Compare Top Relocation Loans Providers
A personal loan for Relocation can be used to pay for a moving truck or movers, purchase boxes and moving supplies, and arrange for clean-up of your old residence. By knowing how much your loan covers, you can arrange your move with greater ease and lessen the stress of the activity.
What Is a Relocation Loan?
A Relocation loan is a loan you can use when you are moving to cover the costs associated with the activity. Therefore, you can use the proceeds from this loan to pay for the following:
- Moving supplies. This expense covers moving boxes, packing tape, packing peanuts, packing paper, moving blankets, labels, pens, and dollies.
- Professional house cleaning and carpet cleaning services.
- Movers or a moving truck.
- Painting services.
- Lawn care.
- Buying groceries while moving.
- Paying for utilities.
Moving can be expensive. That is why obtaining a personal loan for relocation can relieve some of the financial burdens that come with relocating locally or across the country. You also have to think of costs, such as storage, reserving hotel accommodations, ensuring belongings, and paying for special moving services.
Before you take out a Relocation personal loan, think about your costs and what you will need to pay. You need to account for the obvious expenses, such as moving supplies as well as some of the hidden fees, such as possible parking fees.
How to Get a Loan For Moving
To apply for a Relocation personal loan, you will need to take the following steps.
- Check Your Credit Score. When you apply for any type of Relocation loan online, you need to review your credit score first through the 3 credit bureaus. Because your loan for Relocation is primarily based on your credit score, knowing the score will help you determine what APR you will be charged.
- Select Your Loan Type. Some companies specialize in Relocation loan funding, so it is better to go through them if you want the best rates for this loan type.
- Get Prequalified for Relocation loan financing. When you choose several lending providers you like, you will need to get prequalified for your Relocation loan next. Doing so will give you the repayment details and terms for your Relocation personal loan. If you agree to shorter loan terms, you can also get a lower fixed APR.
- Compare the Lenders. After you have had a chance to get prequalified through different Relocation loan funders, you can review their loan terms and APRs, and see which one fits best with your lending or personal finance requirements. For a Relocation personal loan, go with a lender that offers the lowest APR and features the lowest fees over the term of the loan.
- Supply the Necessary Info and Documents. When you choose a lender, you will need to provide the required loan paperwork and information for Relocation loan funding. In this case, you need to supply the following details and documents:
- Personal Identification (Social security card, passport, or driver’s license)
- Proof of earnings or income (W-2s, paystubs, or filed tax returns)
- Employer information (Name of company, manager’s name, and phone number and address)
- Proof of residence (utility bill with your name and address or a lease agreement)
- Apply for the Loan and Start Making Payments. After you apply for your Relocation personal loan and start making payments, you might add some extra money to your payment each month to repay the loan faster. Doing so will make the loan repayment easier and more streamlined.
Relocation Loan Financing – What You Need to Know
To take out a Relocation personal loan, you should be aware of the following terms:
- Annual Percentage Rate (APR) – The rate of interest charged on a Relocation personal loan, expressed at an annual rate.
- Application Fee – The amount a lender charges for processing a Relocation loan application and the related documents. These fees are usually non-refundable and may or may not be included in processing a personal loan.
- Debt-to-Available Credit Ratio – When considering you for a Relocation loan, a lender may look at your debt-to-available credit details. This represents the money you owe compared to the credit available through credit lines and credit cards. Therefore, the debt-to-available credit ratio shows how much available credit you are using. The higher this percentage, the riskier you appear to a lender.
- Debt-to-Income Ratio – The percent of your monthly pre-tax income that is being used to pay off debts, such as auto loans, credit cards, and student loans. Lenders assess 2 key ratios. The first ratio is a front-end ratio or the percent of monthly pretax earnings spent on your house payment. The second percent is a back-end ratio or the other debts that are factored into the house payments.
- Late fee – A fee charged to customers who take out a Relocation loan who pay a payment late or pay less than the required monthly amount.
- Late Payment – A delinquent payment or a failure to pay on a Relocation loan before the agreed due date. A late payment can hurt your credit score for as long as 7 years.
- Relocation Loan Lender – The financial institution that provides a Relocation loan for paying for the costs of moving and the related expenses.
- Net Income – Your income after taxes has been deducted. It is also called your take-home pay. This is the amount considered by a lender when assessing your ability to repay a loan amount.
- Prepayment Penalty – A fee charged by a lender when a borrower pays off a loan before its scheduled term. Usually, prepayment penalties are not applied by standard lenders. If you are taking out a subprime Relocation loan, you need to read the loan terms carefully, as this fee may be applied.
- Principal – The amount of money owed on a loan, excluding the charged interest or APR.
- Risk Score – Another name for a credit score.
- Subprime Borrower – Some people who request funding for a Relocation loan may be subprime borrowers. A subprime borrower usually has a poor credit score because of late payments or collection accounts. Lenders evaluate and grade subprime borrowers on the degree of past collection problems – A to D, or lower. Subprime borrowers can qualify for Relocation loans but at a higher interest rate.
- Utilization Ratio – A ratio that shows a lender how much available credit you are using.
- Unsecured Loan – Most personal loans online, or Relocation loans, are not collateralized. Therefore, they are not secured with a form of collateral, such as a house or car. The lender assesses the borrower’s ability to pay primarily on their credit score.