Can you use a personal loan for moving costs?

A personal loan could help you shoulder the financial burden of substantial moving expenses

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Whether you’re moving locally or long distance, relocation costs can be significant. Learn about the pros and cons of personal loans for moving expenses.  (Shutterstock)

If you’re planning on 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 typically can run up to $14,000 and higher due to costs for fuel and driver compensation.

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

If you’re looking for a moving loan, Credible makes it easy to see 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 relocation expenses. Like most personal loans, you can use the funds to pay for virtually anything. 

Personal loans are a type of installment credit. You’ll receive a one-time, lump-sum payment, and you’ll pay back the borrowed amount plus interest in regular monthly payments over the life of the loan. Most personal loan terms are for one to five years, though some lenders may offer longer repayment terms.

Personal loan vs. credit card

It may be tempting and convenient to simply pull out your credit card to cover your moving expenses. But before you start ringing up charges, consider the differences between using a personal loan versus a credit card for your move:

  • Interest rates — The average interest rate on a 24-month personal loan is 8.73%, according to Federal Reserve data. By contrast, the average interest rate on a credit card is 16.65%, and APRs can run considerably higher. Of course, you won’t pay any interest on credit card charges if you pay your balance in full each month.
  • Interest types — Personal loans typically 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 Experian data.
  • Payoff period — As an installment loan, a personal loan comes with a known end date when your debt will reach zero. By contrast, it’s possible to stay in credit card debt indefinitely if you only make payments for the minimum amount and continue to make purchases with the card.

If you’re confident you can repay any debt from moving expenses, you might consider a credit card with a 0% introductory APR offer on purchases. You could potentially pay no interest if you pay off your balance before the promotional period expires. But remember, your purchases will begin to accrue interest at the regular interest rate once the promotional APR period ends.

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

What moving expenses can you pay with a personal loan?

Generally, you can use a personal loan for almost any legal purpose. That means you can use a moving loan to cover just about any expense you’ll face, including:

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

5 lenders for moving loans

Many lenders offer personal loans to help you facilitate your move. The following five Credible partner lenders offer relocation loans to help you cover moving costs:


  • Minimum credit score: 550
  • Loan amounts: $2,000 to $35,000
  • Loan terms: 2 to 5 years
  • Fees: Origination fee

Best Egg

  • Minimum credit score: 600
  • Loan amounts: $2,000 to $50,000
  • Loan terms: 2 to 5 years
  • Fees: Origination fee


  • Minimum credit score: 600
  • Loan amounts: $1,000 to $40,000
  • Loan terms: 3 or 5 years
  • Fees: Origination fee


  • Minimum credit score: 660
  • Loan amounts: $3,500 to $40,000
  • Loan terms: 3 to 6 years
  • Fees: None


  • Minimum credit score: 580
  • Loan amounts: $1,000 to $50,000
  • Loan terms: 3 to 5 years
  • Fees: Origination fee

How to get a personal loan for moving costs

The application process for a personal loan can vary by lender, but the process usually involves the following steps:

  1. Estimate your moving costs. Add up your tab for the moving company, labor, and other obvious expenses, along with not-so-obvious costs like packing tape, bubble wrap, and specialty boxes for fragile items. Remember, even if you qualify for a $10,000 personal loan, only borrow what you need since you’ll pay interest on the amount you borrow.
  2. Compare lenders and rates. You can prequalify with multiple lenders, without affecting your credit, to find out what APR, loan amount, and monthly payments you qualify for.
  3. Choose the best loan option. After reviewing your loan offers, select the loan that best addresses your needs.
  4. Complete the application. Once you choose the best personal loan option, it’s time to complete a formal application. You’ll likely need to submit supporting documents, such as proof of identity, employment status, and income.
  5. Receive your loan funds. Once approved, you’ll have to sign for your loan to receive the loan funds. Funding may take between one and five business days with a traditional brick-and-mortar bank. By 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 lets you quickly and easily compare personal loan rates to find one that suits your needs.

Pros and cons of a personal loan for moving costs

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

Pros of using a personal loan for moving costs

  • Applying is fast and easy — While many traditional banks allow you to apply on their websites, online lenders streamline the process so you can complete the entire process on a device or desktop without ever stepping into a bank.
  • Fast access to funds — Some online lenders can fund loans within 24 to 48 business hours, which could come in handy if your moving date is soon.
  • Fixed interest rates — With a fixed interest rate, your payments remain the same for the life of the loan, and you’ll have a set payoff date. And with good credit, you may qualify for a lower interest rate than you might find on a credit card.

Cons of using a personal loan for moving costs

  • You’ll likely need good credit — While some lenders offer personal loans to borrowers with below-average credit, these loans usually come with higher interest rates. In most cases, you’ll need a good credit score of 670 or higher to access a larger pool of lenders and lower interest rates.
  • May have to pay fees — Some personal loans come with fees and penalties that bump up the cost of borrowing. For example, personal loans often come with an origination fee ranging from 1% to 8% of the amount you borrow.
  • Higher monthly payments than credit cards — Unlike credit cards, which usually require only a small minimum monthly payment, personal loans typically have higher fixed monthly payments so you can pay off the loan by the end of the loan term.