Moving to a new city can be expensive especially if you are moving long-distance or cross country. Moving can even become more difficult if you are not financially buoyant and you still have bad credit on top of that. What that means is that you might not be credit worthy and to get a loan to finance your moving expenses can be difficult.
To relocate or move to a new city with bad credit requires proper budgeting and financial planning so that you can maximize resources at your disposal. One of the best things to do if you are working on a lean budget is to get as many quotes as possible from moving companies around you or you visit the websites of these companies to make use if their moving cost calculator, compare the quotes and make an informed decision on which of them you will hire.
Having bad credit can affect a whole lot of things in your life. Relocating or moving is one of the areas that can be affected. Your credit can have a significant impact on how and what you need to do to relocate from your present home to a new city. You might be unable to rent a moving truck, and this might even make your move even more expensive as you might have to take out a bad credit loan such as a payday loan with very high-interest rates.
Bad credit should not define who you are knowing full well that life has a way of throwing us off the balance with unexpected occurrences that can affect one’s financial plans and make individuals become cash trapped.
Credit Score and the Highest Credit Score Possible
Let’s quickly take some time to explain the credit score and what the perfect credit score means. Credit scores are broken into ranges such as poor, fair, good, very good, and excellent. We take a look at each of the ranges.
- Poor Credit Score: A poor credit score below 580.
- Fair Credit Score: A fair credit score is a score between 580 and 669.
- Good Credit Score: A good credit score is a score between 670 to 739.
- Very Good Credit Score: A very good credit score is anything between 740 and 799. This range is just good enough to put you in a good position to negotiate favorable deals when you need to take out loans.
- Excellent Credit Score: An excellent credit score is any score from 800 and above. With this can of the score, you can get the best interest rates and negotiate favorable terms when you wish to get a loan. Even banks would be happy to lend you money because they will see you as a low-risk borrower.
However, the good news here is that despite your bad credit, there are still ways out to ensure you move to a new city without any difficulty. We will be providing you with some of the important tips that can help you move seamlessly to a new city regardless of your bad credit.
Best tips to move to a new city with bad credit
Below are some of the important tips that can help you to move to a new city even with your bad credit.
Avoid moving at peak periods
One way to cut your moving cost if you are working on a lean budget is to avoid moving during the peak period. The best time to move is during the off-peak period (early fall and winter) to save more on your moving cost. The off-peak period is usually before the start of a school year, this falls between September and April; moving demand during this period is on the low. Another advantage of moving during off-peak season is that rent at this time is cheaper and more affordable as there are fewer demands for homes and landlords are eager to cash in on rent. If you can save enough on your moving costs, you will have enough cash left to fix your credit.
Rent first and buy later
Rent is an ideal idea since it is not always easy to get a mortgage with bad credit. Renting first before buying a home, will give you more flexibility, it will also make it easier for you to relocate to a new city if things do not work for you. Budget enough for utility bills as these bills are not included in your rent.
Get recycled boxes
You can buy recycled boxes to package your belongings, used or recycled boxes are cheaper and will not cost you much. You can even sell the boxes once you have finished using them. You can also get these boxes free of charge by asking friends and families who recently moved or who may have boxes they no longer need. Other places to source for boxes include stores, bookstores, and pharmaceutical shops among others.
Get rid of items you no longer need
As you prepare and pack items to be moved, look out for items that can be additional luggage that will be of no use to you in your new home. Get rid of these items. Doing this will reduce the volume of items to be moved and you will be able to safe enough money in the process. The more items you can get rid of, the lower your moving cost.
Transfer your balance to reduce interest
This is one easy way to improve your bad credit. There are some credit card companies that offer 0% interest rate if you transfer credit from one of your accounts to theirs. Doing this will drastically reduce your interest and you will be able to make monthly payments without much difficulty. This system works for both small and large debts.
Pay more than the minimum balance on your credit
One sure way to get rid of your bad credit is to pay off your debts. In order to take a big step towards paying off your debts, consider paying more than the minimum balance on your credit card statements every month. If you do this on a regular, you will pay off your debts in no time and you will become creditworthy faster than you can ever imagine.
Ask for Help
Do not hesitate to call on your friends and family members who can help you with packing and loading on your move date, this can go a long way in saving you moving costs. Just give them a direction on how you want the job to be done and offer little incentives in the form of light refreshment.
Use a co-signer
If you want to find your way around paying high-security deposits when you want to move, you can ask a relative or a close friend with good credit to cosign. Your cosigner will be held liable for the debt if you are unable to pay off the debt. Having someone as a co-sign can help you in easily getting financial aid and also put you on a good negotiating stand.
Find privately owned apartments
Houses managed by professional management companies will carry out credit checks and with your bad credit, you might not stand a chance in this kind of scenario. Hence, the ideal thing to do is to source for privately owned apartments s that you can bypass certain stages of scrutiny that you might undergo if you go for houses managed by professional management companies. You can check local classified ads for apartments that offer flexible credit terms. When you apply to rent a house from private owners, they can understand your situation better and thus offer you more flexible terms that can accommodate your lean budget. While looking for a house to rent, avoid renting through real estate companies because they have minimum credit score requirements.
Get movers with flexible payment plans
If you are unable to finance your moving expenses, you can look for movers that offer flexible payment plans over a period of time. Use their moving cost calculator to see how much you will incur over a period of time. Although, most of these moving companies will require a minimum down payment, and you can spread the remaining payment over time by agreeing to an automatic draft monthly payment from your bank account. You can also skip hiring a mover by renting a truck but you will have to do the packing and loading by yourself. You will arrange all logistics in transporting your belongings to your new home in this case. In this case, you will only need to pay for the truck and the gas.
Frequently Asked Questions
Why would my credit even matter when I’m moving?
You want to be certain that you’re able to get into the home or apartment that you want to live in. On top of that, you are also going to need to work out some sort of contract or payment plan with your moving company. In both situations, your credit score may be explored, and if it’s not good, you may have a harder time getting the resources you need.
How can I fix my credit?
There are credit counselors that can help you to sort out everything about your credit and help you to put together a plan that will fix it. Paying off credit, catching up on bills, and other positive financial interactions can also help with your credit score.
Are there home loans for people with bad credit?
Absolutely. There are a number of different companies out there who are willing to work with you, even if your credit score isn’t as good as it could be otherwise. You’ll have to research a little in order to figure out which ones you’re eligible for and if they’re right for your purposes and the house that you’re thinking about purchasing.
Just because your credit isn’t great doesn’t mean that you can’t find a great apartment or take care of your moving needs properly. Look into the options we’ve discussed here, work with friends and family members, and get ready for the move that is going to change your life and future.