Best Moving Loans in 2020
Uprooting your life and relocating somewhere new is an exciting but also incredibly stressful time. In addition to the emotional impact that leaving the familiar behind for the unknown brings, you also have to worry about the logistics of finding a new home, moving your things, and setting up your new life. In some cases, this may put you in a bit of a budget crunch, and even if you can afford it, you may not have the cash on hand when you need it. Moving loans can help you cover the gap and ease your transition into your new life.
What is a Moving Loan?
A moving or relocation loan is a personal loan that you can apply for to help you cover expenses related to your next big move. These loans are usually short-term and have lower interest rates than alternative financing options like credit cards. They’re also easier to apply for and are disbursed much quicker than traditional loans.
Should You Use a Moving Loan?
As with most other forms of debt, there are some cases where you should use moving loans, as well as some situations where it may not be ideal. It’s true that moving isn’t cheap—the average cost for relocation in the US is $692, though it’s not unusual to spend as much as $1,400 during a move. However, some of this may be offset by savings, relocation assistance provided by employers, and other income.
One situation in which you may benefit from getting a residency relocation loan is if you have a budget planned but are short in cash on hand now. A loan could help you cover the gap, complete your move, and get set up without stressing about missing rent payments, deposits, or buying furniture you’ll need. Additionally, if you’re sure you can repay the loan quickly, adding a little padding to your budget can be beneficial in adjusting more quickly.
However, if you have other outstanding debts, or are struggling to meet your current budget, you may be better served looking for alternative ways to finance your move.