Get a Personal Loan to cover moving expenses
Sometimes moving can be unexpected, and you may not have the funds to pay for all of the services that are involved in this giant task. Small personal loans are a great way to quickly get the money you need, so you aren’t left struggling, trying to budget for a large event like this on a short-term notice.
How do I apply to a personal loan?
To apply for a personal loan, simply research reputable lenders online and specify the amount you need and the type of loan you’re seeking. Loans range from $500 to $50,000, ensuring coverage for various moving expenses. Provide personal and financial information to the lender to determine your eligibility for the loan.
How much will it cost?
Loans incur interest costs, typically ranging from around 4.6% and upwards depending on your credit score. Higher interest rates may apply for individuals with poor credit. Paying off the loan quickly reduces interest payments, making it a favorable option for those with the means to do so, especially for last-minute moves.
Pros: Taking out a loan for last-minute moves offers convenience for those lacking immediate funds. Regardless of credit history, loans are accessible, and funds can be obtained within 24 hours.
Cons: However, late payments incur interest charges, potentially leading to increased costs over time. In cases where prompt repayment isn’t feasible, it may result in further financial strain, exacerbating long-term difficulties.
Why we recommend getting a loan to finance your move
Getting a loan is a quick solution for covering moving expenses, especially in urgent situations where saving isn’t feasible. Loans can be obtained within 24 hours, offering immediate access to funds. Opting for a reputable lender ensures efficiency and fair terms, tailored to your specific needs and circumstances, regardless of credit history.
Get Cash Back Credit Card for Moving
Using a credit card to help pay for your moving expenses is also a great option. Many people might already have a credit card, but it does not mean to you have the best credit card to pay for moving expenses. Since moving comes with spending a lot of money in a short period of time, it is recommended to look for a credit card that offers a high cash back percentage. It is a smart way to maximize every dollar that you spend while moving.
For example, some credit cards may offer up to 10% cash back on the first $2,000-$3,000 spent. Think about it, it could represent $200-$300 off paying professional movers!
How do I apply?
To apply for a credit card, you can do it online, over the phone, or in-person. You’ll need to provide identification and employment details, including your income. Approval typically depends on meeting a minimum income requirement. Once approved, you’ll receive your card within two weeks or as indicated by your bank.
How much will it cost?
When you purchase anything on a credit card, there is usually a grace period, before you are charged interest. If you can pay your purchase off before this, you are not charged extra by the bank. If you can’t manage this, you will be charged interest, which is a percentage of the balance due and will be anywhere from 0% to 15%.
You should also note that most credit cards also have other costs, such as annual fees, or penalties for going over your credit limit. These all vary from card to card.
Why we recommend credit cards to finance your move
Credit cards are a great choice for those who perhaps don’t have the money for moving services right now, but can very easily pay it off over a longer period of time. Although there are generally some costs associated with this type of payment, it can also be helpful to your credit score if you know that you can afford it in the long run.
Open a Saving Account to Finance you Move
Perhaps one of the smartest options is the most simple: just save up. If you know that you are going to be moving in the future and you are aware that this is going to cost a lot, start saving a little each week so that by the time you need to move, you have the necessary funds.
One of the best ways to do this is to open a savings account. This is a bank account that rewards saving money with high-interest rates, so the bank will actually pay you to place your money into your account. In a lot of cases, a savings account differs from a chequing account because you are charged a fee for multiple withdrawals, encouraging you to leave the money alone and not spend it until you are ready.
How do I open a saving account?
To finance your move, consider opening a savings account and regularly saving a portion of your income. Savings accounts offer high-interest rates, incentivizing you to save. Unlike checking accounts, savings accounts often discourage frequent withdrawals with fees, helping you accumulate funds for your move.
How much will it cost?
Savings accounts typically entail fees, but finding one with high-interest rates and low fees is ideal. Many banks also charge transaction fees for frequent withdrawals or transfers, which can be avoided until you need to pay for moving services.
Why we recommend saving your money to finance you move
Saving money to cover moving expenses is a responsible choice, preventing debt accumulation. Regular deposits into a savings account allow for interest accrual, providing extra funds when needed. While this option is recommended, we acknowledge that it may not always be feasible, especially for urgent moves. In such cases, short-term solutions may be necessary for a swift relocation.
Use a Pre-paid Card to cover moving costs
A prepaid card is a wise option to control spending and avoid debt when covering moving costs. Unlike a debit card linked to your bank account, a prepaid card requires transferring funds onto it before use, providing clearer spending limitations.
How do I apply to a pre-paid card?
Some banks will allow you to apply for a prepaid card directly from them. In these cases, you can easily apply online if you already have an account with them, and they will send you the card, you can load money onto it, and begin spending.
Alternatively, you can also buy prepaid cards from non-financial institutions, such as Canada Post. If you buy your card from a store, all you need is your valid I.D. and the card fee, which is usually only around $15. This is great for those who don’t have a bank account or simply want to keep this separate from that.
How much will it cost?
Prepaid cards typically have lower fees compared to other cards, but costs vary based on factors like card type and issuer. Store-bought cards may incur a purchase fee of around $15, while bank-issued cards may have annual or setup fees. Transaction and withdrawal fees also vary. Researching available options ensures you choose the most suitable card for your needs, facilitating a smoother move.
Why we recommend using a prepaid card to finance my move
Using a prepaid card for moving expenses helps maintain budget discipline, as you can only spend the amount loaded onto the card. It’s accessible to everyone, regardless of bank account status, credit score, or income. However, it’s only viable if you have time to save before the move, as it won’t help in sudden or urgent situations requiring immediate funds.
Questions you may have about moving expenses:
We answer questions and concerns you may have about moving expenses.
How much does it cost to hire movers?
Moving services rate are usually around 60$ to 80$ per hour per man. For instance, at $60 per hour, 6 hours – 2 men move would cost 720$. You would then need to add gas, insurance, and tip.
Here is some sample data. Please make sure to get a proper quote to budget your move, as every move is different!
- Two-bedroom townhouse between $870 and $1,015
- Two-bedroom apartment with an elevator between $870 and $1,160
- Three-bedroom house around $1,600
- Four-bedroom home around $2,300.
Read our full article on the cost of moving.
How much should I tip movers?
First, let us settle it. Yes, you should tip movers, especially if they did a great job and were respectful of you and your furniture. Moving is not an easy job!
- For an average or small size move of 3 to 4 hours, a reasonable tip would be $25 per mover.
- For a larger move, or if it is a very hot day for instance, do not hesitate to go up to $50 per mover.
- In addition to tips, movers are likely to appreciate non-alcoholic beverages, such as water or Gatorade, or small snacks during the course of the move.
- It is usually recommended to tip at the end when paying the final bill.
- Final note: Reviews. The moving industry is not easy, and online reviews are very important for these companies and also for other families that will be seeking their services later on. Share your experience!
For more information, ready our full post here on how much to tip movers.
When is the cheapest time to move?
The cheapest times to move are typically midweek, midmonth, and during the winter months. Moving rates tend to be lower due to lower demand during these times. Avoiding weekends and the beginning or end of the month can also help secure discounted rates. In Quebec, moving rates can surge during Canada Day weekend due to the mass turnover of leases on July 1st, known as Moving Day.
Can I get tax deduction on my move?
It depends on the reason of your move. In Canada, you can deduct your moving expenses if you change your address due to a full-time job or post-secondary education.
To do this, you must be at least 40 kilometers closer from your place of study or your new place of work, whether your work is annual or seasonal. You can deduct many moving expenses from your yearly tax return.
- Transport and storage costs;
- Fees for terminating a lease or selling your property;
- Living expenses paid to stay near your new home (maximum 15 days);
Keep all your receipts and do not hesitate to discuss them with your accountant. Read our full article on the cost of moving.
