How to rent a car without a credit card

Can you rent a car without a credit card?

• Generally, companies won’t accept recharge or top-up cards, virtual credit cards or cards without embossed characters
• Some car rental agencies allow car rentals with debit cards
• Some companies raise the minimum rental age for debit card users to 25 years old, even if the credit card minimum is 21

If you’re planning to rent a vehicle for your next trip, you might find that many rental companies ask you to pay for the refundable security deposit using a credit card. This article explains why and what your options are if you don’t have a credit card or prefer a different payment method.

The big debate: Credit cards over debit cards

Car rental companies have a few reasons for preferring drivers to use credit cards when paying damage deposits. For example, if a rental car is involved in an accident and is damaged, the repair may cost more than the damage deposit. Similarly, if you get a ticket or a fine for not paying a toll, it may take months for these fines to reach the rental company.

If you paid for your damage deposit with a debit card, the rental company may worry about the availability of sufficient funds. But if you pay using a credit card, the rental company can be more confident that they can access the funds. Credit cards allow or any potential costs to be ‘held’ until the agreement is complete, rather than taken immediately from a debit account.

Accepted and unaccepted methods of payment

Most rental companies accept Visa and Mastercard, but payment methods vary depending on which company you rent with.

Generally, companies won’t accept the following types of credit cards:

• Recharge or top-up cards
• Virtual credit cards

• Cards without embossed characters

If you’re unsure which card type your rental company prefers, check their website. Companies post their terms and conditions for any deposit and payment information online.

Understanding the payment process

Rental companies often accept debit cards for the initial rental payment but need damage or security deposits to be paid using a credit card. Often, the name on the credit card needs to match the name of the main driver and the name on their driver’s license. That’s because the main driver accepts legal responsibility for the vehicle when signing the rental agreement.

Renting a car without a credit card

If you don’t have a credit card, here are a few ways you can rent a vehicle:

1. Car rental with a debit card: Check the T&Cs before booking to find out which rental companies accept debit cards as payment for your damage deposit.

2. Book with a friend: If your travel companion has a credit card and is legally able to drive, designate them as the main driver on your booking and list yourself as a secondary driver. Keep in mind that you may have to pay some additional charges.
3. Opt for extra insurance coverage: Most rental companies offer additional insurance coverage. Costs vary between companies, but this often means you don’t need to pay a damage deposit upfront.

What to know about renting a car with a debit card

Renting a car without a major credit card is possible, but rules can vary based on rental companies and the specific branch location. Rental agencies prefer credit cards because they can place a secure, temporary "hold" for the deposit without deducting actual funds, and they can easily charge the card for post-rental costs like tolls or damage.

If you’ve only got a debit card, you should prepare for extra requirements and potential holds on your bank account.

• Check with the company: Ask directly about their current debit card policy, as rules often vary even within the same company.
• Book ahead: Some major companies require debit card rentals to be booked at least 24 hours in advance to give them time to run necessary checks.
• Stricter identification: Be ready to present more than just your driver's license. This could include a second form of photo ID (like a passport), a current utility bill that matches the name and address on your license, or your most recent paycheck stub.
• Age restriction: Some companies raise the minimum rental age for debit card users to 25 years old, even if the credit card minimum is 21.
• Provide proof of return travel: If you are renting at an airport location, you are almost always required to show a ticketed return travel itinerary (e.g., a flight, bus, or train ticket) that coincides with your rental dates. This proves you are not a local resident attempting to circumvent credit checks.
• Cover the security deposit: The rental company might place a mandatory security deposit (plus the full cost of the rental) as a charge or an authorization hold on your debit card.
• Impact on funds: Unlike a credit card hold, a debit card authorization will immediately reduce your available bank balance by that amount. This hold can take 7 to 15 business days to be released by your bank after the car is returned, even if the rental company releases it immediately. Ensure your bank account has sufficient available funds to cover both the deposit and your travel expenses.
• Be flexible on vehicle type: Debit cards are often not accepted for reservations of premium, luxury, large SUV, or specialty vehicles. Plan to rent a compact or mid-size car.

Pro tip: When using a debit card, make sure it’s a Visa, Mastercard, or Discover with the main driver's name embossed on it. Prepaid cards are usually not accepted as security identification.

Opting for additional insurance coverage

Rental agreements usually come with three basic coverage types – damage coverage for collisions, theft coverage if the vehicle gets stolen and third-party coverage for damage caused to another vehicle.

Most companies ask if you’d like to opt for additional coverage that covers damages deemed more significant, like damage to the engine, transmission or windows. It’s up to you to decide if you want this extra coverage.

Interest rates and damage deposits

Once you’ve paid for your rental vehicle, companies often “hold”, “block” or “pre-authorize” your deposit. This means that the damage deposit amount is taken from your total credit allowance, and any interest fees are removed.

Contact your credit card company for assistance if you’ve been incorrectly charged.