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Read this before you apply for a loan for your moving expenses


This news story was published on January 10, 2020.
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Are you planning to relocate soon? Though a move can be exciting, it can also be stressful, especially when you don’t have enough money to cover all the expenses. Whether a new job opportunity or the need to explore a different environment is inspiring you to move, having your finances in order can minimize the stress that will come with the transition. 

Moving can be quite expensive, depending on your situation. Factors such as how far you want to relocate as well as how you are planning to do it affect the exact amount you will spend. For instance, if you choose to hire professional movers, you may end up spending more than going for the DIY option. Part of your moving budget might also include things such as paying storage fees or purchasing packing supplies. Moving can be more expensive since you have to think about the travel costs as well as shipping fees if you intend to cross borders. 

One of the most crucial things that you, therefore, have to consider before you start packing is how you intend to pay for everything. If you have some cash savings, you can use them to cater for your moving expenses. Though using your credit card is one of the viable options you have, applying for a personal loan can help you big time. If a personal loan for your moving expenses appeals to you, then you need to consider the most suitable source for such a loan. 

Where can you get a moving loan?

The first option that most people look at is the bank. Such a big financial institution may give you a personal loan that can cater to all your moving expenses. It can help you spare what is on your existing credit card so that you don’t have to start from scratch when you have relocated. 

You can also turn to credit unions, which offer lines of credit to help you pay for your moving costs. When you apply for a loan, you get a huge sum of money at once for your moving expenses. This differs from a line of credit that is revolving.

For you to qualify for funds from these two options, you must have an incredible credit rating and banking history. If this is not a problem, then you would receive a substantial amount attached to low-interest rates. Some banks even offer people who need to move relationship discounts if they have impressive records. 

Though such institutions can be of great help, they may not be convenient when you are working on a deadline. Getting a moving loan from a credit union or bank can take time since they have to verify all the information you present and determine if you are eligible for the loan. Such institutions take a few days to approve loans, and this may interfere with your moving schedule.

Apart from that, the bank may request for collateral for the personal loan if your credit score is not very high. For instance, some banks ask you to pledge some of the cash you have been saving as collateral to secure the personal loan. This does not make much sense to a lot of people when they are moving since you need great help when it comes to finances. Having poor credit would make it hard for you to receive a personal loan for your moving expenses from a bank. 

This should not, however, deter you from relocating since you have a better option. Consider getting a loan from an online lender such as Cashfloat. It is a good option since such an online lender considers people with various credit backgrounds. They offer loans to people with either excellent or poor credit. Getting a moving loan from an online lender is, therefore, much easier than a credit union or bank. Since most of the personal loans from direct lenders are not secured, you don’t have to worry about collateral. 

Most people also borrow moving loans from online lenders due to their attractive interest rates and loan terms. You can qualify for a generous amount that helps you cover all your moving expenses. Since online lenders offer competitive interest rates compared to banks and credit unions, choosing this option makes more sense when you have to relocate. 

You also get to enjoy money on-demand since direct lenders process loans fast. If you want to relocate immediately, applying for such a loan from a direct lender can be convenient since you may receive funding within one business day. Before you apply for such a loan, beware of any fees since some online lenders tend to charge origination fees. 

Are there any alternatives to using a personal loan when moving?

Apart from a personal loan, you can also cover moving expenses in other ways. For example, you can consider using a credit card that has 0% interest. This prevents you from incurring extra costs during the stressful transition. Some people also borrow money from their friends or family members if they have to move urgently. For instance, if you get a job in a far place but don’t have the money to move, this may be a viable option. You should, however, have a plan on how you intend to pay them back to avoid disputes in the future. 

If you have been employed by a particular company and have to move to a different branch, you can use reimbursement benefits. Alternatively, if you have a lot of savings, you can use some of them to cover the moving expenses. For this to work, ensure you calculate all the major expenses and determine if it is the best option to avoid going broke after relocating. 

You can also find other ways to get extra cash before the move. For instance, selling some of the items that you don’t need can help you raise some funds. Do not forget to request for discounts from the truck rental company you hire since you could save cash that can help you elsewhere.

 

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