Here are the answers to some frequently asked questions about loans to cover home moving costs.
Are there loans for home moving services?
Yes.
You may be able to get one from your bank, although banks are not as free with their loans as they used to be.
Alternatively, some professional moving companies may also offer such assistance.
Do I have a secured loan?
No.
No lender anywhere will guarantee to offer a loan up front. They always make their advertising “status bound”. What that means is that they will want to see your income and credit history before deciding whether or not to advance a loan.
This is perfectly normal practice and is not pointed out to you. If you think about it, would you lend money to a stranger if you didn’t know anything about him, why he’s asking for the money, and whether or not you have a fair chance of getting it back?
Can I get a loan if I have poor credit?
Possibly yes.
It depends on the exact nature and severity of your past credit difficulties. It has been estimated that about 80% of us have some minor defect in our credit history files (for example, an accidentally missed credit card payment in a month) and are generally seen by lenders as nothing. .
Some problems can be much more serious, such as being sued for defaulting on loans, etc.
If you have a few moderate problems on your files, they won’t be an obstacle, although lenders may raise your interest rate a bit to reflect the additional risk they are taking.
Why do lenders ask for receipts?
If you get your financing through a moving company, it probably isn’t necessary. Lenders can usually send the agreed sum directly to the mover.
If you are applying to other sources, lenders may (but not always) want to see evidence of the listing to verify that it is reasonable. They can also request to settle the sum directly themselves. In other cases, they may give you the loan, but they will ask you to prove that you have used it for its intended purpose.
This is all normal and should not be a cause for concern. In large part, it has to do with lenders trying to reduce the risk of default because you spend money on other things (gambling, for example) or to prevent loan fraud.
How do I know that I am getting a fair interest rate?
Just shopping and doing some research online.
How long can I borrow the money for?
That is a matter for you and the lender to discuss.
Most lenders will accept repayment in a few years if the amounts are larger. Remember, though, that the longer the repayment period, the more the loan will cost you in interest payments over time.
Can I pay for moving services by credit card?
Yes, assuming the company in question accepts them.
It’s worth keeping in mind that borrowing money with a credit card is often one of the most expensive ways to use what is actually a loan (assuming you don’t pay off the loan in one fell swoop before the end of the month or do pay very quickly). .
Compare it to the costs of a special-purpose loan from another company.
