Maybe you’ve just bought a new home or found your ideal rental. Perhaps you’ve even paid the down payment or wired the security deposit. While it probably feels as though you’ve already overcome the largest hurdle, know that moving can be another major expense you’ll need to prepare for.
Taking out a personal loan for moving can be a helpful way to spread out your expenses over a longer period of time. Follow this guide to find the best personal loans for moving.
Best Personal Loans for Moving
Moving-related expenses include buying new furniture, hiring movers, renting transportation, storage, insurance or even a short-term hotel stay before you officially settle in. All these costs can quickly add up and you could easily find yourself spending money more than you anticipated.
One way to ease the financial burden is by taking out a personal loan. You can take out a personal loan before you move to pay off expenses as they come up. Or you can take out a personal loan after you’ve moved if you find yourself short on cash. Either way, a personal loan can help turn a large expense into a more manageable bill.
Many personal loans come with low-interest rates, fixed payment schedules, flexible repayment terms and can be approved quickly. These are our top picks for the best personal loans for moving.
Fixed 5.99% – 24.99%.
0%–5% of the loan amount
Happy Money offers personal loans that allow you to more efficiently consolidate high interest payments. Happy Money was previously known as Payoff. The company was founded in 2009 and has since helped fund over $3.5 billion in loans. Happy Money is a financial company that works with approved lending partners to fund loans. Happy Money designed its Payoff Loans to provide borrowers with the financial freedom and power to be matched with a lending partner. Benzinga reviews Happy Money Loans as a way for people to consolidate debt with potentially lower APR rates.
- People with lower credit scores
- Credit card debt consolidation
- No prepayment fees
- Potentially lower APR rates starting around 5.99%
- Improve credit score
- Personal loans only available for credit card debt
Between 5.99% and 15%; autopay discount of 0.25%
Between 0% and 5% (dependent on state and local laws)
Fixed-rate loan terms of 3 or 5 years
Figure’s online personal loan application process eliminates the painstaking process of following up your paperwork to scan or send to the lender. With an entirely online application, you can get your prequalification rate without impacting your credit score. You’ll get approval within a few minutes and await funding in as little as 2 business days — up to $50,000 you can direct toward what matters most.
Figure personal loans come with multiple fixed term options so you can map out your payment schedule so that it doesn’t strain your finances. Figure also offers some perks for spreading the word out to others. You’ll receive a $150 gift card for every friend you refer, and they too will get a $150 gift card when their loan funds.
Figure’s home equity line of credit lets you turn your home equity into up to $250,000 cash in as few as 5 days. Rates start as low as 2.88% APR1, and you can choose among 5-, 10-, 15- and 30-year fixed term options. You can also get up to $500,000 cash-out in mortgage refinance, all with custom rate and payment options.
While you can easily land better rates with a higher credit score, Figure also has options for applicants with less than perfect credit. You may secure a HELOC with a credit score as low as 620 (except in Oklahoma where the minimum is 720).
- Online loan application
- Unsecured loans
- Affordable loan fees
- 100% online application
- Quick funding
- Competitive rates
- Stellar customer service
- Multiple fixed term loan options
- A gift card for every referral (personal loan only)
- Personal loan offered in all 50 states
- Products not available in some states
- Personal loans capped to $50,000
Up to 4.75%
Established in 2012, Chicago-based Avant helps people obtain personal loans while offering transparent credit. Since its inception, Avant has helped over 1.5 million people receive funding.
One thing that makes Avant so unique is its background as a financial technology company instead of a traditional bank. Banking needs are addressed by Evolve Bank & Trust, a member of the Federal Deposit Insurance Corp. (FDIC). The FDIC insures deposits and protects consumers in case of bank disasters. Benzinga’s review of Avant determined it is a strong option for personal loans because of its reputation for positive customer experiences and fast funding options.
- People with below-average credit scores who need unsecured personal loans
- People who need fast funding
- Quick funding
- Fixed payments
- Mobile accessibility
- Additional costs such as origination fees
- No third-party guarantor such as a co-signer on a secured personal loan
Up to 240 months
LightStream was founded by its parent company Truist Financial. The company offers a wide range of traditional and innovative personal loan benefits and opportunities such as home improvement loans and fertility financing to address a wide range of needs. The company charges APRs between 3.49% and 19.99%. Benzinga offers a review of LightStream’s personal loan options that provide a variety of personal loans while minimizing additional fees and promoting financial flexibility. The company offers diverse loans with varying term lengths, APRs, and uses. For example, Lightstream offers a variety of home improvement loans that are designed to assist with specific needs such as funding for landscaping or solar panels.
- Potential borrowers interested in quickly funded unsecured personal loans
- Same day funds
- People with stronger credit scores
- Doesn’t require collateral
- No late fees
- Potential same day funding
- Self-selected funding dates
- Offers a mobile application to ease access to loan information
- Not recommended for bad credit scores
Types of Personal Loans for Moving
Depending on your credit score and financial situation, there are a variety of personal loans you can take out that will help with the cost of moving. Different loans have different terms and requirements. It’s important to be familiar with all types of personal loans before agreeing to borrow money.
If you feel that a personal loan for moving would be beneficial, it’s time to get an idea of the most common types of loans you could be offered.
A secured loan is a personal loan that is guaranteed by collateral or an asset you own. Collateral can be anything that is valuable — your home, car, jewelry, antiques, an investment portfolio or art. The most important factor is that you are the owner of the asset and its value is high enough to cover the amount of money you’ll owe.
Secured loans are common options for people that have no credit history or low credit scores. While they can be a great way to obtain much need cash without a credit check, these loans can be dangerous if you are unable to pay back the money you owe. You’re at risk of losing the asset you’ve put up for collateral if you can’t meet the loan’s terms.
Unsecured loans don’t require you to put up any collateral in exchange for borrowing money. Instead, lenders will look into your credit score and income levels to determine whether you are eligible to borrow money.
Unsecured loans can charge different interest rates and fees depending on the lender. If you have a healthy credit report and a steady stream of income, you should have no problem getting approved for a personal loan at a low-interest rate.
A fixed-rate loan is a type of loan where the interest rate remains the same for the duration of the loan. Auto loans, student loans and mortgages are common examples of fixed-rate loans. Fixed-rate loans can work in your favor if you are able to lock in your loan for a low-interest rate. The main risk with fixed-rate loans is locking in a long-duration loan at a high-interest rate.
Homeowners locked into 30-year mortgages at high rates often run into this issue and are left scrambling to try to refinance when interest-rates go down. However, most personal loans for moving generally have a duration of up to a couple of years. So, you’ll be less likely to run into these kinds of problems.
Personal Rate Loans
Most people take out personal rate loans when they are trying to cover a personal expense, like moving. Personal rate loans are often unsecured, fixed-rate loans with a set time duration. Lenders will typically look into your credit history, existing debt, income level and other factors to determine whether you are eligible.
Personal Loan Requirements and Criteria
Most lenders will look into your credit report when deciding whether to approve you for a personal loan. If you don’t have a credit history or if your credit score is poor, you’ll have a harder time securing a personal loan. In this case, your options will be limited and you may have to accept a high-interest rate or agree to a collateral loan. Some other factors lenders typically require from you include:
- Steady income
- Debt-to-income ratio
- Payment history
- U.S. citizen or legal resident
- Minimum age (usually 18 but varies in different states)
Personal Loan Considerations
There is always some amount of risk when you are borrowing money. You could have trouble repaying your loan if you lose your job, interest rates go up or in the event of a financial shock. If you make late payments or are unable to meet the terms of your loan your credit score will be negatively affected. A poor credit score can make it difficult to get a new home, get a car and even find a place to live. If you take out a collateral loan and are unable to repay your debts, you could end up losing your home, vehicle or other important assets.
Although the prospect of a large sum of cash can seem enticing, remember that interest rates and other fees can quickly add up and ultimately harm your finances. It’s important to never borrow more money than you’ll be able to pay back. It’s also important to thoroughly read through and understand the terms you are agreeing to.
Remember to avoid predatory loans at all costs. Predatory loans impose unfair or abusive terms on borrowers. Often lenders may try to coerce, force or hide important information from you to try to get you to agree to terms that will benefit them at your expense. These loans can be dangerous. They come with high-interest rates and fees that can leave you in a cycle of financial debt and ruin your credit score.
Make sure to only work with licensed lenders. Avoid any loans that sound too good to be true. Be alert to lenders who rush you to sign documents, leave blank spaces in documents or offer packaged services.
Personal Loans vs. Credit Cards
Personal loans offer a lump sum of money for a fixed-interest rate and set duration. Credit cards often come with variable interest rates and a continuous credit line. Credit cards offer more flexibility than personal loans. With a credit card, you can get by making the minimum payments on your balance and you’ll have access to credit so long as you continue to pay off your balance.
On the other hand, credit cards often charge higher interest rates than personal loans. You’re also more likely to fall into debt when you rack up a balance on your credit card than if you were to take out a personal loan.
Borrowing Money for Moving
Getting approved on a personal loan for moving will depend on how much you intend to borrow, your financial health and the lender’s requirements. It’s a good idea to shop around for different lenders to find the best interest rates and the payment plan that best suits your situation. Remember to always thoroughly read and understand every document you sign. In all, a personal loan is one way to make your moving process easier.