BEST OF
Personal Loans for Moving and Relocation in 2021
Moving loans can help cover expenses if you can’t pay for relocation with savings. Compare alternatives before applying.
Moving can be equal parts stressful and expensive. While you may not be able to eliminate the stress, a moving loan can help cover your costs.
A move across town can cost from under $1,000 up to about $5,000, while a cross-country relocation could be over $10,000, according to HomeAdvisor. If you don’t have savings for a move, a personal loan can provide fast cash and lower rates than credit cards for those with good credit.
These lenders offer moving and relocation loans, whether you have good or bad credit, you need fast funding or a small loan.
Moving can be equal parts stressful and expensive. While you may not be able to eliminate the stress, a moving loan can help cover your costs.
A move across town can cost from under $1,000 up to about $5,000, while a cross-country relocation could be over $10,000, according to HomeAdvisor. If you don’t have savings for a move, a personal loan can provide fast cash and lower rates than credit cards for those with good credit.
These lenders offer moving and relocation loans, whether you have good or bad credit, you need fast funding or a small loan.
Summary of Personal Loans for Moving and Relocation in 2021
Lender | NerdWallet Rating | Est. APR | Min. Credit Score | Learn More |
---|---|---|---|---|
Best for Small moving loans | 6.16 - 35.99% | 580 | on Upstart's website | |
Best for Moving loans for good credit | 6.99 - 19.99% | 660 | on Goldman Sachs's website | |
Best for Moving loans for fast funding | 5.99 - 29.99% | 640 | on Best Egg's website | |
Best for Moving loans for bad credit | 9.95 - 35.99% | 550 | on Avant's website | |
Best for Moving loans for fair credit | 10.68 - 35.89% | 600 | on LendingClub's website |
Our pick for
Small moving loans
on Upstart's website
Upstart
Min. Credit Score
Est. APR
Loan Amount
on Upstart's website
Our pick for
Moving loans for good credit
on Goldman Sachs's website
Marcus by Goldman Sachs
Min. Credit Score
Est. APR
Loan Amount
on Goldman Sachs's website
Our pick for
Moving loans for fast funding
on Best Egg's website
Best Egg
Min. Credit Score
Est. APR
Loan Amount
on Best Egg's website
Our pick for
Moving loans for bad credit
on Avant's website
Avant
Min. Credit Score
Est. APR
Loan Amount
on Avant's website
Our pick for
Moving loans for fair credit
on LendingClub's website
LendingClub
Min. Credit Score
Est. APR
Loan Amount
on LendingClub's website
» MORE: Compare unsecured loans
What is a moving or relocation loan?
A moving loan is an unsecured personal loan used to pay for moving expenses. You can use the funds from an unsecured loan to pay for anything, including movers and furniture for your new home. You repay this loan in fixed amounts usually over a few years, plus interest.
Pros and cons of moving loans
Taking a personal loan for moving expenses is just one financing option. Here are the main pros and cons of getting one for a big move:
Pros
Lower rates than credit cards. If you have good credit, you may get a lower rate on a personal loan than on a credit card. The estimated rate for borrowers with excellent credit is 13.9%, according to our personal loan calculator.
Fast funding. If your move is coming up, some online loans fund as quickly as one business day. Submitting a complete application with all the required documents can speed up funding.
Large loans. Borrowers may access large loan amounts with a personal loan that can help with the move and getting set up in their new place.
Predictable payments. Personal loans have fixed interest rates, so you’ll make the same monthly payment for the life of your loan. This can help with budgeting for the payments and deciding what loan offer is the right fit.
Cons
Long-term debt. You’ll likely be paying for your move long after you’ve settled into your new home, since terms on personal loans can extend up to five or seven years.
Fees. Some lenders charge origination fees that can range from 1% to 10% of the loan amount, though it’s usually based on your qualifications. It’s calculated into the annual percentage rate and may be subtracted from the loan proceeds. For example, a $5,000 loan with a 5% origination fee ($250) would net you $4,750.
High rates for bad credit. If you have bad credit (629 or lower FICO) or a lot of existing debt when you apply, a personal loan can be expensive. In this case, you can expect a rate above 20% and possibly even higher than 30%.
Alternatives to moving loans
Savings are the cheapest way to pay for a move, so if you have an emergency fund or time to budget beforehand, you could avoid borrowing as much or getting a loan altogether.
If not, compare these alternatives with a personal loan to find the financing option that’s best for your plans:
Relocation package: If you’re relocating for a new job, ask your new company about paying for some or all of your moving expenses. If you didn’t discuss it during the negotiation process, it could be worthwhile to ask before going into debt for the move.
Credit unions: Federal credit union loans start as low as $500 and have a maximum APR of 18%. Because a member’s history with the credit union is considered on a loan application, those with fair credit (630 to 689 FICO) may qualify more easily than with a loan from a bank or online lender.
Credit cards: Borrowers with excellent credit may qualify for a 0% APR credit card, which charges no interest if you pay off the balance within a promotional period — usually 12 to 18 months.
Family and friends: Getting a loan from family or friends can be a low- or no-interest way to borrow money that won’t affect your credit score. Tread lightly with this option if borrowing money would mean risking your relationship with the lender.
Sell your stuff: Do you really need that piano? Selling larger items like a couch or pool table puts cash in your pocket and reduces moving costs. List items for sale on Facebook or Craigslist, or hold a moving sale.
» MORE: How to budget for a move
How to get a moving loan
Borrowers with strong credit and a low debt-to-income ratio have the best chances of qualifying for a low rate on a moving loan, although requirements vary by lender. Building your credit and improving your debt-to-income ratio are good ways to boost your chances of qualifying for a moving loan.
Here are the steps to getting a personal loan:
Decide what you need: Personal loans come in a lump sum, unlike a credit card or line of credit, and it’s not always easy to go back and borrow more. Make sure to have a strong idea of how much your move will cost before you apply.
Pre-qualify: You can pre-qualify with a lender to see what loan amount, APR and monthly payments you qualify for. Pre-qualifying doesn’t affect your credit score, so you can compare offers from a few lenders before committing to a loan.
Prepare your documents: Once you’ve decided which offer to accept, gather documents like identification, Social Security number, W-2s and pay stubs. Having all of your documents together can get you through the application more quickly and may help the lender fund the loan faster.
Make a repayment plan: Be sure you have a plan to make your payments on time, which can help you build credit and avoid late fees. Most lenders don’t penalize you for making extra payments or paying the loan off early. If you’re able to pay extra, you’ll save on interest in the long run.
Last updated on November 30, 2020
Methodology
NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.
To recap our selections...
NerdWallet's Personal Loans for Moving and Relocation in 2021
- Upstart: Best for Small moving loans
- Marcus by Goldman Sachs: Best for Moving loans for good credit
- Best Egg: Best for Moving loans for fast funding
- Avant: Best for Moving loans for bad credit
- LendingClub: Best for Moving loans for fair credit
Frequently asked questions
A personal loan is one of a few financing options for your move. Because there aren’t many restrictions on how you use a personal loan, you can spend the funds on moving expenses and things like new home furnishings. This may be the right option if you don’t already have savings, but compare all your financing options to be sure.
A personal loan used for relocation comes in a lump sum and you can spend it on almost anything you need during your move. Because these loans have fixed interest rates, you’ll make the same payment on the loan each month, usually over the course of a few years.