Here are answers to some of the most frequently asked questions about moving loans.
Are there loans for moving services?
Yeah.
You may be able to get one from your bank, although banks aren’t as liberal with their lending as they used to be.
Alternatively, some professional removal companies may also offer such assistance.
Do I have a guaranteed loan?
No.
No lender anywhere will guarantee to offer a loan up front. They always do their advertising “subject to status.” What that means is that they will want to look at your income and credit history before deciding whether or not to advance a loan.
This is perfectly normal practice and you are not being singled out. If you think about it, would you lend money to a stranger if you knew nothing about him, the reason he asked for the money, and whether or not you would have a fair chance of getting it back?
Can I get a loan if I have bad credit?
Quite possibly yes.
It depends on the exact nature and severity of your past credit history difficulties. It has been estimated that around 80% of us have some minor blemish on our credit history files (for example, an accidentally missed credit card payment one month) and these are typically seen as nothing by lenders .
Some problems can be much more serious, like being sued for non-payment of loans, etc.
If you have some moderate issues on your files, they won’t be a hindrance, although lenders may raise your interest rate a bit to reflect the extra risk they’re taking.
Why do lenders ask for receipts?
If you get your financing through a moving company, it’s probably not necessary. Lenders usually send the agreed amount directly to the removal company.
If you are applying from other sources, lenders may (but not always) want to see evidence of the quote 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 ask you to show evidence that you have used it for its intended purpose.
All of this is normal and should not be a cause for concern. It has a lot to do with lenders, whether it’s trying to reduce the risks of default because you spend money on other things (for example, gambling) or to prevent loan fraud.
How do I know I’m getting a fair interest rate?
Just buying and researching online.
How long can I borrow the money?
That is a matter for you and the lender to discuss.
Most lenders will accept payment within 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 with a credit card?
Yes, assuming that the interested company 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 the loan off all at once by the end of the month or pay very fast) .
Compare it to the costs of a specific loan from another company.
