Personal Loans for Moving and Relocation in 2024

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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, plus interest, in fixed amounts usually over a few years.

These loans are available from online lenders, credit unions and many banks. Online loans typically fund faster, but you may get a better rate from your local bank or credit union.

If you have fair or bad credit (689 credit score or lower), credit union loans may be an especially good option, since they tend to offer lower rates and more flexible terms for borrowers with low credit scores. Federal credit union loans typically start under $1,000 and have a maximum APR of 18%.

» MORE: Online vs. in-person loans: How to choose

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 of moving loans

• Lower rates than some credit cards. If you have good credit, you may get a lower rate on a personal loan than on a credit card. Personal loan rates range from about 6% to 36%

• Fast funding. If your move is coming up, some online loans fund as quickly as the same or next business day after you’re approved. 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. Use our personal loan calculator to see your potential monthly payments.

Cons of moving loans

• 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 seven years.

• Fees. Some lenders charge origination fees that can range from 1% to 10% of the loan amount. This fee is included in 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 credit score or lower) or a lot of existing debt when you apply, a personal loan can be expensive. In this case, your rate may be above 20% and possibly even higher than 30%.

How to get a loan for moving

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 apply for a personal loan.

1. 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.

2. 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.

3. 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.

4. 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.

» MORE: Pre-qualify with NerdWallet to see offers from lenders that partner with us

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 cards: Borrowers with good or 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 15 to 21 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 online or hold a moving sale.