Without Credit Card South Korea Car Hire

What is Car Hire in South Korea Without a Credit Card?

South Korea is known for being a highly urbanised country, particularly in its cities such as Seoul, Incheon and Busan. However, it is also home to some fantastic hidden gems which lay slightly off the beaten track. And if you really want to immerse yourself in South Korean culture and discover these hidden gems, the best way to do so is by road.

It’s not uncommon for most major car rental companies to require you to have a credit card in order to rent a car. The primary reason for this is that a deposit is generally held on the credit card, and should anything go wrong, the deposit can be taken directly from the customer’s credit card.

Clearly, this can be an issue for those who do not have a credit card for a number of reasons – perhaps a poor credit history, no financial freedom or simply never having required one before. Nevertheless, there are still options available to those who wish to hire a car with alternative payment methods, such as a debit card or cash.

The article below will explain the various different methods available when it comes to renting a car in South Korea without a credit card.

What are the Benefits of Renting a Car in South Korea Without a Credit Card?

The booking process can be made much quicker and easier without a credit card than booking with a credit card. This is largely down to the fact that nobody needs to wait for a credit check to come through or fret about having enough money on your credit card to pay for the deposit in the first place.

In turn, this saves you a lot of time and stress, because you (should) know roughly how much is in your current account via your debit card at any given time, or you can simply check this figure via your mobile banking app.

What are the Common Policies for Car Hire in South Korea?

One of the most striking policies when it comes to car hire in South Korea is that drivers must be at least 21 years old before they are allowed to hire a car – this includes both South Korean nationals and foreign visitors.

However, for those who wish to drive a luxury car, the minimum age at which this is allowed is 26 years old. The definition of luxury is at the car hire provider’s discretion, although this generally includes sports cars and 4x4 vehicles.

Make sure that you are aware of this if you fall within this age range when opting to hire a car in South Korea.

What Alternative Payment Options Are Available for Car Hire in South Korea?

While most car rental suppliers in South Korea accept credit cards – some only accept credit cards – there are several other suppliers who accept alternative payment options.

So if you do not have the means to hire a car in South Korea with a credit card, there are different ways in which you can still hire a car.

For example, many suppliers will accept payment via debit card. It’s important to bear in mind that you may be charged an additional fee due to the exchange rate. The currency used in South Korea is the South Korean won, abbreviated to KRW, and its symbol is ₩. At the time of writing, £1 is equivalent to approximately ₩1753.

Some other companies may accept payment via cash, so if you carry enough KRW with you, you might be able to pay for car hire via cash. However, suppliers who accept cash payments for car hire in South Korea are few and far between, so make sure that you have another payment method lined up just in case.

Other companies have exclusive apps that customers can use to pay them instead of using a credit card, while some will accept bank transfers (although this is generally reserved for South Korean citizens, or those who have access to a South Korean bank account.)

While there are a range of alternative payment methods that are available in South Korea when it comes to car rental, it is important to realise that most car hire suppliers will only accept credit cards, rather than any alternative payment methods. However, do not worry – we will list some of the suppliers who accept alternative payment methods later in this article.

How Can You Rent a Car Without a Credit Card in South Korea?

If you are going ahead and renting a car without a credit card in South Korea, there are several things to consider, which will be discussed in this section.

Firstly, the fees that would normally be applied to your credit card (that is, the fees which include the deposit that would normally be held for the car hire), will instead be applied to your debit card or cash amount.

This means that a big chunk of money could come straight out of your current account, and only be returned upon the completion of your car hire period, providing that you returned the car in the same state that you hired it in. In addition, deposits can take up to 10-15 working days to be refunded to debit cards, so be aware of this if you have any upcoming bills or outstanding payments that are due.

Additionally, some companies may wish to take a fuel deposit. Like the deposit for the car, this will also be applied to your debit card, or taken from your cash amount.

This can sometimes amount to a large amount of money – anywhere upwards of £2000 (₩3.5m) in some cases, so be aware of this before committing to paying for car hire without a credit card, and make sure that you have sufficient funds to do so.

Where Can You Rent a Car Without A Credit Card in South Korea?

Some suppliers offer the ability to rent a car without a credit card in South Korea. Here are some of them listed below:

Sixt

Sixt is a big name in the car rental industry, and unsurprisingly, they are one of the few major companies that operate in South Korea and allow customers to hire cars without a credit card. Sixt accepts payments via debit card but does not accept cash payments.

Hertz

Another big name in the global car hire industry, Hertz also accepts payment via debit card for car rental at their South Korean locations.

Thrifty

Thrifty also allow car hire without a credit card, although similarly to Hertz and Sixt, the deposit must be paid via a debit card instead. In addition, debit card rentals through Thrifty are limited to smaller vehicles, so for those wanting a family-size vehicle such as a people carrier, SUV, or 4x4 or for those wanting a sports/luxury car, then you either must pay via credit card, or opt to go with an alternative supplier.

How Can You Rent a Car with a Prepaid Card in South Korea?

Some smaller companies in South Korea offer car rentals with prepaid cards, not too dissimilar to cards such as Revolut or apps like Monzo.

However, most of these companies are local South Korean companies rather than global brands, such as Jeju Angel Rental Cars, based on the small South Korean island of Jeju.

How Do You Rent a Car Using Cash in South Korea?

Unfortunately, no car rental suppliers in South Korea accept payments via cash.

Can I Use a Debit Card to Pay for the Security Deposit in South Korea?

The majority of car rental companies in South Korea require deposits to be paid via credit card, although some will take debit card payments for the security deposit.

However, as mentioned earlier, you must be conscious of the fact that the security deposit can be a large sum of money and can take anywhere from 10-15 working days to be refunded to your debit card. Making sure that you have sufficient funds to afford this is essential.

When Should You Consider Renting a Car Without a Credit Card in South Korea?

If you do not own a credit card, or the main driver in your party does not, then exploring alternative payment methods should be undertaken, and look for companies who accept payment via debit card instead.

Why Do Some Car Hire Companies in South Korea Require a Credit Card?

As with most forms of deposit, whether for a hire car or a wedding supplier, the reason for the deposit is security on behalf of the supplier. A credit card essentially acts as a safety net for the rental company.

Firstly, this is because it means that the customer has enough money to pay for the deposit (the minimum limit on most credit cards is £1000, or ₩1.75m) which gives you an idea of how much most credit cards have on them.

Additionally, transactions via credit card are much easier to trace (and refund) than transactions on debit cards, especially transactions via cash, which are often impossible to trace.

Why Is It Important to Understand Security Deposits?

Being able to understand security deposits is an essential part of the car rental process, as they protect both the rental company and the customer who is renting the vehicle.

Security deposits protect the rental company because they are easy to refund, or take from, should any damages happen to the vehicle. For the customer, a large amount of money being held encourages safe driving, so that they can receive their full deposit back.

Why Should You Check Local Policies and Restrictions?

Always check with individual companies before committing to renting a car in South Korea without a credit card. The last thing you want to happen is to fly all the way to South Korea, disembark the plane, only to find out that you need a credit card in order to hire a car – and you’ve left yours at home. Always check with local suppliers too, as they are generally more flexible with payment options than multi-national corporations.