How to Get a Personal Loan for Moving

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How to Get a Personal Loan for Moving

Moving can be an exciting time. You’re starting a new job, going off to college, or just seeking a change of scenery. You’re thrilled — until you think about the toil involved in moving: buying boxes and tape, packing, renting a truck or hiring a mover, and more.

Then there’s the cost. The national average expense of a local move is $1,711, while a long-distance move costs an average of $4,792. Knowing that, you might naturally wonder whether you can use a personal loan for moving.

MoneyLion is here to help you by offering a service to help you find personal loan offers. You could qualify for offers of up to $100,000 from our top providers. You get to compare rates, terms, and fees from different lenders and choose the best offer for you.

Can you take out a personal loan (moving loan) to move?

A moving or relocation loan is an unsecured loan designed to help cover the costs of a move, which can be anything from purchasing moving materials to paying movers to placing a downpayment on a new apartment. It’s essentially a personal loan you repay with interest over several years. According to Lending Tree, 23.5 million Americans owe a collective $245 billion in personal loans, more than double the $117 billion owed in 2017.

How do moving loans work?

A personal loan for moving is unsecured, meaning you don’t have to put up any assets as collateral. The stronger your credit score and the lower your debt-to-income ratio, the better the amount, rate, and terms you can qualify for.

Lenders’ offers vary. These loans also come as a lump sum, so you’ll want to be clear about how much you need before applying, as you likely won’t be able to take out another loan.

Pros and cons of moving loans

If you don’t have the money for a big move or don’t want to spend too much out of your pocket, a personal loan for moving is one of several ways to make it happen. Here are the pros and cons:


  • Typically have lower rates than credit cards
  • Fast funding
  • Substantial amounts available


  • Debt after your move
  • Loan fees
  • High interest for low credit

Moving can be an expensive project, so it’s important to weigh the potential benefits and drawbacks carefully before making any decisions.

How to get a personal loan for moving

Planning can go a long way when it comes to obtaining the money you need. By getting an early start, you can accurately project the cost of your move and secure funding in advance.

1. Research different lenders

You can pre-qualify for a personal loan for moving without impacting your credit score. Doing so allows you to compare offers from several lenders. You’ll want to compare the loan amount, annual percentage rate (APR), monthly payment, and repayment period.

2. Check your credit score and work on improving it

Before pre-qualifying, check your credit report to find your credit score. A score of 670 or above on the FICO scale can get you better loan terms, including a lower interest rate. If your credit score is bad, fair, or on the low end of the “good” scale, it may be wise to work on improving it before applying for a moving loan.

MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit — such as credit monitoring, credit report disputes, and getting credit by paying bills.

3. Gather necessary documents

Once you’ve determined which loan will work best for you, gather the information the lender will need to fund your loan. This includes your personal details, Social Security number, proof of address, W-2s, and pay stubs. Having your documentation in order will facilitate the application process and get you funded faster.

4. Fill out a loan application with the chosen lender

Applying for a personal loan is pretty straightforward — just give your lender of choice the documentation you gathered when preparing to fill out your loan application. Your lender will check your credit score, payment history, annual income, and debt-to-income ratio and decide whether to approve your request.

5. Review the terms before signing the agreement

You must understand the loan’s agreement terms to know whether you’ll be able to pay it back. Take your time and review the terms carefully before signing the agreement.

6. Use the approved funds as moving expenses

Once you receive the money, you can deposit it in your checking account and begin paying for the services and supplies you need to carry out your move.

Other options to finance your moving

Knowing your expenses are covered by a personal loan for moving can reduce your stress and help you get the job done, but there are also other ways to pay for your move.

1. Government grants or programs

The federal government and certain nonprofit organizations provide moving assistance. For example, the Federal Relocation Assistance Program can help if you’ve been displaced by a natural disaster.

Similarly, the Good Neighbor Next Door program offers grants to workers who serve their communities, like police officers, firefighters, and emergency medical personnel. The United Way also provides moving support for low-income families.

2. Credit cards 

While credit cards often have higher interest rates than what you’d pay on a moving loan, you might qualify for a zero-percent APR credit card with good-to-excellent credit. You could charge the move and pay off the credit card within the promotional period for no interest. Promotional periods on these cards typically run from 15 to 21 months.

MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences, allowing you to make the right choice specific to you!

3. Personal savings

If you have sufficient savings, it is the most cost-effective option to finance your move. Assuming you start saving well in advance of your planned move, going this route could help you avoid a loan altogether.

MoneyLion offers a convenient marketplace to compare high-yield savings accounts from our trusted partners that could help grow your money.

Plan your big move knowing your costs are covered

Moving is often as stressful as it is exciting, but having assurance that your main expenses are covered can ensure that the entire process is smooth. A personal loan for moving is an option that can be explored to pay for your move.

Frequently Asked Questions 

Can I get a loan for moving expenses?

You can seek a personal loan for moving from traditional financial institutions, such as banks or credit unions, or from online lenders. Generally, you must have a good credit score, a stable income, and a positive history of borrowing.

Are personal moving expenses deductible?

Since the passage of the Tax Cuts and Jobs Act of 2017, personal moving expenses aren’t deductible for most people. However, if you’re active-duty military, you can deduct moving expenses related to a military order to move or a permanent change of station. 

Is a personal loan for moving a smart move?

A personal loan for moving can be more cost-effective than paying by credit card or other means. Such a loan typically carries a lower interest rate and fixed payments and doesn’t require expensive assets as security.

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