You decided to move to another city in order to find a good job, the doctors recommended changing the climate radically, you decided that for further development you definitely need to move to another region.
Regardless of the reasons, along with excitement and anticipation of new impressions, the move entails more prosaic changes, in particular financial ones. When planning drastic changes, take care in advance of what you need to do now and how to prepare for moving to a new city from a financial point of view.
How do relocation loans work?
All personal loans are divided by purpose and method of granting them. Based on this, they are divided into:
• credit cards;
• express loans.
Targeted loans are granted for the purchase of specific goods or the implementation of certain plans, as relocation to a new city. When parties conclude a transaction, funds are often transferred not to the borrower’s account, but to a third party who provides a product or service. With the help of targeted loans, expenses related to moving to a new city are covered. Loans are issued for a period of 3 months to 10 years or more. Lending conditions in the developed programs are milder compared to other products, as financial institutions constantly monitor cash flow. In cases of breach of contract, the lender may tighten the requirements by raising the rate or imposing a fine. Therefore, you should take targeted loans consciously, adhering to all clauses of the contract. Rates on targeted loans often have a grace period without interest.
Non-targeted loans are money loans granted to citizens for a short or long period. At the conclusion of the transaction, the borrower does not need to indicate the purpose of the expenditure of funds. And this is the main advantage of the product. Banks and private credit companies grant non-targeted loans at a percentage above the average – at 15-35% per annum.
Credit card is a payment and settlement product granted by banks for their customers in the form of a plastic card. The tool is intended for cash withdrawal, cashless payments, purchase of goods and services by installments. Most cards have a grace period that allows you to use the established balance for free. After this period, if the card balance is not replenished, interest is accrued on the amount spent – an average of 20 to 50% per annum.
Express loans are small cash loans that are provided by private microfinance organizations, microcredit companies and credit consumer unions for a limited period, mainly up to a salary – from 3 to 30 days. Funds are issued online by transfer to a card or bank account, as well as through stationary offices. In microfinance organizations, customers can get a personal loan with a bad credit history. In return for fast service and loyalty, they take high interest rates.
How can I apply for a relocation loan?
If you are not a client of the bank and want to get a loan, you will need to follow these steps:
1. Choose a loan that suits you. You can choose offers based on the interest rate convenient for you, the loan amount and the repayment term.
2. After you decide on a loan, you need to apply online – for this, follow the link to a specific banking service, and you will find yourself on the bank page with a detailed description of the loan. There you will need to fill out a loan application form;
3. Next, you should wait for the bank to respond. If the loan is approved, the manager of the organization will contact you, and you can discuss with him/her all the conditions of the loan, as well as what documents you will need to obtain it. If it turns out that the loan does not suit you in any way, you can ask the bank employee to choose the most suitable option for you or to refuse the loan;
4. Come to the bank branch with the necessary package of documents and apply for a loan.
How much does a relocation to a new city cost?
Change of residence even within the same city is a troublesome and costly business. And it is even more expensive if you need to transport your things somewhere far away. In order not to overpay, you must carefully plan all your expenses associated with the trip, transportation, settlement in a new place.
By the way, if your move is related to work, ask the future employer for assistance in this event. Sure, most of them are completely uninterested in the problems of their employees, but it is also true that many help the new workers in one way or another. Someone partially compensates for transportation costs (it is worth taking care of the availability of checks), someone offers a place to stay in for the first time (be sure to find out if there are conditions for the whole family).
So, before you take action, make an estimate of your expenses:
- services of a transport company – $400 to $3,000 or more;
- your transportation costs (tickets or gasoline) – several hundred dollars;
- expenses for temporary housing in a new place – $60 to several hundred dollars a night.
What should I avoid when looking for a relocation financing?
Having financial difficulties, do not rush to contact the first organization you come across. Carefully study the loan conditions in the contract, pay special attention to hidden payments, commissions and penalties. And only after that, take a deliberate decision.
Can I afford to take a relocation loan?
The availability of personal loans with many borrowers has already played a trick. Many people think that if the bank approved the loan, they should definitely take it. And few people think that this particular loan can be the very last straw, after which the family budget will begin to burst at the seams.
To prevent this from happening, carefully evaluate your capabilities. If you already have a mortgage, a car loan and a couple of credit cards, it’s probably worth giving up a new loan until better times. Add up your current liabilities and subtract them from your salary. If the balance is less than a third of this salary, a new loan is definitely contraindicated for you.
Also, our website provides detailed information about swimming pool financing and medical bills financing. Webmoneyloans is always ready to help you.
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