Cash 1 Blog

Financial Tips & Guides
Moving loans could help you cover moving expenses

Thinking About Moving? Here’s How To Get Funding for Your Relocation

Updated on May 7, 2024


Moving to a new home can be an exciting yet expensive endeavor. Whether you're relocating for a job, personal reasons, or a new adventure, the costs associated with moving can quickly add up. From hiring movers, security deposits to purchasing packing supplies, relocation costs can be significant. This is where moving loans or relocation loans can come in handy. In this comprehensive guide, we'll explore moving loans, how they work, and how you can secure funding for your relocation.

What is a Moving Loan?

A moving loan is an unsecured personal loan designed to cover the expenses of relocating from one place to another. These loans can be used for moving-related costs, including hiring professional movers, renting a moving truck, purchasing packing supplies, and even covering temporary lodging expenses.

How Do Moving Loans Work?

Moving loans typically work like other personal loans. You apply for a loan from a lender, and if approved, you receive a lump sum. You repay the loan over time, usually with interest, in monthly installments until the loan is fully paid off.

The amount you can borrow, the interest rate, and the repayment terms for a moving loan can vary depending on the lender and your creditworthiness. Some lenders offer relocation loans with fixed interest rates and repayment terms, while others offer more flexible options.

To apply for a moving loan, you must provide information about your income, employment status, and credit history. Lenders will use this information to determine your eligibility for a loan and the loan terms, such as the interest rate and repayment schedule.

Overall, moving loans can be a valuable financial tool for covering the expenses associated with relocating. However, before borrowing money, it's essential to carefully consider the terms of the loan and your ability to repay it.

What is the Purpose of a Moving Loan?

The purpose of a moving loan is to provide you with the funds you need to cover the expenses associated with moving to a new home. This can include hiring movers, purchasing packing supplies, and covering temporary lodging expenses.

Is It a Good Idea to Get Loans for Moving?

Is It a Good Idea to Get a Loan to Move?

Whether or not it's a good idea to get a loan to move depends on your financial situation and needs. Here are some factors to consider:

Cost of the Loan: Calculate the total cost of the loan, including interest rates, application fees, and any other charges. Compare this cost to your moving expenses to determine if taking out a loan is cost-effective.

Ability to Repay: Consider your ability to repay the loan. Ensure that you have a stable income and a realistic plan for repayment to avoid financial strain.

Alternative Options: Explore alternative funding sources, such as savings, selling unneeded items, or borrowing from family or friends. These options may be more cost-effective than taking out a loan.

Credit Score: Your credit score will impact the interest rate and terms of the loan. If you have a good credit score, you may qualify for a competitive interest rate, making a loan a more attractive option.

Urgency of the Move: A loan may be necessary if you need to move quickly and do not have other means to finance your move. However, if you have time to save or explore other options, it may be preferable to avoid taking on debt.

Getting a loan for moving can be a good idea if you have a solid repayment plan and cannot cover your moving expenses through other means.

Pros and Cons of Personal Loan for Moving


  • Provides funds when needed: A moving loan can provide the funds you need to cover your moving expenses when needed.
  • Flexible repayment options: Most moving loans offer flexible repayment options, allowing you to choose a repayment plan that works for you.
  • For various expenses: Moving loans can be used to cover a wide range of moving-related costs, including hiring movers, renting a truck, and purchasing packing supplies.


  • Interest rates and fees: Like any loan, moving loans come with interest rates and fees, which can add to the overall cost of your move.
  • Impact on credit score: Taking out a moving loan can impact your credit score, especially if you cannot make your loan monthly payments on time.
  • Additional debt: Taking out a moving loan means taking on additional debt, which can be a burden if you're already struggling financially.

Is It Possible to Obtain a Moving Loan With Bad Credit?

It is possible to obtain a moving loan with bad credit, but it may be more challenging. Lenders typically consider your credit score when determining whether to approve your loan application. If you have bad credit, you may still be able to qualify for a moving loan, but some lenders may require you to pay higher interest rates or fees for that.

How to Compare the Best Moving Loan Lender?

When comparing moving loan lenders, there are several factors to consider:

  • Interest rates: Compare the interest rates offered by different lenders to find the best rate for your loan.
  • Fees: In addition to interest rates, be sure to consider any fees associated with the loan, such as origination fees or prepayment penalties.
  • Repayment terms: Look for a lender that offers flexible repayment terms that fit your budget.
  • Customer reviews: Read customer reviews to understand the lender's reputation for customer service and reliability.
What is the Process to Qualify for a Moving Loan?

What is the Process to Qualify for a Moving Loan?

The specific requirements to qualify for a moving loan can vary depending on the lender. However, there are some standard requirements that most unsecured loan lenders will consider when evaluating your loan application. These may include:

Credit Score: Lenders typically perform a credit check to assess your creditworthiness. A strong credit score can improve your chances of qualifying for a loan and getting better terms. However, some lenders offer loans to those with less-than-perfect credit.

Income: Lenders will want to ensure that you have a steady source of income to repay the loan. You may be asked to provide proof of income, such as pay stubs or tax returns.

Debt-to-Income Ratio: Lenders may also look at your debt-to-income ratio, the ratio of your monthly debt payments to your monthly income. A lower debt-to-income ratio is generally preferable, as it indicates that you have more disposable income to repay the loan.

Age and Residency: You must be at least 18 years old and legally resident of the country where you are applying for the loan.

Bank or Credit Union Account: Some lenders may require a valid bank account to receive the loan funds.

Identification: To verify your identity, you may be asked to present identification, such as a driver's license or passport.

Other Requirements: Depending on the lender, you may need to meet additional requirements to qualify for a moving loan. Checking with the lender to understand their requirements before applying is essential.

How Can I Apply for a Moving Loan Online?

Applying for a moving loan online can be a convenient and straightforward process. Here's a step-by-step guide to help you through the process:

Estimate the Moving Costs:

Estimating your moving costs is essential before applying for a moving loan. This includes hiring movers, renting a truck, purchasing packing materials, and other related expenses. Knowing how much you need to borrow will help you choose the right loan amount.

Research and Compare Lenders:

Research different lenders that offer moving loans and compare their interest rates, fees, and loan terms. Look for lenders that have a good reputation, provide competitive rates, and also lend online loans with a bad credit score. Reading customer reviews can also help you assess the quality of service each lender offers.

Check the Rates:

Once you've identified a few potential lenders, check their interest rates and fees to determine the total cost of the loan. Look for lenders that offer the most competitive rates and terms that fit your budget.

Choose the Best Loan Option:

Based on your research, choose the best loan option for your needs. Consider factors such as the loan amount, interest rate, repayment terms, and any other features that are important to you.

Fill Out the Loan Application & Provide Required Documentation:

Once you've selected an online lender, complete the loan application form and visit their website. You must provide personal information, such as your name, address, income, employment status, and identification. You may also need to upload documents such as pay stubs or bank statements to verify your income.

Receive the Loan Funds:

If your loan application is approved, the lender will disburse the funds to you. The lenders usually direct deposit your funds into your bank account. Depending on the lender, you may receive the funds within a few business days.

Following these steps, you can apply for a moving loan online and secure the funds you need to cover your relocation expenses.

How Much Can I Borrow with a Moving Loan?

How Much Can I Borrow on a Moving Loan?

The amount you can borrow on a moving loan will vary depending on the lender and your financial situation. Some lenders offer loans up to $50,000 or more, while others may have lower maximum loan amounts.

However, even if you qualify for a loan of up to $50,000, it is advisable to borrow only what you truly need, especially if your financial requirements are less than the maximum available.

Alternatives to Moving Loans

When it comes to quick funding your move, there are several alternatives to moving loans that you can consider:


Using your savings to cover moving expenses is often the most cost-effective option. If you have been saving money for a rainy day or a specific goal like moving, using these funds can help you avoid taking on debt. However, ensuring that you still have enough savings left for emergencies after your move is essential.

Sell Unneeded Items:

Another way to fund your move is by selling items you no longer need or use. This can include furniture, electronics, clothing, and other household items. Not only can selling these items help you raise funds for your move, but it can also lighten your load, making your move more manageable and potentially cheaper.

Borrowing from Family or Friends:

If you have family or friends willing and able to lend you money, borrowing from them can be an excellent alternative to a moving loan. Family and friends may offer more flexible repayment terms and lower interest rates than traditional lenders. However, borrowing from loved ones can strain relationships, so it's essential to approach this option cautiously and make sure you can repay the loan as agreed.

Low-Interest Credit Cards:

Another financing option is using a low-interest credit card to cover your moving expenses. Some credit cards offer introductory periods with low or no interest rates on purchases, which can help you save money on interest charges. However, it's important to be mindful of the terms and conditions of the credit card, including the interest rate after the introductory period ends, and to make sure you can repay the balance promptly.

CASH 1 Conclusion

In conclusion, moving loans can provide a valuable financial solution for individuals facing relocation expenses. Whether you're moving across town or the country, these loans offer the flexibility and convenience to cover a wide range of moving-related costs, from hiring movers to purchasing packing materials. However, it's important to carefully consider your financial situation, explore alternative options, and compare lenders to ensure you choose the best loan for your needs. By doing so, you can confidently navigate the moving process, knowing that you have the financial support to make your transition as smooth as possible.

Photograph of author Joseph Priebe

Joseph Priebe

Joseph Priebe takes pride in assisting audiences with his articles to help them make sound financial decisions.

With over ten years of experience writing financial content his goal at CASH 1 has always been creating engaging and easy-to-digest information for anyone searching for immediate or long-term monetary solutions.

When Joseph is not writing about personal finance, you can find him photographing the Southwest United States with his 4x5 Graflex Crown Graphic camera. He is based in Phoenix, Arizona.