Renting a car with your debit card generally implies renting with cash from the checking account linked to your debit card. If you damage the car, no credit line will be charged.
Because of the financial risk, several rental vehicle companies have strict rules for debit card transactions. Specifics differ from one Rental Company to the next, but here are some frequent tiny prints to look out for.
1. Requirement of age
Car rental companies frequently rent to drivers aged 21 to 24 with a credit card as long as they pay an underage fee. However, renting using a debit card may require a higher age restriction.
2. You may undergo a credit check.
Some rental companies may ask you to submit a credit check for debit card purchases. Before renting, establish whether a soft or hard credit check will be required. A rigorous credit inquiry may reduce your credit score by a few points.
3. You may have to present numerous types of identification.
Drivers who wish to hire a car using a debit card may be asked to produce a valid driver’s license, proof of insurance, and one or two other pieces of personal identification, such as a utility bill, passport, military ID, or shop membership card.
4. You may be billed upfront.
When you pick up your rental automobile, the company may request that you authorize payment from your bank account for the entire projected rental fee.
5. Your debit card may be put on extra hold by the rental company
Aside from authorizing your bank account for the expected rental fee at the time of pickup, some rental vehicle companies place a hold on your debit card for an extra amount as a security deposit. The quantity retained is at the discretion of the rental facility. It might cost hundreds of dollars, depending on the company and area you rent from.
You will not be able to utilize the blocked money until the hold is released, which often occurs after you return the automobile. If you use the same card to pay after the rental, the hold on your account may be removed in a few days. However, if you pay for the rental with another card, the hold may not be released for up to 15 days.
6. The rental vehicle agency may request a travel itinerary.
Depending on whether you rent from an airport or an off-airport location, rental companies may inquire about your travel plans and seek a trip travel ticket for an airline, boat, or train.
7. The kinds of cars you may rent may be limited.
When renting using a debit card, the rental agency may limit your options to particular types of vehicles, such as premium automobiles or convertibles.
If you are unable to use a debit card at the beginning of your rental, you may be able to pay with a credit card and then use your debit card when you return the car.
Benefits of renting a car using a debit card
No need to worry about interest; renting a car with a debit card means you won’t have to pay as much interest as you would if you used a credit card.
Do not contribute to debt; paying using a debit card means you will not incur debt. Even if you intend to pay off the rental price immediately, if you pay using a credit card, you may be tempted to carry the obligation forward to the next month.
Debit card use does not appear on credit reports; credit card use does and affects your credit ratings. Debit card use does not appear on credit reports, so while you cannot build credit with a debit card, swiping it will not have a direct negative impact on your credit.
Cons of hiring a car with a debit card
Less protection: debit cards do not often provide the same safeguards as credit cards, such as fraud liability and vehicle rental protection.
An account hold might deplete your cash; having an extra hold on funds in your checking account can be troublesome if it prevents you from using money immediately. If the debit card charges exceed the amount of money in your bank account, your card may be refused or you may be charged overdraft fees.
Debit card use does not reflect on credit reports; depending on your perspective, this might be a plus or minus. If you’re trying to establish credit, good credit usage can assist you, but debit card use won’t appear on your credit reports, so it won’t help you.
Conclusion
It is possible to hire a car with a debit card; however, several restrictions may make it challenging. It may be more convenient to pay with a credit card or cash from your bank account. Furthermore, responsible credit card use, such as paying off a bill before the due date, can help you establish credit in the long term.
