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- Moving can be expensive, but there are ways to finance your move to ease the financial burden.
- Moving loans (also known as relocation loans), credit cards, and assistance programs are available to help finance your move.
- Be sure to read the details and terms of the loan or credit card you use to pay for your move.
Moving can be very expensive, especially if you hire a professional to do the work. But even if you decide to move yourself (with a little help from a friend), you’ll probably at least need to 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 accommodation on the street and, if a permanent home is not readily available, storage or temporary housing. It can be a very difficult prospect financially.
4 ways to finance your move
If you don’t want to pay for your move out of pocket, you have several options: moving loans, credit cards, moving aid or subsidy programs, and possibly employer reimbursement.
1. Get a moving loan to pay for moving costs
A moving loan, also called a moving loan, is one option to pay for your moving expenses. A moving loan is a type of personal loan. Unlike credit cards, personal loans have fixed interest rates and monthly payments. Personal loans are also unsecured, so you don’t need to put expensive assets such as your home as collateral.
“These loans typically work by providing the borrower with a lump sum that can be used to cover various moving-related costs such as packing, transportation and temporary housing,” he said. Joshua HaleyFounder of moving and relocation blog Moving Astute.
Getting a transfer loan usually requires a high credit score, stable income, and good borrowing history. Loan terms, interest rates, and repayment methods vary by financial institution.
Moving loans are offered not only by traditional financiers such as banks and credit unions, but also by online financiers. You can apply online and, in some cases, receive your funds the same day or the next business day.
If you don’t have a lot of liquidity and need to move now, a transfer loan can be a good option. In many cases, you will have instant access to your money. Also, personal loans are usually unsecured, so you don’t use anything as collateral. You can also make monthly payments with a fixed interest rate.
Of course, the downside is that loans come with interest and fees that can quickly swell. It is important to compare the terms and rates of various providers to ensure you get the best deal for yourself.
Next Step: Find Out If You’re Prequalified For A Loan Without Affecting 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 don’t have to go through the (minor) hassle of getting a loan. Plus, you’re already accustomed to credit card payments and don’t need to add a single item to your financial portfolio.
It’s also a great way to earn more rewards and earn points for your next trip to Honolulu. Credit cards also come with benefits that you can’t get with cash. If there is a conflict between you and the mover, you may be able to dispute the charge and have it cancelled.
On the downside, if you don’t pay your credit card bill promptly, you may have to pay transaction fees and high interest rates. In the case of credit cards, there may be delays in payment processing.
Samantha OdoThe chief operating officer and sales representative for Toronto real estate firm Precond advises against using credit cards to finance your move. “It can lead to large debt and interest payments that will be difficult to repay in a reasonable time frame,” Odo said. “Credit cards are not suitable for large purchases.”
What should I pay attention to? “If you have a credit card with a low interest rate promotion or his 0% first annual interest offer and you can pay off the balance without accruing interest within the promotion period, it could be a viable option. says Odo. “Additionally, if you plan to pay off the balance in full, it’s convenient to use a credit card to avoid additional charges.”
Next steps: See the Best Balance Transfer Credit Cards Picked by Insiders >>
3. Look for moving assistance programs and subsidies
Haley said there are a variety of moving assistance and subsidy programs, including government programs and nonprofits, to help people with specific situations and needs.
“Eligibility criteria for these programs can vary widely, from income limits to specific demographics and employment requirements,” Haley said. “We encourage you to research and contact relevant organizations to find out your eligibility.”
Such assistance is generally aimed at easing the financial burden of moving by providing relocation subsidies to low-income families. Examples include:
- Federal Relocation Assistance Program: Managed by. Federal Emergency Management Agency (FEMA), available to people displaced by natural disasters such as hurricanes and floods.
- Good Neighbor Next Door Grant: Housing and Urban Development Authority (HUD) provides this grant to people whose professions directly support their communities by providing essential services such as law enforcement and emergency medical services. Good Neighbor Next Door grants pay up to 50% of moving costs.
- 211: United Way supports 211 to help pay bills. Dial 211 to find organizations that connect you with local experts and provide moving assistance.
Grants and assistance are also generally available to people displaced by natural (and sometimes unnatural) disasters and low-income households. If you need help with your migration and feel qualified, you can contact us directly. Organizations include:
- FEMA
- Good Neighbor Next Door Grant
- Dial 211.org or 211
4. Employer relocation assistance
If you are relocating for work, you can get help from your employer. In some companies, your employer will pay for the entire moving cost, or in some cases they will subsidize your moving costs with a few allowances. Covered services include:
- Packing service: You don’t need to do the packing yourself.
- Moving Company and Insurance: Covering the actual movement of your goods and potential damage.
- Temporary Housing: The Company may pay for you to stay in temporary housing while you are looking for permanent housing.
In the case of a company relocation, a lump-sum payment may be made upfront to pay for expenses. Any costs incurred may be reimbursed. Alternatively, a third party may be employed for the transfer.
Transfer Funds Frequently Asked Questions
If you don’t have enough cash to pay for the moving costs up front, you can cover the moving costs. Moving loans and credit cards are the most popular ways to finance your move.
Cash is the best way to pay your moving costs. If you don’t have enough cash on hand to cover your moving costs, common options include a personal moving loan or credit card.
A long distance move can cost thousands of dollars more than a short distance move. If you don’t have cash to cover additional costs, personal loans and credit cards are two of the most popular financing options available.
You can use your credit card to pay for the moving expenses. However, if you don’t pay your credit card bills right away, you may have to pay transaction fees and higher interest rates than the transfer loan.
yes. You can take out a loan or use a credit card to pay your moving expenses, even if your credit score is low. However, the lower your credit score, the higher the interest you pay. Also, be careful not to submit too many applications at once. It can hurt your credit score.
Transfer loans are approved within minutes and funds are disbursed as early as the same or next business day.
TurboTax says in most cases, no, at least until 2025, when the Tax Cuts and Jobs Act of 2017 expires, the rules for claiming tax credits for moving expenses will change. Exceptions include military personnel and people traveling due to natural disasters or government-mandated evacuations.