Understanding Relocation Loans 

by Calyn Ehid

In this modern time, people move all the time for work, for life improvement, to be closer to family, or to enjoy a new city. With the cost of rental movers, furnishing your new home or apartment, and buying everything you need to live comfortably in your new home, the cost of moving can add up and be very expensive. This should not be the reason to deter you from making a move towards happiness, because relocation loans can help you finance your move quickly. Read more to find out the details about relocation loans and how to receive one today. 

What is a Relocation Loan? 

Relocation loans are loans you can apply for and receive from most financial institutions. They are an unsecured loan, meaning they do not require you to put any of your currently owned property or finances up for collateral to secure the loan payment. Relocation loans can be used for any purchases related to your move, including moving trucks, moving assistance, and new furniture and appliances. When you receive the loan, you agree to a fixed interest rate until you pay off your relocation loan. 

Relocation loans are a great option if you want to move but do not have the finances to fund your move yourself. They often have lower interest rates than credit cards, especially if you have a good credit score. You can borrow a large sum with relocation loans, much larger than the amount you would get by taking out a new credit card. They are often fast to process, so you can have the loan funding in your account as soon as the day after your loan application is approved. The interest rate also stays fixed, so paying off this loan is a predictable payment process that you can plan for at the time of applying for the loan. 

Relocation loans can sometimes require a downpayment to receive the loan, so be prepared to pay between 1% and 10% of the loan out of pocket when applying to receive a relocation loan for your move. 

What Kinds of Relocation Loans are Available Today? 

Whether moving in state or out of state, a move can be expensive on your budget. The good news is there are many institutions with available relocation loans that can help you cover your cost of moving today. Here is a comprehensive list of different institutions offering relocation loans and the loan specs to help you find a relocation loan suitable for you. 

  • Upstart Upstart offers relocation loans with a maximum of $50,000 and a minimum of $1000. Their interest rate APR varies between about 4.4% and 36%, depending on your credit evaluation. You need a minimum annual salary of $12,000 to be eligible for their relocation loan, and you will have to undergo a soft credit score assessment, but they are a good option if you have a credit score with a thin history. The loan payoff term they offer is between 3 and 5 years, and they do charge an application fee. The minimum credit score required to qualify for Upstart’s relocation loan is 580. Upstart also sends your loan in as little as one day after your loan application is approved. 
  • Marcus Marcus is a branch bank of Goldman Sachs. Marcus offers relocation loans of amounts anywhere from $3500- $40,000. Their APR rates vary from around 7% to 20% and their loan payment periods range from 3 years to 6 years. Marcus requires a steady credit score to qualify for their relocation loan, at a minimum score of 660. They will run a soft credit score check when you apply for your loan, and once you qualify you can receive your loan in as little as three business days. They do not charge a fee to qualify for your loan and you can receive a discount if you sign up to pay off your loan using autopay. 
  • LendingClub LendingClub is a peer fund lending institution that is a good option if you have fair credit, because it is a person-to-person oriented transaction. The downside of this is that you will have to wait for a lender to see and accept your offer for a relocation loan. With LendingClub you can apply for a loan as big as $40,000 and as little as $1000. Their APR rates vary anywhere between around 8% and 36%, and their loan terms vary between three and five years. Achieving loans with LendingClub does require an origination fee, but you receive your loan in as little as two days after qualifying for your loan with your lender. To qualify for a relocation loan with LendingClub you need to have a minimum credit score of 600. 
  • Best Egg Best Egg is a great option if you need to acquire your relocation loan quickly. You can apply for as little as $2000 and as much as $50,000 for your relocation loan with Best Egg. Their loan terms vary from two to five years, and their APR rates vary from about 5% to 36%. Best Egg loans are available in all states excluding Washington D.C., West Virginia, Iowa, and Vermont. To qualify for a Best Egg loan, you need to have a minimum credit score of 600 and you must be able to pay an origination fee. Once you qualify and your application is processed successfully, you can receive your loan in as little as one business day. 
  • Avant Avant offers relocation loans ranging from $35,000 to $2000. If you do not have the best credit, this could be a great option for you because their minimum eligible credit score begins at 550. Their APR rates for their relocation loans vary from about 10% to 36%, and their loan terms vary between two and five years duration. They do require an origination fee, but if you sign up for automatic payments when paying off your loan you can receive a discount. This loan can be received as soon as the next business day once your loan application processes successfully.