Paying for a Move: Mover Estimates, Options and Loans

Get the price in writing first

The Federal Motor Carrier Safety Administration (FMCSA) regulates household-goods movers that carry your belongings from one state to another. Its booklet Your Rights and Responsibilities When You Move, which an interstate mover must give you, says the mover has to provide a written estimate for every shipment. A price quoted over the phone is not an estimate. The estimate should rest on a survey of your things, in person or by video, unless you give up that survey in writing, and both you and the mover sign and date it.

The type of estimate decides how much you need to borrow, if anything. With a binding estimate you know the number. With a non-binding one, plan for the estimate plus a margin, and remember that a second bill can follow a month after delivery. No federal booklet gives a typical price for a move, so this page does not either; your own written estimates are the figures to work from.

Cheaper ways to cover the bill

Before you take on a loan, look at what can shrink the bill or pay part of it without interest.

• Relocation help from your employer. If the move is for a new job, ask before you accept the offer whether the company pays movers directly or reimburses you, and whether you must pay that money back if you leave within a set period.
• Several written estimates. Ask at least two or three movers for a survey-based estimate of the same inventory, so the prices compare like with like.
• Doing part of the move yourself. Packing your own boxes, selling furniture you would otherwise ship, or renting a truck for the lighter load can reduce the weight a mover charges for.
• Savings and timing. If the move is two or three months away, setting aside part of each paycheck can cover a share of the cost and lower the amount you borrow.
• A credit union loan. Credit unions often make small personal loans to members; compare their APR with other offers as described in where to borrow.

A card with a 0% introductory rate on purchases can also bridge a short gap, but only if you can clear the balance before the regular rate starts. Check that rate and the date it begins before you charge the move.

When a personal loan fits a move

A personal loan suits a move when the costs come before the money: the mover, a security deposit and first month's rent at the new place, and travel, all due before the first paycheck from a new job. Its fixed payment and fixed end date are easier to plan around than a card balance.

It fits less well when the gap is small enough to close from savings within a month or two, or when the payment would strain a budget that already has to absorb higher rent. Work out the payment at the term you can actually afford, using the loan term calculator, before you apply.

A worked example: $5,000 for a move

Suppose your binding estimate and deposits leave a $5,000 gap. A lender offers 16% for 24 months with a 4% origination fee taken from the loan. These figures are a worked example computed with the standard amortization formula, not an offer from any lender.

The fee means you receive $4,800, not $5,000, and it lifts the APR from 16% to 20.22%. If you need the full $5,000 in hand, you would have to borrow more, which adds to the payment. The net loan proceeds page shows how to size a loan when a fee is deducted.

What to watch for before moving day

FMCSA lists warning signs that a mover may not be honest. Several of them touch the money directly:

• The mover gives a price by phone or online without looking at your belongings, or will not put the estimate in writing.
• It wants cash or a large deposit before the move.
• It asks you to sign blank documents, or does not hand you the rights booklet.
• On moving day it claims you have more belongings than estimated. FMCSA advises requiring a new estimate that you both sign before packing and loading begin.

Check how your goods are protected. Under the released-value option, the booklet says the mover is liable for no more than 60 cents per pound per article, so a light but valuable item is barely covered. Full Value Protection costs more and can be waived only in writing.

1. 1 Look the mover up in FMCSA's search for a registered mover before you sign or pay a deposit.
2. 2 Keep the estimate, the bill of lading and the inventory; FMCSA's complaint form asks for them.
3. 3 If something goes wrong, file a complaint at complaint.fmcsa.dot.gov or call 888-368-7238. FMCSA says it cannot resolve claims against a mover for you, so also follow the mover's claims process.

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