When To Finance A Cross-Country Move With A Personal Loan

Muhammad Ahmad

When Should You Use a Personal Loan to Fund a Cross-Country Move?

It is not simple to pick up and move across a country. From organizing, packing, moving, and creating a new place at home, the whole process can be stressful.

The cost of moving long distances isn't cheap either. With a cost in the thousands, it may seem tempting to take out a personal loan to finance the cost. But while this is beneficial for some, the loan is not a one-size-fits-all option.

I recently spoke with Jeremiah, a young adult who had recently embarked on a cross-country trek from the South to the West Coast, and about his experience paying for transportation from one coast to the other.

The average cost of long-distance traffic

The average cost of cross-country moving can range from $4,000 to $8,000. However, the cost may be lower or higher than these limits depending on the total distance traveled, your moving weight and the time taken to move your items. This figure does not include the cost of living in another city - also known as the cost of living index - and only takes into account specific costs of moving.

Hindsight is 20/20: How a Low Interest Loan Can Help Ease Relocation Anxiety, Promote Caution

When Jeremiah made up his mind, packed up his life and moved to California this year, he said he didn't consider the loan because he was going to move to another rental unit and had some savings. "I saved up a little egg a year ago for a possible down payment on the house, so I could tap into the savings," she said.

However, he added that if he wanted to move again, he probably wouldn't get the loan if he had the same egg, but he could see the appeal of getting a low-interest loan instead of cash. More peace of mind.

The idea of being religious would make me more wary of this step, [or] make me less emotional, [or] make me really think about all the reasons I wanted this adventure, he said.

How do you know when to get a loan for moving expenses

Now may not be the best time to get a personal loan, especially if you have unstable or weak credit. Interest rates are currently at an all-time high — the average rate is 11.29 percent, according to a study by Listick — and experts aren't sure when the Fed will start cutting rates.

With a higher average rate, it is possible that interest charges alone can exceed the cost of switching over the life of the loan. However, getting a personal loan at the moment may not be the best financing option - except for those who qualify for the lowest rates and fees.

If you have a good to excellent credit score, stable income and a solid credit history, it may be worth pre-qualifying with a few lenders to see if the rates are competitive enough to pay off the loan over the long term. Being.

How to finance unexpected moving expenses

There will always be bumps in the road and unexpected expenses, so the best thing you can do is to be financially prepared for any emergencies that may arise.

For Jeremiah, some of these circumstances were more unexpected. "Unfortunately, the unforeseen costs were associated with theft of pre-shipments or having to ship something twice," he said. "Luckily, I can dispute with Amazon or IKEA, but if I buy too early, some returns or disputes go out the window."

A personal loan or credit card can be useful for financing incidental expenses — such as paying for stolen furniture — rather than trying to pay for new furniture out of pocket. However, never borrow more than you need and pay attention to the rates you are offered. You don't want to pay for that new couch and TV for years to come.

Before taking any financial step in the event of an emergency or unforeseen event, it is always a good idea to check with the moving company if they have a refund or exchange policy.

The pros and cons of using debt to pay for the move

As with every other financing option, there are advantages and disadvantages to using debt to cover the cost of moving. Whether this is the right choice for you depends on your immediate needs, your financial situation, and whether your budget will comfortably allow for future payments.


In the case of an emergency, you'll have peace of mind.

It can help promote wise spending.

It can be used for furnishing, moving expenses, and any non-optional expenses related to a road trip or long trip.


Getting approved for a low interest rate is difficult.

It can pay off years down the road.

Monthly payments must be maintained to reduce interest charges and the credit crunch.

When would you consider getting a personal loan to cover the cost of moving

If you've exhausted all other options available to you and decided that a credit card might not be the best option for your finances, it may be time to consider getting a personal loan.

However, it is only recommended for borrowers with good credit who at least meet all of the lender's application requirements. Otherwise, you may be offered exorbitant interest rates and fees that can set you back financially.

How to find the best personal loan

Since there is no widely regarded "best" personal loan, compare lenders to get the best loan for you. Pre-qualify whenever possible and apply to as many lenders as possible to see what the most competitive offer for your credit standing looks like.

What is best for you will also depend on whether the lender offers interest and incentives that will help you manage your credit. For example, it is common to see banks offering similar perks to existing customers or lending institutions to sign up for AutoPay.

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