4 Ways to Finance a Move

How to finance a move

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• Moving can be expensive and there are ways to finance your relocation to ease the financial burden.
• Moving loans, also known as relocation loans, credit cards, and assistance programs are available to help finance moves.
• Be sure to read the fine print and terms behind whatever loan or credit card you choose to use to pay for your move.

Moving can be very costly, especially if you hire professionals to do the job. But even if you move yourself (with a little help from your friends), you will probably have to at least rent a truck, pay for fuel, and possibly get insurance. Don't forget boxes, tape, and other packing materials. You may also have to pay for lodging on the road, or even a storage unit and a temporary place to live if your permanent home won't be ready immediately. It can be a very financially daunting prospect. 

4 ways to finance a move

If you don't want to pay out of pocket for your move, there are several options, including moving loans, credit cards, moving assistance and grant programs, and, in some cases, employer reimbursement. 

1. Take out a relocation loan to pay for your move

Moving loans, also known as relocation loans, are one option to pay for your relocation. A moving loan is a type of personal loan. Unlike credit cards, personal loans offer fixed interest rates and monthly payments. Personal loans are also unsecured, meaning you don't have to put up a pricey asset — like your home — as collateral.

"These loans typically work by providing borrowers with a lump sum of money that can be used to cover various moving-related costs, including packing, transportation, and temporary housing," said Joshua Haley, founder of Moving Astute, a moving and relocation blog.

To obtain a relocation loan, you usually need to have a good credit score, stable income, and a positive borrowing history. The loan terms, interest rates, and repayment options vary depending on the lender.

Moving loans are offered by traditional lenders like banks and credit unions, as well as online lenders. You can apply online and in some cases get the funds the same day or the next business day.

Relocation loans can be a good option if you don't have a lot of  liquidity and need to move now. You can access the money pretty quickly in many cases. And personal loans are usually unsecured, so you won't be using anything as collateral. You'll also get fixed interest rates and monthly payments.

There is, of course, the downside that loans come with interest and fees that can rack up quickly. It's important to compare terms and rates of different providers to make sure you get the best deal for you.

Next Step: See if you're prequalified for a loan without impacting your credit score>>

2. Use a credit card to finance your move 

Another option is to use a credit card. If you already have a credit card, you won't have to go through the (albeit minor) hassle of getting a loan. Plus, you're already used to paying off your credit card and you're not adding one more item to your financial portfolio. 

It's also a great way to boost your rewards and rack up those points for your next trip to Honolulu. Credit cards also come with protections that you wouldn't get if you used cash. If there's a conflict between you and the mover, you can dispute the charge and possibly get it reversed. 

On the downside, you may have to pay transaction fees and high interest rates if you don't immediately pay off your credit card bill. There's also the possibility of delays with payment processing when it comes to credit cards.

Samantha Odo, chief operating officer and a sales representative at Precondo, a real estate company in Toronto, advises against financing a move using a credit card. "It can lead to significant debt and interest payments, making it difficult to repay in a reasonable amount of time," Odo says. "Credit cards are unsuitable for large purchases." 

The caveat? "If you have a credit card with a low-interest rate promotion or 0% intro APR offer, and can pay off the balance within the promotional period without incurring interest, it can be a viable option," Odo says. "Additionally, if you plan to pay off the balance in full, using a credit card can be a convenient way to avoid additional fees."

Next step: See Insider's picks for the best balance transfer credit cards >>

3. Seek out moving assistance programs and grants

Various moving assistance and grant programs exist to help people with specific circumstances or needs, Haley said, including government programs and nonprofit organizations.

"Qualification criteria for these programs can differ significantly, ranging from income restrictions to specific demographic or employment requirements," Haley says. "It is advisable to research and reach out to relevant organizations to explore eligibility."

Such assistance is generally aimed at lessening the financial burden of moving by providing moving grants for low-income families. Some examples include: 

• Federal Relocation Assistance Program: Managed by The Federal Emergency Management Administration (FEMA), and available to those who have been displaced because of natural disasters like hurricanes and floods.
• Good Neighbor Next Door Grant: The Department of Housing and Urban Development (HUD) offers this grant to those who work in professions that directly help communities by providing essential services like those in law enforcement or emergency medical services. The Good Neighbor Next Door Grant pays for up to 50% of your move.  
• 211: The United Way supports 211, which provides help paying bills. Dialing 211 will connect you with a local specialist who can help you find organizations that provide moving assistance.

Grants and assistance are generally available to those who have been displaced by natural (and sometimes unnatural) disasters, as well as low-income families. If you need help with your move and think you may qualify, you can reach out directly. Some of the organizations include:

• Good Neighbor Next Door Grant
• 211.org or dial 211 

4. Employer assistance for relocation

If you're moving for work, you may receive assistance from your employer. Depending on the company, your employer may pay for all of your moving expenses, or simply help defray the cost of moving with some benefits. Among the services that may be covered are: 

• Packing services: You won't have to do your own packing.
• Moving company and insurance: The actual moving of your belongings and the coverage of potential damages.
• Temporary housing: The company may pay for you to stay in temporary housing while you seek permanent housing.   

For a company relocation, you may be given a lump-sum of money up front to pay your costs; you may be reimbursed for costs incurred; or a third-party may be employed to relocate you. 

Relocation financing FAQs