Moving Loans Can Help with Relocation Costs
As someone who has relocated a dozen times in the last three years, I understand firsthand how difficult moving can be. One of the major sources of stress is the cost. If you have an upcoming move and fear you can’t afford it, a moving loan might be worth considering.
What is a moving loan?
Moving loans are any kind of personal loan you use for relocation expenses. Whether you’re moving down the road or across the country, a moving loan could help you cover some, if not all, of the costs.
Moving loans are typically small- to medium-sized loans that can be either secured or unsecured, depending on your preferences. It’s important to compare lenders and loan options so that you choose the moving loan that’s right for you.
Personal loans for moving or relocating
There are several different types of personal moving loans to choose from, including:
Installment Loans
An Installment Loan is an unsecured loan that’s typically anywhere from several hundred to several thousand dollars. You receive the loan in a lump sum and repay it over time through monthly installments. Depending on your lender, you don’t need a good credit score to get an Installment Loan.
Lines of Credit
A Line of Credit could be a good moving loan option, especially if your relocation takes several weeks. This is because Lines of Credit are a type of revolving credit that gives you access to a set amount of funds.
You can borrow as much or as little of the money from your Line of Credit as needed, and you’ll only pay interest on what you use. In this way, Lines of Credit are similar to credit cards, but they typically have lower interest rates and can be used for various things.
Payday Loans
A Payday Loan is a short-term loan that gives you access to a smaller dollar amount than other moving loans. Payday Loans typically max out at $1,000 — depending on which state you reside in — and are designed to be repaid in full when you get your next paycheck. This can be a good option when you’re running short on funds and payday is still days away.
Title loans
Title loans are one of the few types of secured loans you can use for relocation expenses. With a title loan, you give the title of your vehicle to the lender, and they give you money in exchange. The size of your loan is based on your car’s estimated value, and you can continue driving your vehicle as you’re repaying the loan.
However, keep in mind that you risk losing your vehicle if you fail to repay the loan. You will also only qualify for a title loan if you own a vehicle free and clear, as leasing doesn’t qualify.
How much does it cost to move?
Moving costs tend to sneak up on people, as most don’t realize how expensive it can be. According to Moving.com, the average cost for local moves is $1,250, while long-distance moves cost an average of just under $5,000.
The total cost of a move will depend on a number of factors, including:
- The size of your home
- Moving distance
- Whether or not you rent a moving vehicle
- If you hire professional movers
- Renting moving supplies, such as dollies
As a general rule, the further you move and the more belongings you have, the more expensive your move will be.
Other moving costs to consider
In my family’s case, we move frequently for work, which means most of our moving expenses are covered. Still, we pay for everything upfront and get reimbursed later, so I have an intimate knowledge of the various costs involved.
Important moving costs to budget for include:
- Storage. If you can’t move everything into your home right away, you may need to rent a storage unit temporarily. Climate-controlled storage units cost anywhere from $50 to $250 per month, depending on the size of your unit.
- Furniture. If you’re moving for the first time and it’s into an unfurnished home, you’ll need to fill it with furniture. Furnishing a home can easily cost upwards of $10,000, depending on the furnishings you choose.
- Security deposit. Most renters will need to pay a security deposit equivalent to one month’s rent. This can be another $1,000 to $2,000, depending on your rental.
- Moving supplies. Depending on whether you have moving helpers, you may need to rent dollies, carts, and other moving equipment. Or, you might have to hire professional movers, which can cost thousands.
- Vehicle rental. Renting a van, truck, or trailer is perhaps the most common moving-related cost to consider. Vehicle rental costs vary according to the type of vehicle you rent and how far you take it.
Do moving loans require a credit check?
Whether you need a credit check depends on your lender and the type of loan you choose. Direct and online lenders typically consider other factors, such as your employment status and current income, rather than your credit score during the approval process.
Benefits of an Advance America moving loan
If you’re in the market for fast, affordable, and convenient moving loans, consider Advance America. Here’s what we have to offer!
- Online applications. You can apply for moving loans online or in person.
- Quick approvals. Once you apply, whether online or in store, you’ll have our approval decision within minutes.
- Fast funding. If you get approved, you’ll receive your funds quickly, sometimes even the same day! You'll receive same-day funding if you apply before 10:30 AM EST.
- Manageable payments. Our goal is to make repaying your loan as easy and convenient as possible. You can set up an automatic payment plan online to ensure you don’t miss any payments.
- You don’t need good credit. As a direct lender, we consider factors like your income and employment, not just your credit score. This means you could qualify for a moving loan with good, bad, or no credit.
Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.
About the author
Jalin Coblentz has contributed to Advance America since 2023. His experiences as a parent, full-time traveler, and skilled tradesman give him fresh insight into every personal finance topic he explores.