approved for the loan. Instead, lenders look into other several factors (one of them is your credit score) to decide whether the borrower qualifies for a moving loan or not.

A moving loan can be used for various purposes related to your move. It may be used for renting a moving truck, buying packaging supplies, hiring professional movers, getting insurance, as well as staying in hotels while on the process of moving your things. In addition, you can also use the loan to pay for move-in costs such as your security deposit, as well as first and last month’s rent.

How much you can borrow depends on the lender. But normally, lenders will base it on your credit, the state where you live in, as well as other factors like your ability to pay off the loan.

A moving loan can be very helpful especially for individuals who are just starting and have barely enough funds to cover moving expenses.

Meanwhile, if you want to know more about getting a personal loan per se, here’s an on-point video blog from BeatTheBush about the said topic:


For you to understand fully if there’s a need to apply for a personal loan for your moving expenses, we are sharing with you some of the factors that actually affect your moving cost.

To ensure you have enough funds on hand, make sure to factor in all possible expenses when calculating your moving costs.

According to, here are some of the factors that affect moving expenses:

  • Size of Your Move – Do you have a lot of stuff to move to your new place? If you have a lot of things to move with you to your new place, then that means a longer time to complete the move. Also, it may mean heavier shipment of belongings, which in turn costs a lot. To ensure you spend less, make sure to bring things or belongings only that are essential to you, because the more things you have to move, the more expensive it can get.
  • Travel Fees – Travel fees include fuel and labor costs. The amount of travel fee will depend on how long or short the distance is from point A to B.
  • Moving Supplies – Moving supplies include cardboard boxes, plastic bins, bubble wrap, packing paper, and any other supplies needed for the move. You will need all these to ensure that your things are well-packed — especially if the destination is quite far.
  • Packing Services – Unless you have the energy to pack everything, then you wouldn’t be needing the help of packing services. However, if you have so much stuff to move, and they’re beyond what you can, then you have to include packing services in your costing. Normally, this costs a few hundred bucks or even more depending on the amount of work to be done.
  • Storage – Some people would rather choose to have a moving company hold or store all their belongings before, during, or after a move. This usually happens when the move is complicated. So, if you think you will need a third party company for storage purposes, then you got to include this in your costing. Please take note though that storage rates vary from one moving company to another. So, make sure to ask around first and compare prices before you settle for one.
  • Moving Date – When you are going to move is just as important as how you are going to move from your point of origin to your new place. When you are moving can affect the price dramatically. If you move on a weekend or during peak season for that matter, expect the price to be higher as compared to a week-day or an off-season move.
  • Moving Add-Ons – Another factor that adds to the cost of your move is moving add-ons. This refers to add-on services (like disassembling and reassembling furniture, moving of specialty items, as well as moving supplies such as a stretch wrap, felt pads, and mattress bags) that you are going to avail.
  • Liability and Valuation Coverage – Normally, when using a moving company, you will most likely need to purchase liability coverage. This gives you and your things a certain level of protection from possible damages during the move. Most moving companies in the country offer multiple levels of protection, which include Basic Release Value Protection and Full Value Protection. You may also consider buying additional moving insurance from a third-party provider if you want to.


So, should you get a personal loan for moving expenses? After what we have shared with you so far, are you convinced you need one?

To help you make a better decision with regards to getting a moving loan, here is our list of some of the pros and cons of a moving loan:


  • Low-Interest Rates – Since a moving loan is a personal loan, expect to have better interest rates as compared to using credit cards. This is particularly true especially if you have a good credit standing.
  • No Collateral Needed – Personal loans are usually unsecured loans, which means you do not need collateral to qualify for the loan. So, no need to worry about needing a car or a property to be your guarantee.
  • Varying Loan Terms – As usual, personal loans offer repayment terms that range from 12 to 84 months. You can choose a repayment term that best suits your financial capacity.
  • Quick Application Process – There are some lenders that approve personal loans and fund a personal loan within just a week or even less. Lenders would normally deposit it directly into your bank account. Make sure, though, to always read the fine print before agreeing to the loan.
  • Easier to Budget – Since personal loans are usually installment loans that come with a fixed monthly payment schedule, this makes it easier for you to budget as you already know how much you need to pay.
  • Large Loans – As compared to credit cards, personal loans can fund an expensive move. Normally, personal loans can cater to loans of up to $75,000.


  • Potentially High Fees – There are lenders that offer personal loans that charge fees such as origination fee, which refers to the cost of processing your application, as well as in distributing the funds. An origination fee is a percentage of your total loan amount that normally ranges between 1% and 8%, or in some cases, even more. Another fee that may be charged to you is the prepayment penalty, which is a cost charged to the borrower if he or she pays off the loan ahead of the maturity date.
  • High-Interest Rate – Since personal loans are unsecured loans, lenders charge a higher interest rate as compared to secured loans. Also, a higher interest rate may be charged to you if you have a poor credit history.
  • Long-Term Debt – It’s a loan, which means you are likely to be paying it off even after you have already settled in your new place. Personal loans can extend up five or seven years.
  • Financial Consequences – A financial consequence usually arise when the borrower missed payments. If a borrower does not pay the loan as agreed, his or her credit could be negatively impacted.


Moving a loan is a personal loan. Thus, the process, as well as the requirements in availing it is pretty much the same.

As a general rule, borrowers with strong or excellent credit have the best chances of getting approved for a moving loan. Requirements such as credit score as well as income vary from one lender to another. So, it’s always best to check with your prospected lender first.

Building a good credit and improving your debt-to-income ratio are the best ways to boost your chances of getting moving loan approval from the lender.

Meanwhile, for online lenders, most of them allow you to pre-qualify to check your rate and terms before you commit to a personal loan. The pre-qualifying process allows you to compare rates from different lenders. At the same time, lets you find a loan that gives you the amount of money need plus a payment scheme that you can afford.


There are three major places where you can apply for a moving loan. These are banks, credit unions, as well as online lenders.

Let’s take a look at each and how they fair when it comes to moving loans.


Normally, when we talk about money, in this case, a loan, the first thing that comes to mind is to get it from a bank. Banks offer personal loans to help pay moving costs or any expenses for that matter.

Getting a personal loan for moving expenses from the bank is easy if you have an excellent banking history and you have built a good credit as well.

For as long as you have these, you can definitely qualify for a lower rate on a personal loan. In some cases, banks offer relationship discounts on particular loan rates.

In terms of speed, it may take a while for banks to process loans, which means if you need the money right away, it may not be feasible.


Credit unions’ process when it comes to personal loan applications is pretty much the same as banks.

As with the requirements, they’re also the same. Although, unlike banks, those with not so good credit may have a better chance of getting a loan from credit unions.

Since credit unions are member-based, this means you have to apply to be a member first before you can avail of its products and services, including personal loans for moving expenses.

Just like banks, some credit unions may also take a few days to process loan applications.

Also, both banks and credit unions may require you to offer some kind of collateral for a personal loan if you have a poor credit history.


There are a lot of online lenders nowadays. Too many choose from, actually.

Online lenders are the best choice if you need the money right away. It’s actually the most appealing to those looking for personal loans for moving expenses because…

First, online lenders offer personal loans to a wide range of credit backgrounds. Whether you have a poor or excellent credit history, you have a chance of getting a loan.

Second, personal loans from online lenders are usually unsecured, which means you do not need collateral.

Third, online lenders are generous in terms of borrowing amount. In fact, some of them can lend up to $100,000, but of course, that depends on your qualifications.

Fourth, interest rates among online lenders tend to be competitive with what banks and credit unions offer.

Lastly, getting a personal loan for moving expenses through online lenders can be fast and convenient. Some online lenders provide loan approval in just a few minutes after the application has been submitted, and funds are provided in about one to two business days.

You see, you have several options to choose from. Once you have decided to borrow money, you just got to look into your qualifications to know whether a bank, credit union or an online lender is the best choice for you.


If you think getting a personal loan for moving expenses is not for you, well, there’s nothing to worry about as there are other alternatives that you may consider.

Here are some of them:

Credit Cards

Statistics show that an average American owns two to three credit cards. If you are one of them, then it makes sense to actually pay for relocation or moving expenses using your credit card as long as your credit limit can support the costs.

The downside of using your credit card though is that most of the time, the interest rate is higher as compared to a personal loan.

Saving Up

Of course, the best way to fund your relocation expenses is by saving money for it. By saving for your moving expenses, you get to save from paying interest rates as well.

Also, it keeps you away from obligations like paying off on a month to month basis (or whatever payment scheme you have agreed with the lender).

Peer-to-Peer Lenders

Peer-to-peer lending can help you to borrow directly from individual lenders who fund small loans. The investors may opt to fund just a part of a loan or multiple loans. Just the same, a borrower can also get funds from either just one lender or multiple lenders.

P2P loans can come with fees and in some cases high-interest rates though especially if your credit is not strong enough.

Employer Relocation Package

If the purpose of relocation is to work, then consider asking your employer if they are willing to help you with your moving expenses. You may also consider negotiating relocation assistance to be part of your compensation package. That way, you are assured of funds for your move.

Family and Friends

You may also consider checking out your family and friends. You never know — Some of them may be willing to help you by lending you the funds you need. Some may add interest, while others may not do it at all.


Moving from one place to another comes with a cost. That is why it is important to list down all your moving expenses so you get to gauge if you have enough or if you need to borrow funds from a lender.

So, should you get a personal loan for moving expenses? The answer to that would be – it depends on your needs. If you think you do not have enough money or savings to cover the cost, then, go ahead and apply for a personal loan to fund your relocation expenses.

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