two young men moving stuff from van to house

Moving Loans: How To Finance Your Relocation Expenses

Hanna Kielar5-Minute Read
UPDATED: March 10, 2023


Moving can be expensive, particularly if you’re relocating for work to a new city or state. And what we don’t normally realize is that the costs can go beyond just buying a new home, too. Hiring movers, renting a van or a truck and buying new furniture are all moving costs you should consider while packing your life away. According to, by the end of the moving process, you could easily be out $700 – $2,000.

You don’t have to start your new chapter with empty pockets, though! Taking out a moving loan can cover your expenses until you get yourself settled. This article will explain how to get a loan for your big move, as well as pros, cons and alternative options.

What Are Moving Or Relocation Loans?

A moving or relocation loan is a personal loan used to cover various moving costs. Typically, moving loans are unsecured loans, so they wouldn’t require you to put any assets up for collateral. That means your creditworthiness will depend on factors like your credit score, income and your debt-to-income ratio (DTI).

Depending on your loan terms, you’ll have a set period of time in which you can pay the loan back in monthly payments. Personal loans typically have fixed interest rates, too, so your monthly payment will always be the same amount.

How To Get A Moving Loan

If you decide you want a moving loan to help cover your moving costs, follow these steps in the application process:

1. Estimate Your Moving Costs

You want to make sure you borrow enough to cover your expenses, so figuring out a ballpark amount you’ll need is the first thing you should do.

2. Compare Lenders, Rates And Terms

To find the best loan offer, you’ll want to look at multiple lenders and compare their different personal loan terms. Pay special attention to interest rates and if a lender charges additional fees.

3. Prequalify With Different Lenders

Prequalifying with a lender can tell you the loan amount you can qualify for, as well as the expected annual percentage rate (APR) and other terms. Doing this for multiple lenders can help you narrow down who you’ll borrow from.

Most lenders will do a soft credit check when prequalifying you, which won’t affect your credit score.

4. Apply For The Loan

Once you’ve decided on a lender, you can get a personal loan after completing the application process. You’ll provide documents and details like your personal information, Social Security number, pay stubs and bank account information. After submitting all of your documents, sit back and wait for an approval or a denial.

5. Sign The Agreement And Get Your Funds

If approved, you’ll sign a loan agreement and your personal loan funds should be deposited into your account within a few business days.

6. Repay The Loan Over Time

Your loan terms will specify your interest rates, APR and monthly payment amount for the life of the loan, and as long as you can make your payments on time, you shouldn’t run into any trouble.

If you want to make extra payments and pay off your personal loan early, make sure you work with a lender that won’t charge a prepayment penalty.

Pros And Cons Of Moving Loans

Moving loans have a number of benefits to them, but there may still be some drawbacks to be found.

Here are some of the major pros and cons of getting a moving loan:


  • Moving loans can have lower interest rates than high interest rate credit cards.
  • Unsecured personal loans don’t require any collateral.
  • Personal loans have a quick and easy application process, and fast funding.
  • Fixed interest rates make it easier to budget your monthly payments.


  • You’ll be taking on more debt on top of a potential mortgage and other debts.
  • Some lenders can charge origination fees.
  • Depending on your credit score, you could face higher interest rates with your loan.
  • Any missed payments could setback your credit score.

Alternatives To Loans When Moving To A New House

Personal loans aren’t your only option for financing your big move. Here are some alternative means to help cover high moving costs:

Relocation Packages

If you’re relocating for a new job, you could negotiate a “relocation package” when discussing your compensation. This can be a lump sum or a reimbursement after the move, and can partially cover expenses like a moving truck or selling costs for your home.

Credit Cards

There’s a lot to consider when comparing personal loans and credit cards, but the latter can act as an alternative under the right circumstances. If you have the credit for it, you could get a 0% APR credit card to help cover your moving costs. These cards charge no interest for the duration of a 12 – 18 month promotional period. The downside is you’ll have to repay the full amount before that period ends or face high interest rate charges.

Use Your Savings

If you have some savings left after buying your new home, or an emergency fund built up, you can utilize that money to cover some or all of your moving expenses. Once you spend that money, though, it’s gone – and you’ll have to start saving all over again.

Sell Your Possessions

You can gain some additional funds by selling unused items, or possessions you don’t plan to take with you. It may not cover your entire move, but it could put a sizable dent in your moving costs. Just don’t sell anything you might miss.

FAQs About Moving Loans

You may have additional questions while considering a moving loan. Let’s look at some common questions others have asked.

Do I Need A Loan To Move?

No, you don’t need a loan to move. Depending on the size and scale of your move, you may not need additional funds at all. A quick move around the corner or across town may only require your generous friends and family, and maybe a van or truck.

Moving across cities or states, though, may come with higher moving costs, and that’s where you may want to consider some financial help.

What Costs Can Moving Loans Cover?

There are a number of reasons to get a personal loan, and moving expenses are among them. Depending on your loan amount, you can use your loan to cover the costs of professional movers, a truck or van and even purchasing furniture for your new home.

Are There Moving Loans For People With Bad Credit?

Your loan terms and interest rate will depend largely on your credit score. Your application may still get approved with a lower credit score, but your loan options could be limited and have high interest rates.

See if you can improve your credit score before applying for a personal loan and possibly get yourself a better offer.

Final Thoughts: Getting A Loan To Move Out Could Save You Money For Later

It’s stressful to pack up and move your life, and worrying about moving costs doesn’t make it any less so. If taking out a personal loan for your upfront moving expenses could help alleviate those worries, it might just be worth it in the end. Look over your options and decide then if you want that extra leg up for your move.

If you’re curious what amount you may prequalify for, get started today with Rocket Loans®.

Hanna Kielar

Hanna Kielar is a Section Editor for Rocket Auto℠, RocketHQ℠, and Rocket Loans® with a focus on personal finance, automotive, and personal loans. She has a B.A. in Professional Writing from Michigan State University.