Moving and relocation loans

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March 25, 2025

8 min read

Moving is a lot of work, but a moving and relocation loan can help you reduce the financial stress by covering the various costs involved. That way, you can focus on getting packed up, moving, and settling into your new home. Here’s what we’re going to cover:

What is a moving loan?
How much does moving cost?
How to get a moving and relocation loan
Tips to compare moving and relocation loans
Alternatives to moving loans
Oportun: Affordable lending options designed with you in mind

Key takeaways

Personal loans, which can be used for most personal needs, can help cover moving expenses, such as packing supplies or furniture. There is not a legally defined type of loan called moving loans.
Borrowers should shop with several lenders to compare rates, terms, amounts, and other conditions.
A moving loan isn’t the only way to cover your move—several alternatives exist.

What is a moving loan?

A moving loan is a personal loan that helps you cover expenses involved in relocating to a new home. It can help bridge the gap between your savings and the overall cost of moving. These loans can help pay for:

Professional movers
Moving truck rentals
Transportation to the new location
Cleaning and repair for the residence you’re leaving
Moving insurance
New furniture
Storage unit rental
Personal vehicle transport
Move-in expenses, such as a deposit, downpayment or insurance premiums for renters or homeowners

Moving loans can be unsecured, meaning they don’t require collateral in exchange for failure to pay back the loan. They can also be secured, which may help you get approved for larger amounts or lower interest rates.

How much does moving cost?

Moving costs vary primarily by household size, distance, and the level of help you hire. That said, the average across-town move costs $1,689, whereas the average cross-country move costs about $4,567, according to NerdWallet.

How to get a moving and relocation loan

Here’s how to get a moving and relocation loan:

1. Figure out how much you need

To figure out the loan amount you’ll need, start by considering what level of service you’ll hire when moving. For example, full-service movers handle almost everything for you, but they cost the most.

On the other hand, a smaller loan could work if you’re able to do more of the work yourself. If you decide to go this route, consider the expenses involved. For example, a smaller loan might work if you can fit all your items into your vehicle and a moving trailer. Renting a moving truck will cost more.

2. Compare lenders and loan options

Lenders offer various loan terms and may cater to different credit scores and income levels. So, you can explore banks, credit unions, and online lenders to view your options. Compare rates, amounts, terms, fees, and application requirements. You can also consider customer reviews on platforms like Google and Trustpilot, and check the Better Business Bureau to help you find a lender that’s reputable and easy to work with.

3. Prequalify

Prequalification lets you see potential loan offers you’re likely to qualify for without a hard credit check, protecting your credit score. Many lenders have a prequalification tool on their websites. These ask for a few pieces of personal and financial information, such as your contact information, identity, income, and debts. The lender will also run a soft credit check, which won’t impact your credit score. While prequalification doesn’t guarantee approval for a loan, it helps you see what kinds of loans you have a high chance of qualifying for, which can be useful during the loan shopping process.

4. Fill out an application

After viewing your prequalified offers, select the best one and fill out a loan application. Some lenders may prefill the basic information you already provided during prequalification to save you some time. You may also have to provide more detailed information, such as:

Employment history
Income details
Document verification, like proof of address and bank statements
Consent for a hard credit pull

5. Wait for approval

Once you fill out the application, submit it and wait for approval. Some lenders may approve borrowers instantly, but it can take anywhere from a few minutes to several days, depending on the lender, loan amount, and your financial and credit information. If the lender approves your loan, carefully review the terms to ensure you understand your interest rate, repayment period, and any fees and other conditions.

6. Receive your funds

If everything looks good, sign the loan documents. If you provide your bank information, the lender will deposit the funds into your bank account. Even if the lender deposits the funds right away, your bank can take several days to post the funds to your account, which means you may not be able to use the cash right away. Once you receive the funds, you are free to use them as you see fit.

7. Make a repayment plan

Many moving loans offer fixed rates and fixed repayment schedules, making it easy to predict your monthly payment. Therefore, your repayment plan could be as simple as setting up automatic payments. This may help you make each payment on time, avoiding an accidental missed payment. Just make sure your bank account has sufficient funds each time your automatic payment is coming up.

If you don’t want to set up automatic payments, be sure to set reminders for your payment due dates so you don’t miss them.

If your lender reports to the bureaus, making payments is a critical factor in your credit score. Missed payments will negatively impact your credit score, but on-time payments will help build up your credit score.

Tips to compare moving and relocation loans

With so many moving and relocation loan options available, evaluate your options by comparing the following features:

Compare interest rates

Interest represents the cost of borrowing the loan. A higher rate will cost you more in interest, if paid back over the same time period. An annual percentage rate (APR) includes some fees and interest, and is a great way to compare the interest rate of loans with similar sizes and repayment period. To find the best rates and save money, you can shop around online and compare loan offers.

Consider fees

Like all loans, moving and relocation loans may come with various fees. These can increase costs of borrowing. Some fees to be aware of and compare include:

Origination fees: This fee covers the administrative costs of making the loan. If charged, it is included in the APR.
Late fees: These fees are charged for any late payments you make.
Prepayment and early payoff penalty: Some lenders charge a fee for early payments or early payoff to recoup interest payments they’d otherwise lose out on.
Application fees: This is a less common fee and is charged to all applicants whether or not the application is approved. It is designed to cover the administrative costs of reviewing an application.

Review repayment terms

Lenders may offer different loan durations for the same loan amount. For a loan with the same loan size and interest rate, a shorter repayment term will have a higher payment size but lower overall cost than a longer term. Therefore, shorter loan terms may work best if you can afford the higher payment size, and you seek faster payoff and cost savings. On the other hand, if you’d like to reduce your monthly payment to create more room in your budget, a longer loan term may work best for you.

Knowing whether your lender charges prepayment fees can help you decide what term is right for you. Choosing a longer-term loan with the option to pay off more when you have extra funds can create some flexibility in your monthly budget.

Look at loan amounts

Each lender offers different loan sizes. Choose a lender who can provide the amount you’d like to borrow, and do not feel pressure to borrow more than you need. Many lenders offer personal loans that are far bigger than what you’d need for moving or relocating, and some offer loans that are too small.

Consider approval times

Lenders approve loans at different speeds, depending on their internal review process. Financial technology companies often automate the process and may be able to complete an application review faster than traditional banks or credit unions. If your move is coming up soon, look for lenders that state they can disburse funds the same day.

Alternatives to moving loans

Moving loans can go a long way in covering moving costs, but they aren’t your only option. Alternatives to moving loans include:

Credit cards: Credit cards offer a convenient way to cover moving costs. You could also earn cashback rewards or other perks for spending money on the card. Consider opening a 0% purchase APR credit card to cover your costs interest-free, and make sure to pay it off before the intro period ends. Credit cards can lead to unmanageable debt, so also be sure to learn the best way to manage a credit card before you pick up this responsibility.
Family and friends: Family or friends may be willing to help out by lending money, manpower, or providing necessary items, such as packing supplies or furniture. This can save time by eliminating the loan application while avoiding credit checks.
Savings: If you’ve got time to prepare, saving for the move could save the most money by avoiding repayment and interest. There are lots of tools that can help you save, like Set & Save which basically does it for you.
Relocation assistance from work: Moving for a new job? See if your employer offers relocation assistance benefits. These can reimburse some or all of your moving costs.
DIY more of the move: Doing more of the move yourself or enlisting the help of friends and family can save money by reducing your reliance on professional movers. This option is usually more viable if you’re not moving far.

Oportun: Affordable lending options designed with you in mind

Now that you understand how moving and relocation loans work, you can learn about how Oportun may be able to help you if you’re looking for affordable credit options. Visit our homepage to learn about: