Does 2021 have you thinking about moving? Whether a new job is calling, or you’re simply ready for a change of scenery to/from a city, you’re not alone if relocating is on your mind this year.
According to the National Association of Realtors, more than 8.9 million people have relocated since March 2020. If you’re ready to join these ranks and make a move, you’ll probably want to start planning for moving expenses. From professional services, to trucks, to packaging and travel—all things considered…the costs of moving can quickly add up.
Fortunately, a personal loan could be a handy, affordable way to pay for this infrequent, yet critical, life event. In this case, you could consider a personal loan to pay for moving or relocation.
What is a moving or relocation loan?
A moving loan, also known as a relocation loan, is an unsecured personal loan used to cover relocation or moving expenses. Depending on your needs, you could use the money to rent a moving truck or hire professional movers, purchase packing supplies, get moving insurance, or even cover the security deposit at your new place. The amount you can borrow may depend on the lender, as well as your credit score and debt-to-income ratio, and the state you live in among other factors.
Moving loan considerations
Here’s a few things to consider before you take out a relocation personal loan:
- Lower interest rates. Personal loans generally have lower rates than credit cards, and can be a more manageable source of debt for some people who need help moving.
- Zero collateral. For relocation expenses, you won’t need to take a secured loan, which means nothing will be used as collateral such as your car or home.
- Flexible terms and fixed monthly payments mean you won’t play guessing games, and can tailor repayment options in a way that works for you.
- Watch for fees: Some lenders charge origination fees or prepayment penalties (Hint: We don’t). So read the fine print before going forward.
- Can you handle it? Are you ok going into more debt, and are you managing your other debt responsibly? Don’t let the cart get ahead of the horse—make sure you’re financially sound to take on more debt.
Still not certain that a personal loan is the right choice for your relocation? If you can find a 0% or very low APR introductory offer, a credit card could be a viable option—or perhaps ask your new employer about relocation assistance if moving for a new job.
Be sure to explore all of your financing options and consider your budget carefully in anticipation of the move. We are always here to answer any questions.
In providing this information, neither Laurel Road or KeyBank nor its affiliates are acting as your agent or is offering any tax, financial, accounting, or legal advice.
Any third-party linked content is provided for informational purposes and should not be viewed as an endorsement by Laurel Road or KeyBank of any third-party product or service mentioned. Laurel Road’s Online Privacy Statement does not apply to third-party linked websites and you should consult the privacy disclosures of each site you visit for further information.