Personal loan

Can you use a personal loan for moving expenses?

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Whether you are moving locally or over long distances, relocation costs can be significant. Find out the advantages and disadvantages of personal loans for moving expenses. (Shutterstock)

If you’re considering moving, the costs can be daunting. The average moving cost can range from $1,250 for a local move to $4,890 for a longer move of up to 1,000 miles, according to Long-distance moves can typically cost up to $14,000 and more due to fuel costs and driver’s compensation.

If you need help with moving costs, a moving loan can help. A moving loan is simply a type of personal loan that you can use to pay for moving expenses, such as renting a commercial truck or hiring a moving company.

If you are looking for a moving loan, Credible allows you to view your prequalified personal loan rates from various lenders — all in one place.

What is a moving loan and how does it work?

A moving loan is an unsecured personal loan that you can use to pay for moving expenses. Like most personal loans, you can use the funds to pay almost anything.

Personal loans are a type of installment credit. You will receive a one-time lump sum payment and repay the amount borrowed plus interest in regular monthly installments over the life of the loan. Most personal loan terms are one to five years, although some lenders may offer longer repayment terms.

Personal loan vs credit card

It can be tempting and convenient to just pull out your credit card to cover your moving expenses. But before you start charging fees, consider the differences between using a Personal loan versus a credit card for your move:

  • Interest rate – The average interest rate on a 24-month personal loan is 8.73%, according to data from the Federal Reserve. In contrast, the average interest rate on a credit card is 16.65% and APRs can be significantly higher. Of course, you won’t pay any interest on credit card charges if you pay off your balance in full each month.
  • Types of interest — Personal loans usually come with fixed interest rates, while credit cards have variable rates that can change periodically.
  • Amounts available — Personal loan amounts range from $100 to $100,000, depending on your credit, income, and other factors. Credit card limits can also vary widely. The average credit card credit limit was $30,233 in 2021, according to data from Experian.
  • Repayment period — As an installment loan, a personal loan has a known end date when your debt will reach zero. On the other hand, it is possible to remain in debt on a credit card indefinitely if you only pay the minimum amount and continue to make purchases with the card.

If you’re sure you can pay off any moving expense debt, you might consider a credit card with a 0% APR introductory offer on purchases. You could potentially pay no interest if you pay off your balance before the promotional period expires. But remember that your purchases will start earning interest at the regular interest rate once the promotional APR period ends.

Visit Credible for compare personal loan rates from various lenders, without affecting your credit score.

What moving expenses can you pay with a personal loan?

Usually you can use a personal loan for almost all legal purposes. This means you can use a moving loan to cover just about any expense you’ll face, including:

  • Moving company
  • Moving insurance
  • Truck rental
  • Vehicle dispatch
  • Gas
  • Cleaning service

5 lenders for moving loans

Many lenders offer personal loans to help make your move easier. The following five Credible partner lenders offer relocation loans to help with moving costs:


  • Minimum credit score: 550
  • Loan amounts: $2,000 to $35,000
  • Loan conditions : 2 to 5 years
  • Costs: Assembly costs

best egg

  • Minimum credit score: 600
  • Loan amounts: $2,000 to $50,000
  • Loan conditions : 2 to 5 years
  • Costs: Assembly costs

loan club

  • Minimum credit score: 600
  • Loan amounts: $1,000 to $40,000
  • Loan conditions : 3 or 5 years
  • Costs: Assembly costs


  • Minimum credit score: 660
  • Loan amounts: $3,500 to $40,000
  • Loan conditions : 3 to 6 years old
  • Costs: None


  • Minimum credit score: 580
  • Loan amounts: $1,000 to $50,000
  • Loan conditions : 3 to 5 years
  • Costs: Assembly costs

How to get a personal loan for moving expenses

The personal loan application process may vary by lender, but the process generally includes the following steps:

  1. Estimate your moving costs. Add your tab for moving company, labor, and other obvious expenses, plus not-so-obvious costs like tape, bubble wrap, and special boxes for fragile items. Remember that even if you qualify for a $10,000 personal loan, only borrow what you need since you will pay interest on the amount you borrow.
  2. Compare lenders and rates. You can prequalify with several lenders, without affecting your credit, to know the APR, the loan amount and the monthly payments to which you are entitled.
  3. Choose the best loan option. After reviewing your loan offers, select the loan that best suits your needs.
  4. Complete the application. Once you have chosen the best personal loan option, it’s time to complete an official application. You will likely need to submit supporting documents, such as proof of identity, employment status, and income.
  5. Receive your loan funds. Once approved, you will need to sign your loan to receive the loan funds. Funding can take between one and five business days with a traditional bank. In contrast, online lenders can often fund your loan the same or next business day.

If you’re ready to apply for a personal loan, Credible makes it quick and easy compare personal loan rates to find the one that suits your needs.

Advantages and disadvantages of a personal loan for moving expenses

As with any credit product, you should always weigh the pros and cons before making a decision.

Benefits of using a personal loan for moving expenses

  • Applying is quick and easy — While many traditional banks let you apply on their websites, online lenders streamline the process so you can complete the entire process on a device or desktop computer without ever stepping into a bank.
  • Quick access to funds — Some online lenders can fund loans within 24-48 business hours, which can be helpful if your moving date is approaching.
  • Fixed interest rates — With a fixed interest rate, your payments stay the same for the life of the loan and you’ll have a fixed repayment date. And with good credit, you might qualify for a lower interest rate than you might find on a credit card.

Disadvantages of using a personal loan for moving expenses