Do You Need a Credit Card to Rent a Car?
6 Min Read | Published: August 5, 2024
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
While you may be able to rent a car without a credit card, this will depend on the car rental company’s policies, and certain limitations may apply.
At-A-Glance
- Different rental car companies have different payment policies. Typically, all major car rental companies accept credit cards, but some may also accept debit cards.
- However, there may be limitations when using a debit card. Some car rental agencies may not allow you to rent luxury vehicles or SUVs with a debit card.
- Using a credit card to rent a car could streamline the car rental process. Depending on the card, it may even give you access to benefits such as certain types of car insurance and fraud protection, as well as the chance to earn rewards.
If your travel plans include renting a car, then you may be wondering if you need a credit card to pay for it. The answer is that it depends on the car rental company’s policies. In some cases, a credit card may be required to cover the cost of a rental car, and typically, using a credit card can streamline the car rental process. However, in some cases, you may be able to use a debit card to rent a car. In this article, we’ll dive deeper into whether you need a credit card when renting a car and highlight important considerations to keep in mind.
Credit Card Requirements for Car Rentals
Typically, you can use a credit card to pay for a car rental. However, some car rental agencies may allow you to use other forms of payment, such as debit cards. However, this will vary depending on the car rental agency. Cash, on the other hand, isn’t normally allowed.
If the car rental agency does accept debit cards, you may face a few additional steps, including:1
- An Additional Deposit
The car rental company might charge you an additional deposit on top of the rental fee. This may involve placing a hold on funds in your account. - Extra Identification
This may include your driver’s license or passport that confirms your identity. - Proof of Insurance
You might need to show that you meet the car insurance requirements in your state. - Proof of Return Travel Plans
The rental agency might ask for a receipt or confirmation of a return flight. - Credit Check
You may have to undergo a hard credit inquiry, which can temporarily lower your credit score.
Important Considerations When Renting a Car Without a Credit Card
While some rental car agencies may allow you to rent a car without a credit card, not all do, and the rules vary. For example, some may allow you to settle a bill with a debit card but may require a credit card at pick-up. Keep in mind that a company’s policies may also vary depending on the branch location, so be sure to inquire about the policies at the specific location where you’re planning to rent the car.
In some cases, car rental agencies will require a credit card for certain types of cars, such as Sports Utility Vehicles (SUVs), premium, or luxury cars.
Before you head off on your trip, be sure to familiarize yourself with the company’s payment policies.
Benefits of Renting With a Credit Card
Paying for a rental car with a credit card can offer a few distinct benefits. You won’t need to worry about whether the car rental agency will accept the card or not, and you may have more options when renting a car with a credit card.
Here’s a look at a few more benefits of renting a car with a credit card:
- No Credit Check
If you rent a car and pay for it with a debit card, you may be required to undergo a credit check. If you pay for a rental car with a credit card, you won’t have to worry about this. - Your Credit Card May Offer Rental Benefits
Depending on the credit card you use, you may have access to certain benefits when you rent a car with certain car rental companies. For example, you might receive rental car insurance.2 - You May Earn Rewards or Cash Back
Some credit cards will reward you for making travel purchases, such as rental cars. Paying with a card can lead to cash back or other reward points, depending on your credit card.3
How to Find the Right Credit Card for You
If you’re in the market for a credit card to pay for a rental car, these tips can help you find one that’s a great fit for your needs.
- Check Your Credit Score
First, find out where you stand credit-wise. You can use a free credit monitoring service or reach out to your bank or financial institution to do so. Note that if you have poor or fair credit, you may have fewer options than someone with good to excellent credit. - Figure Out What Type of Card You Want
There are a number of credit card options available today, so you’ll want to find one that fits your needs best. If you’d like to get money back on eligible purchases made each month, then a cash back credit card could make sense for you. On the other hand, if you tend to travel regularly and want to earn points that can be redeemed on travel purchases, then a travel rewards credit card could be a good option. - Compare Credit Cards
Once you know what type of credit card you’re looking for, it’s time to shop around. It’s a good idea to compare interest rates, fees, rewards structure, welcome offers, and other features and benefits. - Apply for a Credit Card
Now, it’s time to apply for the credit card you’ve chosen. Typically, you can go through the application process on the card issuer’s website. In some cases, you may be able to check to see which cards you prequalify for, with no need to have a credit check. Once you accept the card, and choose to move forward with your application, then a credit check may be done at that time. Note, however, that this process will vary, depending on the credit card issuer.
Frequently Asked Questions
Depending on the card you use, it may be less expensive to rent a car with a credit card. This is because you might earn rewards and, in some cases, may be able to forgo extra costs, such as rental car insurance.5
Most car rental agencies will require a hold of $200 or more. Check with the car rental company to determine what their hold fee is before you rent with them.6
Many credit cards do require good to excellent credit. However, even if you don’t have good credit, you may still be able to get approved for a credit card you can use for car rentals.7
The Takeaway
Whether or not you need a credit card to rent a car will depend on the car rental company and their policies, including the individual branch location’s policies. A credit card may also be required for certain vehicles. If you prefer to use a debit card, be sure to check the car rental agency’s requirements ahead of time, and be aware that you may have to place a deposit on your debit card, or undergo a credit check.
1,6,7 “Can You Rent a Car with a Debit Card?,” Bankrate
3 “Do You Need a Credit Card to Rent a Car?,” Yahoo Finance
2,4 “Why Credit Cards are Best for Car Rentals,” U.S. News
5 “Debit or Credit Card: Which to Use for Car Rentals,” Investopedia
Anna Baluch is a personal finance writer from Cleveland, OH. She enjoys helping people from all walks of life make smart financial decisions. Her work can be seen on Credit Karma, Forbes, LendingTree, Insurify, and many other publications. Connect with Anna on LinkedIn.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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