Moving loans: personal loans for relocation costs

Moving loans

Moving loans are essentially personal loans used for relocation costs, such as truck rentals, moving supplies, storage containers, etc. The cost of a move typically varies between $150 and $2,500.1 This is where a moving loan comes into the equation. Many people use personal loans for relocation costs. 

Read on to learn more about what to expect, the costs associated with moving, and how to pay for them.

What Is a Moving Loan?

A moving loan is any personal loan that a borrower uses to pay for moving expenses. This could be the cost of the moving company, the security deposit, the first month’s rent, or any other relocation expenses.

There is no one particular “moving loan.” However, many different unsecured personal loans could be considered moving loans if you use them for moving expenses. So if you take out a personal loan and use it for relocation or moving expenses, it would be considered a moving loan.

If you don’t have an emergency fund or hefty savings account, you may be wondering how you can afford to make your move happen. This is why many people choose to take out a personal loan. And if you have a solid plan for paying back the loan, then a moving loan may be an excellent option to get where you want to be.

Potential Moving Costs

Moving expenses can vary based on several factors, but you can find average costs below. 

Moving AspectLocal Move Average CostLong-Distance Move Average Cost
Hiring Movers$80 – $100 per hour$2,000 – $5,000 per move
Renting a Moving Truck$50 – $200 per day$1,000 – $3,000 per move
Packing Services$300 – $750$500 – $4,000
Packing Supplies$50 – $200$50 – $500
Storage$60 – $180 per month$60 – $180 per month
Moving Insurance$100 – $200$200 – $400

Using a Personal Loan for Relocation

If you don’t have enough money saved to cover your relocation expenses, then it’s probably time to consider a personal loan. And just like with moving to a new area, choosing a new personal loan will require a lot of research and effort on your part.

You’ll need to figure out what makes the best personal loan for you, how much you need, your repayment plan, and which lender to use. These are all critical factors to consider before you sign on the dotted line.

Choosing the lender is one of the most crucial parts of this. Make sure you look into several different lenders, read reviews online, check out their interest rates and loan terms, and look into the type of loans they offer. Make sure that whoever you decide to use is a trustworthy and credible lender that isn’t trying to scam their borrowers.

Moving Costs To Consider

Here are a few of the common expenses you may run into when planning your move:

  • Hiring a moving company
  • Renting a moving truck if you’re not using a moving company
  • First and last months’ rent for your new place
  • A security deposit for the new home
  • A pet deposit if you have pets

Make sure to factor all of these things in when considering the loan amount that you need. And don’t forget to pay attention to the loan terms, origination fee, interest rates, monthly payments, and any other important information regarding your loan of choice.

Types of Personal Loans for Moving

Choosing the right moving loan for you will largely depend on your specific financial situation, your credit score, and how much money you need.

If you happen to have bad credit, your options may be limited. Unfortunately, your credit score plays a significant role in the types of moving loans you can be approved for. If you have a low credit score, it tells lenders that you may not be a trustworthy borrower. The best thing you can do for your future self is to improve your credit score to get better loans in the future.

Personal Installment Loan

A personal installment loan is an unsecured personal loan for borrowers who have a less-than-perfect credit score. Unsecured loans won’t require any collateral from the borrower. These loans are offered based on the borrower’s credit history, credit score, and ability to repay the loan.

Personal installment loans are definitely a better alternative to some other bad credit loans. However, if you have bad credit and need a loan, typically, you have to resort to short-term, high-cost loans like online payday loans

Personal installment loans allow you to get a better, more affordable loan to cover your moving expenses.

Personal Loans vs. Payday Loans

One of the main differences between a personal installment loan and a payday loan would be the repayment term. A personal installment loan is usually paid back over several months. This allows the borrower to repay the loan slowly, over time, with smaller monthly payments. On the other hand, a payday loan forces borrowers to repay the total loan amount in one lump sum.

Another big difference would be that most personal installment loans are more affordable. On average, the interest rates for these loans are much lower than high-cost payday loans.

More affordable monthly payments, lower APRs, and more trustworthy loan terms make this type of personal loan a better alternative to predatory payday or title loans. Thus, they may be a good choice for moving loans if you have a lower-than-average credit score. And the best part is, you can get an online installment loan for bad credit.

Bank Loan

A personal loan from a bank is an excellent choice for a moving loan. They tend to carry lower interest rates, flexible loan terms, and you may get a higher loan amount. The only potential problem with this option is that many banks will require their borrowers to have a good credit score to be approved.

Banks and other prime lenders want to make sure that the loans they offer will be returned. The best way they can do that is by providing these loans to borrowers with good credit. So if you’ve ever wondered how banks set interest rates on their loans, it’s mostly based on your credit score. So if you don’t have a good credit score, you might not be able to get a personal loan from a bank.

That being said, certain banks might be willing to work with you if your score is decent. Call your local branches and talk to them about their personal loans and what’s required to get one. If you can prove that your income is sufficient, they might be willing to work with you.

In summary, if you can get a moving loan from a bank, it’s probably a wise choice. Call and talk to them about the personal moving loans they offer and find out if they can work with you.

Title Loan

Title loans are secured, short-term loans that require the borrower to offer up collateral to get one. The collateral would be the title to your vehicle. This means that if you can’t repay the loan amount, the lender can take your vehicle and sell it to recover their money. 

Some title loans would even be considered predatory. Title loans also tend to come with high interest rates. And you may not have a lot of time to repay the loan, but that will depend on the specific loan terms. Coupled with short repayment periods, this high interest rate might make it challenging to repay the entire loan amount on time. 

Although you could get a title loan with bad credit, the risk seems to outweigh the benefits. Using these for moving loans is a risky financial move that could lead to the loss of your vehicle and could negatively affect your credit score.

How Does Your Credit Score Affect Your Moving Loan?

Your credit score will play a significant role in the type of moving loans you can get.

If you have a good credit score, then you’ll be much more likely to be approved for different types of personal loans. You may also receive the following perks:

  • Lower interest rates
  • Longer repayment terms
  • Affordable monthly payments
  • Higher loan amounts

Lenders are always looking for ways to reduce their risk. For example, they might lose that money if they offer personal loans to borrowers with low credit scores. This is because having a low credit score indicates that you haven’t managed your money well in the past.

So what determines your credit score? Great question! Many of your daily and monthly financial habits will affect your credit score. For example, do you make your monthly payments on time? Do you manage your credit cards wisely? These are common items that make up your credit history, which in turn affect your overall score.

Practice good habits with your money, and eventually, you can improve your credit score and be eligible for a better loan.

Save and Budget for Your Move

If you start planning your big move ahead of time, you may be able to avoid using a loan or credit card entirely.

This will require you to create a solid monthly budget and put money into a savings account every month. However, if you can do this consistently for several months, you may have the cash you need to cover moving costs without a loan.

Budgeting and saving aren’t always easy. But they are essential for your long-term financial health. And if you can avoid a loan for the costs of relocating, it’s probably best. That being said, it will take a lot of hard work and discipline, but it is possible.

FAQs About Moving or Relocation Loan Options

What are the eligibility criteria for relocation loans?

To qualify for most relocation loans, lenders typically look at factors like your bank account history, employment status, and minimum credit score. Some lenders might be more lenient, especially credit unions, and may offer loans to fair credit borrowers.

How do I apply for a relocation loan, and how long does the approval process take?

Applying for a relocation loan usually involves filling out an online application with your personal and financial details. Once submitted, the approval process can vary, but many lenders provide decisions within a few business days. Make sure to have your bank account and employment information handy when applying.

What benefits can I expect from a relocation loan?

Relocation loans often come with fixed interest rates, ensuring your monthly payment remains consistent throughout the loan term. This can help you budget for your move without unexpected financial surprises.

Are there any drawbacks or risks associated with relocation loans?

While relocation loans can be helpful, it’s essential to be aware of potential origination fees, which can increase the overall cost of the loan. Always read the loan agreement carefully and ensure you can manage the fixed monthly payments to avoid any financial strain.

How much can I borrow with a relocation loan, and what will it cost me?

The amount you can borrow varies by lender and is often based on your creditworthiness and income. While many relocation loans offer competitive fixed interest rates, be mindful of any origination fees or other charges. Your monthly payment will depend on the loan amount, interest rate, and loan term.

What are some alternatives to relocation loans if I don’t qualify?

If you don’t meet the criteria for a relocation loan, consider exploring options like credit unions, which often have more flexible lending criteria. Additionally, you might look into personal loans from family or friends, or even employer-sponsored relocation assistance.

Is there a minimum credit score required for relocation loans?

While many lenders have a minimum credit score requirement, some cater specifically to fair credit borrowers or those with lower scores. It’s always a good idea to check with individual lenders about their specific criteria.

How do moving loans work, and where can I apply for one?

Moving loans, often termed as relocation loans, are personal loans specifically designed to cover the costs associated with relocating. They can be used for expenses like hiring a moving company, security deposits, and first month’s rent. You can apply for these loans through banks, credit unions, or online lenders. It’s essential to research and choose a trustworthy lender.

How are moving loans repaid, and what is the typical timeframe for acquiring one?

Moving loans are typically repaid through fixed monthly payments over a set period, determined at the time of loan agreement. The interest rates are often fixed, ensuring consistent payments throughout the loan term. The timeframe for acquiring a loan can vary, but many lenders provide decisions within a few business days after application.

Which institutions offer moving loans, and where can I find the best rates and locations to apply?

Various institutions offer moving loans, including banks, credit unions, and online lenders. To find the best rates, it’s advisable to shop around, compare offers, and check reviews. Credit unions might offer more favorable terms, especially for fair credit borrowers. Online platforms and comparison sites can also be helpful in finding competitive rates.

Who typically benefits from and pays for moving loans, and what are some alternative solutions?

Individuals relocating, especially those without immediate funds to cover all associated expenses, benefit from moving loans. The borrower is responsible for repaying the loan, including principal and interest. Alternative solutions include saving in advance for the move, using an emergency fund, or seeking employer-sponsored relocation assistance.

Are there any notable case studies or examples of moving loans in action?

In general, many individuals and families have successfully used moving loans to bridge the financial gap during relocations, ensuring a smooth transition to their new homes.

CreditNinja: The Bottom Line on Moving Loans

If you can avoid a loan and use your savings, then you can avoid the interest and fees that come with moving loans. But according to PBS, 66 million Americans have zero dollars saved.2 If you don’t have savings, it’s important to make sure you know how to calculate interest on a loan before applying with a lender. 

If you’re looking for competitive rates on a loan, check out CreditNinja! Our personal loans have flexible terms and our customer service is excellent. We offer emergency loans in various states across the country. 

Apply online today to see if you qualify for personal loans in Detroit, MI, or another state!


  1. How much does it cost to move? │ Homes and Gardens
  2. Can you guess how many Americans have absolutely no savings at all? │ PBS
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