How to Rent A Car With A Credit Card

Renting a car with a credit card is standard practice, but the process involves more than just swiping plastic. Following these steps can ensure a smooth and secure rental experience.

1. Check Requirements: Before booking, review the rental company’s policies. Confirm they accept your card type and check your available credit to cover the rental cost and a potential security deposit hold.
2. Choose the Right Card: Select the best card for the job. Some cards offer primary rental car insurance, saving you money, while others provide travel rewards. Use a resource like Kudos' Explore Cards tool to find a card that fits your needs.
3. Make the Reservation: Reserve your vehicle online or by phone. You will need to provide your credit card details to hold the reservation, but the card is not typically charged until pickup.
4. Present Card at Pickup: You must present the physical credit card used for the booking at the rental counter. The agency will place a temporary hold on your card for the estimated total plus a security deposit.
5. Finalize Payment: After returning the vehicle, the rental agency calculates the final charges. The initial hold is released, and the final amount is charged to your credit card.

Impact On Your Credit Score

Using a credit card for a car rental can influence your credit score in a few key ways. Here are the primary factors to consider before you book your vehicle.

• Credit Utilization Ratio. The rental hold places a temporary authorization on your card, increasing your credit utilization. This can briefly lower your score, so it's wise to keep your overall balance low to minimize the effect.
• Hard Inquiries. Some rental agencies might run a hard credit check, particularly if you opt to use a debit card. This inquiry can cause a minor, temporary dip in your credit score.
• Payment History. Paying your rental bill on time positively impacts your payment history, a crucial component of your credit score. Conversely, any late payments can cause significant damage to your credit standing.

Alternative Ways To Rent A Car

Using a Debit Card

While credit cards are the standard, many major rental agencies accept debit cards. This alternative often comes with additional requirements. Renters may be subject to a credit check at the counter and are typically required to provide proof of a round-trip travel itinerary. Furthermore, the security deposit held on a debit card is usually larger than the hold placed on a credit card. It's crucial to check the specific location's debit card policy in advance to ensure a smooth process.

Prepaid and Cash Options

Securing a rental with a prepaid card or cash is less common but may be possible with certain companies. This route almost always involves stricter verification and a significant security deposit. Some agencies might only permit cash for the final payment rather than the initial hold. Given the variability in policies between different branches, even within the same company, you should always call the specific rental office directly to confirm if they accommodate these payment methods.

Choose the Right Card to Rent A Car

Before you book that rental, ensure you're swiping the right plastic. With thousands of cards out there, picking one that offers the best rental insurance or travel rewards can feel overwhelming. Kudos simplifies the search with its Explore Tool, a personalized engine designed to help you compare features and find your next credit card based on what matters most to you.

If you want to get the most from your cards, Kudos is the premier free shopping assistant for your online purchases. We're also giving you $20 back on your first eligible buy—just sign-up for free with code "GET20" and shop at a Boost merchant.

Frequently Asked Questions

What kind of credit card do I need to rent a car?

Most agencies require a major credit card like Visa, Mastercard, or American Express. Debit cards are often not accepted.

Will a hold be placed on my credit card?

Yes, rental companies place a temporary hold on your card as a security deposit for potential damages or fees.

Does my credit card include rental car insurance?

Many credit cards offer rental insurance as a benefit. Always confirm the specific coverage details with your card provider.