Key takeaways
- Using a personal loan to finance a move can be a helpful solution — if you can score a low interest rate and have a plan for repayment.
- Before you borrow, consider alternatives, such as negotiating relocation assistance with your employer, saving and paying in cash or using a credit card.
- If you proceed, find the best lender for your situation by comparing banks, credit unions and online companies across the criteria that matter most to you.
Personal loans can be used for almost any legal purpose, so yes, you can get a loan to help with a move. In fact, about one in 10 personal loans are borrowed for this very purpose, according to a survey by credit builder company Self.
But before you worry about how to finance a move, make sure it’s a smart decision for your situation. If you’ve already considered alternatives, strengthened your credit and mapped out your potential repayment, you might decide to proceed. But if you can’t secure an affordable loan to move, think again.
When to consider financing your move
Knowing how to pay for moving costs is great. But before you settle on a personal loan, confirm that you’re set up for success. A personal loan can be a good option if you can say “yes” to these three conditions:
1. You’ve already exhausted other options
Personal loans are flexible and relatively accessible, but they can be costly. Consider that average personal loan rates — a direct indicator of the loan’s cost — have trended upward since March 2022 and remained elevated during the second quarter of 2025.
Review these potentially more economical options before choosing a personal loan to move:
| Scenario | Solution | What to know |
|---|---|---|
| Your move isn’t in the immediate future | Optimize your budget and save | You might temporarily trim “wants” from your list of recurring expenses, request a raise at work or sell items that you won’t need. Paying for your move in cash (without raiding your emergency savings) might be the best way to go. |
| You’re moving for a job | Negotiate employer financial assistance | Be mindful that relocation aid can be treated as taxable income. “I negotiated with [a new employer] to give me $4,000 for a move from D.C. to Atlanta,” says Bankrate lead credit card writer Benét Wilson. “What I didn’t know was that [it] was taxable, so the check was half of what I expected, so I had to scramble and use more of my own money than I wanted… Lesson learned!” |
| You have supportive family and friends | Borrow money from a loved one and create a foolproof repayment plan | Borrowing from people you know can be safer than borrowing from a bank, but it puts your personal relationship in jeopardy. Before borrowing, be sure you’re on the same page about repayment expectations — and stick to it! |
| You have a strong cash flow and good credit | Consider a credit card with a 0% introductory APR and commit to paying off the balance before the promotional period ends | This worked well for Bankrate editor Aylea Wilkins, who borrowed $3,200 to U-Haul her stuff from Arizona to Arkansas in the summer of 2024. “We got an email offer from our bank with a $5,000 limit and 18-month promotional period — we knew we’d be able to pay off the full move within that time,” says Wilkins. “We didn’t want to have the debt hanging over us… so the promotional period worked better for us than a personal loan we’d have to pay monthly for a few years.” |
2. You have strong credit (or a co-applicant that does)
If you’re seeking a personal loan with excellent credit, you’re in a position of strength. The friendliest interest rates and terms go to borrowers with the highest credit scores and lowest debt-to-income ratios, among other criteria.
Don’t worry if you don’t have tip-top credit. You might still be quoted a competitive interest rate if you have a good credit score (or a creditworthy cosigner or co-borrower).
3. You have dependable income
If you’re moving soon and have other financial obligations, you might be worried about your relocation budget.
With consistent and significant income, however, using a loan to move could be the right choice. Your reliable earnings could help you qualify for low personal loan rates, and they’ll also equip you for repayment.
Just make sure to stress-test your budget before you borrow. Confirm that your potential monthly payment would fit neatly after accounting for your next home’s cost of living.
When to avoid financing your move
Borrowing a loan to move means repaying it long after you’re settled into your new home, with potentially significant interest charges. More importantly, struggling with repayment can cause serious damage to your credit. So, if you relate to any of the following scenarios, borrowing may not be best for your situation.
You can reasonably ‘DIY’ your relocation
If you landed on the idea of a personal loan because you were quoted sky-high prices from white-glove moving companies, reconsider how you plan to move. Perhaps a do-it-yourself solution (like those below) would lessen or eliminate your need for a loan:
- Rent a truck or van (think U-Haul) and drive your stuff where it needs to go. You could also use a platform like TaskRabbit to hire some extra muscle for the loading and unloading.
- If a long-distance drive isn’t feasible, research companies like PODS and U-Pack that drop a moving container at your current home and deliver it to your next one.
- Save up boxes and other shipping materials (perhaps from your recent online purchases) so that you can pack your belongings yourself. You could also visit big-box stores or warehouses and ask to pick through their flattened cardboard. Facebook Marketplace and other online classified platforms can also be a source of used (but still usable) boxes.
- Packing your own things might also remind you to leave unnecessary items behind, perhaps even sell them (garage sale, anyone?) to help pay for your move.
Bankrate tip
If hiring a mover is still your top choice, remember to negotiate their quoted costs and, if possible, schedule your relocation during a non-peak season. Also, to avoid poor service, ask whether the mover subcontracts any step of the process to other companies.
You can’t secure a competitive interest rate
Personal loans are more accessible than some forms of borrowing, so you might not need excellent or even good credit to qualify. But without good credit, you’ll face higher interest rates, fewer repayment term options and greater overall risk to your finances. Consider these examples:
- If you have a fair credit score and apply with a cosigner or co-borrower, you might gain lender approval. But keep in mind that struggling with repayment wouldn’t only harm your credit, but also that of your co-applicant.
- You might consider secured personal loans as a way to finance a move, since they hinge more on your collateral than your credit. But you’ll forfeit that collateral if you fall behind on payments.
If you decide to borrow a personal loan with bad credit, don’t forget to shop around with federal credit unions that, unlike other financial institutions, cap their rates at 18 percent. Still, be mindful of how much more you could be paying than peers who can score a decreased APR.
It can help to crunch the numbers using a personal loan payment calculator. Here’s how interest charges impact the cost of a $6,000, three-year loan:
| Loan 1 | Loan 2 | Loan 3 | |
| Interest rate | 12% | 18% | 35.99% |
| Monthly payment | $199 | $217 | $275 |
| Cost 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 best personal loan interest rates are reserved for applicants with strong credit, a low amount of debt and a stable income. So, finding the most cost-effective loan for your situation starts with monitoring and improving your credit (or considering a cosigner or secured loan).
Then, research banks, credit unions and online lenders to compare personal loans. You might prioritize financial institutions that offer prequalification, or the ability to confirm your eligibility and check rates without undergoing a hard credit check. You could also narrow your list of preferred lenders to those that charge fewer fees, fund loans faster or offer the most flexible repayment terms.
Bottom line
We get it: moving is expensive. It can range from $882 to $2,567, or, for a longer-distance move, $2,391 to $6,869, according to HomeAdvisor.
But before you borrow a personal loan to foot the bill, exhaust your lower-risk options. If borrowing remains your best bet, confirm that you have the financial stability for successful repayment. Otherwise, the long-term costs may far outstrip the short-term convenience.
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