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Moving and Relocation Loans
Whether you’re moving cross-country or across town, relocating is expensive. In fact, the national average for moving less than 100 miles is about $1,400. That amount can range between $2,200 and $5,700 if you relocate out of state!
Given the expense, needing help with moving costs is not unusual. But a moving loan is a convenient way to get the money you need to cover your relocation expenses. Here’s how moving loans work, how to use one, and some types of moving loans at your disposal.
What is a moving loan?
Moving loans are a type of personal loan used for various relocation costs.
Typically, moving loans are unsecured, meaning that you don’t need any collateral to borrow money. Instead, the lender approves you for a moving loan based on factors like your credit history, employment status, or proof of income. You may not even need a good credit score to qualify.
Certain types of secured loans, such as title loans, can also cover moving costs. Depending on your collateral’s value, you may be able to borrow more money with a secured loan. Still, you’ll want to compare lenders and their loan options before deciding which moving loan is right for you.
How to use a moving loan
Relocation loans can fund all your moving expenses. Here are just a few examples of how Advance America customers have used their moving loans:
Moving services
Full-service moving companies reduce relocation stress and make your move as effortless as possible. The drawback? They can cost several thousands of dollars.
Packing and transporting everything yourself will save money, but even renting a trailer to pull behind your own vehicle can break your moving budget. A relocation loan ensures you have the funds needed to cover your preferred moving service.
Storage costs
Renting a storage unit is a great way to temporarily store and organize items when you’re in the process of moving. You also might need a long-term storage unit if you’re downsizing to a smaller home.
But standard storage units can cost upwards of $180 per month, with climate-controlled units renting for even more. If a monthly storage rental doesn’t fit into your budget, a moving loan can help.
Furniture
Need to furnish your new home or apartment? Buying brand-new mattresses, bed frames, sofas, dining sets, and large appliances may not fit into your relocation budget.
Fortunately, moving loans can cover those costs so you can feel right at home in your new place.
Security deposit
If you’re moving to a new apartment or rental home, be prepared to pay at least one month’s rent plus a security deposit to move in. On average, a security deposit equals one month’s rent.
In addition, some states allow landlords to collect both the first and last month’s rent along with a deposit.
So, let’s say the rent at your new place is $1,300 a month. If the landlord only requires the first month’s rent and a security deposit, you’ll still need $2,600 cash just to move in. If they require both the first and last month’s rent in addition to the deposit, you’ll need $3,900. A moving loan can help cover those costs.
Moving supplies
You’ll need more than packing tape and cardboard boxes to pull off a successful move. The costs of bubble wrap, markers, slipcovers, furniture pads, box cutters, work gloves, bungee cords, and cleaning supplies add up quickly.
Plus, if you plan to do the heavy lifting yourself, you’ll need a hand truck, a mover’s dolly, and moving straps. Loans for moving expenses can cover all these items.
Types of moving loans
Ready to get help with moving costs? Advance America offers multiple options:
Installment loans
An installment loan is a quick way to get the money you need to fund your entire move. This type of loan offers lengthy repayment terms, which means you can repay the loan over time in smaller, multiple payments.
At Advance America, we consider more than just your credit score in our approval decision. So, even if you have bad credit, an installment loan might be an attainable solution.
Lines of credit
Opening a personal line of credit can help with moving costs and give you access to money when you need it. With this moving loan, you can withdraw any amount you need up to your maximum borrowing limit. Best of all, you only pay interest on the amount you borrow.
Payday loans
Moving before payday and running low on money? Consider a payday loan for moving expenses.
A payday loan is a short-term loan that gives you access to a smaller dollar amount than other moving loans. That’s because payday loans are designed to be repaid on your next payday, hence the name. As such, you’ll only want to borrow what you can afford to repay with your next paycheck.
Title loans
When researching loans for moving house, consider using your vehicle as collateral to increase the amount you can borrow.
Title loans give you access to money based on your vehicle’s appraised value. You must own your car and allow the lender to hold your title until you’ve repaid the loan. But, since title loans are secured with collateral, you don’t necessarily need good credit to be approved.
How to get a moving and relocation loan
If one of these moving loans sounds like an ideal solution, here’s how to streamline your approval process:
- Apply online or in-store. Advance America makes it easy to apply for a moving loan. Simply visit one of our convenient locations during business hours or apply online 24/7.
- Get your approval decision. Approval times vary by lender. At Advance America, you’ll know whether you’re approved within minutes of submitting your application for a moving loan.
- Receive your money. In some cases, you may be able to access your moving loan funds the day you apply. For example, if you’re approved for an Advance America loan before 10:30 AM ET, you’ll typically receive money in your bank account by 5 PM that day.
Benefits of loans for moving and relocation
You shouldn’t have to jump through hoops to get financial help with moving costs. Fortunately, moving loans offer several benefits, including:
Fast funding
Depending on the type of moving loan you choose, you may have access to the borrowed funds the same day you apply. In other cases, you’ll receive the money the next business day.
Manageable payments
Many moving loan options, such as installment and title loans, offer extended repayment terms, which means more manageable payments. In other words, these moving loans let you repay a larger amount over time on a payment plan you can afford.
You don’t need good credit
Advance America’s approval process doesn’t require good credit. Instead, we consider other factors like your employment and income, which means you may be able to access bad credit loans to fund your next move!
Get a moving loan from Advance America
Moving is always challenging due to the amount of time, effort, and money involved. But we can help with relocation costs by offering competitive moving loans that fit your life. Learn more about our online loans and apply today!
