tommaso79 / Getty
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 for your travel purchases, such as airline tickets. Speaking of travel, you usually need a credit card to reserve a rental car.
Does this mean that it is impossible to rent a car without having a credit card? The short answer is: no, you can rent a car without a credit card. However, it is certainly more difficult rent a car without a car. But if you want to rent a car and you don’t have a credit card, here are the steps to follow.
1. Find a rental company that doesn’t require a credit card
First, you will need to research car rental companies that do not require a credit card for vehicle reservations. The good news is that most major car rental companies don’t require you to present a credit card at the counter. Here are some of the more popular companies that don’t require credit cards:
- Alamo
- Notice
- Budget
- Dollar
- Business
- Hertz
- National
Before making a reservation, it’s always a good idea to check that the rental company you want to use doesn’t require a credit card (and accepts a payment method you have, such as a debit card). Each car rental company has different payment rules, which may vary depending on your state, age, and the car you choose.
2. See what cars are available
When you don’t have a credit card, you may be limited in the types of cars you can rent. For example, high-end sports cars and even luxury SUVs may be excluded if you can only pay with a debit card. Since the rental company cannot guarantee a deposit without a credit card, there is more risk in letting you borrow an expensive car.
Fortunately, vehicles in the “economy” category (such as compacts and sedans) are generally available for rent without a credit card. These cars are also the least expensive and often have the best gas mileage, which can help you save money if you’re traveling on a budget.
3. Consent to a credit inquiry
If you rent a car without a credit card, chances are the car rental company will want to check your credit. Although your credit score and your driving record are not exactly linked, your credit score can give the rental company an indication of your liability. If your credit history shows a series of unpaid bills or overdrawn accounts, for example, this could indicate that you are a risky customer.
Simply put, car rental companies trust you to take care of their vehicle and return it safely. But they also know that accidents happen. As a result, the rental company wants to be sure that if something happens to the car – and you are responsible for it – you can afford to pay for the damages.
4. Pay a deposit
If you rent a car with a debit card or cash, you cannot post a traditional deposit. However, this does not mean that you will be exempt from a deposit. The car rental company may ask you to post a bond using another source of funds, such as a cashier’s check, personal check, or money order. When returning the vehicle, you will get the deposit back, assuming there is no damage and you have not exceeded your rental time limit.
Why do rental companies require credit cards?
If you’re wondering why most car rental companies require (or prefer) credit cards, there are several reasons.
When you reserve a rental car with a credit card, the rental company takes a deposit. This money is essentially frozen until the reservation is completed. If something happens to the car during the rental period, the company can easily recover that money; the deposit becomes a charge that appears on your monthly credit card statement.
However, you cannot deposit a deposit with a debit card in the same way. This would require the rental company to withdraw the money up front and then refund you later after you return the car. More importantly, if there are insufficient funds in your debit account, the rental company cannot recover any money if you damage the car.
Ultimately, it is less risky for car rental companies to lend vehicles to customers with a credit card, since the deposit can be easily recovered. When using a debit card, there are often more hoops to jump through as the rental company wants to make sure you can cover any potential damage. Otherwise, the rental company might end up paying for it.
What are the benefits of using a credit card to pay for a rental car?
It’s always a good idea to book a rental car with a credit card if you can. Using a credit card can give you access to a wider variety of cars, it can help you avoid unnecessary credit checks, and it makes the deposit process much easier.
Using a credit card to book a rental car can also help you earn rewards if you have a credit card with travel benefits, which can also be redeemed for discounted rental cars or free once you have enough points.
Can you pay for a rental car in cash?
Many car rental companies accept cash when you complete the final transaction, which takes place after the car is returned and your reservation is complete. However, you cannot make a deposit at the start of your reservation in cash. If you don’t have a credit card, you’ll need to deposit using another payment method.
Can you use a prepaid card to get a rental car?
When it comes to renting a car, using a prepaid card is like using a debit card. You probably cannot use a prepaid card to make a deposit for your reservation, even if you have sufficient funds in the account. However, you are allowed to use a prepaid card to pay for your reservation when you return the car.
Can we rent a car without paying a deposit?
It is highly unlikely that a rental company will allow you to borrow a vehicle without making a deposit first. Your deposit is the rental company’s financial safety net.
If you have no way to post a deposit, the rental company will not allow you to take the vehicle.
What is the cheapest car rental company that does not require a credit card?
Some car rental companies have cheaper rates than others, but it’s hard to determine which company is more affordable. The cost of a rental car depends on a variety of factors besides the company you choose, including the type of car, the length of the rental, and the type of insurance you choose.
You can usually get quotes online from the larger car rental companies, which can help you find the cheapest option.