Personal loans can be used for almost any legal purpose, so yes, you can get a loan to help with your move. In fact, one in ten individual loans are taken for this purpose, according to a survey by credit builder company Self.
But before you worry about how to fund your move, make sure it’s a wise decision for your situation. If you have already considered alternatives, strengthened your credits and mapped potential repayments, you may decide to continue. But if you can’t secure an affordable loan, think about it again.
When should you consider funding your move?
It’s great to know how to pay for travel costs. But before you settle on a personal loan, make sure you set it up for success. If you can say yes to these three conditions, a personal loan could be a good option.
1. Already exhausted other options
Personal loans are flexible and relatively accessible, but can be expensive. Consider that the average personal loan rate (a direct indicator of loan costs) has risen since March 2022 and remains rising in the second quarter of 2025.
Before choosing a personal loan to move, check out these potentially more economical options.
| scenario | Solved | What do you know |
|---|---|---|
| Your movement is not in the near future |
Optimize and save your budget |
They may temporarily trim “requests” from a list of recurring expenses, request a salary increase at work, or sell items that they don’t need. Paying for cash moves (without hitting emergency savings) may be the best way to do this. |
| You’re moving for work | Negotiate with employer financial support | Please note that transfer assistance can be treated as taxable income. “I negotiated with (the new employer) and gave me $4,000 for the move from DC to Atlanta,” says Bennett Wilson, Bankrate lead credit card writer. “What I didn’t know was that (it was) taxable, so the check was half what I expected, so I had to scramble and use more of my money than I wanted… Lessons learned!” |
| You have supportive family and friends | Borrow money from your loved one and create a foolproof repayment plan | Borrowing from people you know is safer than borrowing from a bank, but it puts your personal relationship at risk. Before borrowing, make sure you are on the same page about your repayment expectations. |
| You have strong cash flow and good credit | Consider a 0% Introductory APR credit card and promise to repay your balance before the promotion period ends | This worked well for Bankrate editor Aylea Wilkins, who borrowed $3,200 from U-Haul from Arizona to Arkansas in the summer of 2024. “We didn’t want to hang our debts on top of us, so the promotional period worked better for us than a personal loan that we had to pay every month for several years.” |
2. You have strong trust (or co-applicants who do that)
If you are looking for a personal loan with excellent credit, you are in a position of strength. The most friendly interest rates and terms are sent to borrowers with the highest credit score and lowest debt-to-income ratio, among other standards.
Don’t worry if you don’t have tip top credits. If you have a good credit score (or a co-signer or co-borrower you trust), you may still be quoted with competitive interest rates.
3. You have a reliable income
If you move quickly and have other financial obligations, you may be worried about your relocation budget.
However, with a significant consistent income, using a loan to move may be the right choice. Reliable revenues can help you qualify for a lower personal loan rate. It is also equipped to pay back.
Make sure you stress-test your budget before borrowing. After considering the cost of living in your next home, make sure your potential monthly payments fit nicely.
When avoiding funding your move
Getting a loan to move means paying it back after you settle in your new home, potentially having a large interest. More importantly, struggling to pay back can cause serious damage to your credit. Therefore, borrowing may not be the best for your situation if it is related to any of the following scenarios:
You can reasonably “DIY” your relocation
If you landed on your personal loan idea because you quoted Sky High Price from a White Glove moving company, rethink how you will move. Perhaps a do-it-yourself solution (similar to the following) will reduce or eliminate the need for a loan.
- Rent a truck or van (think U-Haul) and drive wherever you need it. You can also use platforms such as TaskRabbit to hire extra muscles for loading and unloading.
- If long-distance drives are not feasible, research companies like Pods or U-Pack will drop the moving container into your current home and deliver it to your next home.
- Keep boxes and other shipping materials (probably from recent online purchases) so you can pack your belongings yourself. You can also access major stores and warehouses and ask them to pick up flat cardboard boxes. Facebook Marketplace and other online classification platforms are also sources of used (but available) boxes.
- Packing your own items may be a reminder to leave unnecessary items behind.
You cannot secure competitive interest rates
Personal loans are more accessible than some types of borrowing, so you may not need a great credit to qualify. However, without good credit, you will face higher interest rates, fewer repayment period options, and more overall risk to your finances. Consider these examples.
- If you have a fair credit score and apply with a Cosigner or a co-borrower, you can get approval from the lender. However, please note that suffering repayments will not only harm your trust, but also the trust of your co-applicant.
- You may consider protecting your collateral more than your credit, so you may consider a way of financing your move, a protected personal loan as a way to fund your move. However, if you are late in paying, you will lose that collateral.
If you decide to take out a personal loan due to poor credit, don’t forget to shop with a federal credit union that, unlike other financial institutions, will limit your rate to 18%. Still, it’s important to note that you can still pay more than your peers who can earn APR reductions.
It helps you calculate numbers using your personal loan payment calculator. Here’s how interest rates affect the cost of a three-year loan with $6,000:
| Loan 1 | Loan 2 | Loan 3 | |
| interest rate | 12% | 18% | 35.99% |
| Monthly payment | $199 | $217 | $275 |
| Costs of Interest | $1,174 | $1,809 | $3,892 |
| Total cost of repayment | $7,174 | $7,809 | $9,892 |
How to find the best personal loan
The highest personal loan interest rates are reserved for applicants with strong credit, low debt, and stable income. So finding the most cost-effective loan for your situation starts with monitoring and improving your credit (or considering a Cosigner or a secured loan).
Next, to compare personal loans, research banks, credit unions, and online lenders. We may prioritize financial institutions that offer prequalification or the ability to verify eligibility and check rates without undergoing a hard credit check. You can also narrow your list of preferred lenders to those who charge fees, fund loans quickly, or offer the most flexible repayment terms.
Conclusion
We get it: travel is expensive. According to Homeadvisor, it ranges from $882 to $2,567, or from $2,391 to $6,869 for long-distance movements.
However, before you take out your personal loan and step into your bill, use up your low-risk options. If borrowing remains the best bet, make sure you have financial stability to ensure successful repayments. Otherwise, long-term costs can far outweigh short-term convenience.
