Most Americans have at least one credit card, and there are many benefits to having one. Some credit cards offer cash back in certain categories, while others help you earn rewards on travel like airline tickets. When it comes to travel, you usually need a credit card to book a rental car.
Does this mean you can't rent a car without a credit card? The short answer is no, you can rent a car without a credit card. However, it is definitely harder to rent a car without a car. However, if you want to rent a car but don't have a credit card, here are the steps you need to take.
1. Find a car rental company that doesn't require a credit card
First, you need to look for car rental companies that do not require a credit card to book a vehicle. The good news is that most major car rental companies don't require you to show your credit card at the counter. Here are some of the most popular companies that don't require a credit card:
- Avis
- Poplar
- budget
- National
- Enterprise
- Dollar
- Hertz
Before booking, though, it's best to make sure the rental company you plan to use doesn't require a credit card (and will accept your payment method, such as a debit card). Each rental car company has different payment rules that may vary based on your state, your age and the car you choose.
2. See what cars are there
If you don't have a credit card, the types of cars you can rent may be limited. For example, a high-end sports car or even a luxury SUV might not work if you can only pay with a debit card. Since car rental companies can't get a deposit without a credit card, the risk is higher if you rent an expensive car.
Fortunately, vehicles in the “economy” category, such as compacts and sedans, can often be rented without a credit card. These cars are also the cheapest and usually have the best gas mileage, so if you're on a travel budget, you can save some money.
3. Agree to a credit check
If you rent a car without a credit card, the rental car company may want to check your credit. Although your credit score and driving behavior are not strictly linked, your credit score can give rental companies a sense of your responsibility. For example, if your credit history shows a series of unpaid bills or overdraft accounts, it may indicate that you are a risky customer.
In short, the rental car company trusts you to take care of your vehicle and return it safely. But they also knew accidents would happen. So rental companies want to make sure that if anything goes wrong with the car, you can afford to pay for the damage – and you're responsible for it.
4. Deposit to deposit
When renting a car with a debit card or cash, you cannot leave a traditional security deposit. However, this does not mean that you will be released from the deposit. The rental car company may require you to put the deposit into another source of funding, such as a cashier's check, personal check, or money order. When you return the vehicle, you will receive a deposit, provided no damage has occurred and you have not exceeded the lease term.
Why do landlords need a credit card?
If you're wondering why most rental car companies require (or prefer) a credit card, there are several reasons.
If you book a rental car with a credit card, the rental car company requires a deposit. The money is basically frozen until the end of the reservation. If something goes wrong with the car during the rental period, the company can easily get the money back; the deposit becomes a charge on your monthly credit card statement.
However, you cannot make deposits the same way you can with a debit card. This will require the car rental company to withdraw money early and refund it to you after you return the car. What's more, if you damage your car, the rental car company won't be able to recover any money if you don't have enough funds in your debit account.
Lastly, car rental companies are less risky to lend a car to a customer with a credit card because the deposit is easy to get back. When you use a debit card, there are often more hurdles to overcome, as rental companies want to make sure you can cover any potential damage. Otherwise the landlord can pay.
What are the benefits of paying for a car rental with a credit card?
It's always a good idea to book a rental car with a credit card if you have the chance. Using a credit card allows you to use a wider range of cars, it helps you avoid unnecessary credit checks, and makes the deposit process easier.
Using your credit card to book car rentals can also help you earn rewards if you have a credit card with travel benefits, which can also be redeemed for discounts or free car rentals once you earn enough points.
Can I pay in cash for a rental car?
Many rental car companies will accept cash at the end of the transaction, i.e. after you return the car and the reservation is closed. However, you cannot pay a cash deposit at the beginning of the reservation. If you don't have a credit card, you'll need to deposit using another payment method.
Can I rent a car with a prepaid card?
When it comes to renting a car, using a prepaid card is like using a debit card. Even if you have sufficient funds in your account, you will most likely not be able to use your prepaid card to pay the deposit for your reservation. However, you can pay for your reservation with a prepaid card when you return the car.
Can I rent a car without a deposit?
It is unlikely that the rental car company will lend you a car without putting down a deposit first. Your bond is a financial safety net for the landlord.
The rental company will not allow you to take over the vehicle if you do not have the opportunity to pay the deposit.
What is the cheapest car rental company that doesn't require a credit card?
Some car rental companies are cheaper than others, but it can be difficult to determine which company is the cheapest. The cost of renting a car depends on a number of factors, in addition to the company you choose, the type of car, the length of the rental, and the type of insurance you choose.
You can usually get online quotes from the largest car rental companies and they can help you find the cheapest option.
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