Without Credit Card Car Hire

What are the benefits of renting a car without a credit card?

No transfer of money: If your credit card is full, then it can take a while to transfer money to your credit card. Additionally, your credit card might not have room for the car rental payment and the deposit.

No additional charges: Car hire deposits can be quite lofty, usually around the £1,000 mark. That can be quite a hit for your credit card, and might even max it out. If you’re renting a car for a significant time period, and you have multiple payments going out of your credit card, you might hit the max, or even over your maximum allowance. If that happens, you might be charged additional fees.

No interest: Depending on your credit card agreement, you might pay a high amount of interest by going further into credit. Debit cards are interest-free and linked directly to your bank account. Knowing exactly what’s in your bank account, and all the goings out, means you can easily keep an eye on your finances and budget accordingly.

What are the common policies for car hire?

Deposit payment: It’s commonplace for car hire companies to require a deposit. You will get it back once the car has been returned, provided the vehicle is in the same condition as it was on pick-up. If there are any issues with the vehicle, a portion of the deposit will be recovered by the car hire company.

Fair fuel policy: Most car hire companies require customers to return the vehicle with the same amount of fuel as upon pick-up. This is usually a full tank, but if the tank isn’t full, take a picture of the meter. This avoids paying for an inflated amount upon drop-off (usually deducted from the security deposit refund) or stops you from overpaying for petrol if you fill the tank.

The fair fuel policy also protects the customer, as some car hire companies will ask the customer to drop off the car with a full tank, even if it’s empty when they pick it up. At Enjoy Travel, we only work with companies that have a fair fuel policy.

Mileage: Most car hire companies have a mileage limit. An additional charge might be deducted from the security deposit if you exceed it.

What alternative payment options are available for car hire?

If you don’t have a credit card, you can use a debit card or a pre-paid debit card to pay for rental. Most car hire companies will accept all major debit cards, such as Mastercard, Visa, HSBC, Lloyds TSB, and others.

How can you rent a car without a credit card?

If you’ve lost your credit card, have an insufficient credit limit, or simply don’t have a credit card in your name, don’t worry – you can still rent a car. You can pay for the rental with a debit card or pre-paid card. You might still need a credit card with a sufficient credit limit for the deposit, though. The car hire company might require you to pay for their additional coverage, even if you’re already covered.

How can you rent a car with a prepaid card?

Some car hire companies permit you to use a prepaid card to rent a car if you don’t have a credit card in your name. A prepaid card is preloaded with cash that isn’t linked to your bank account. They’re popular when travelling abroad. You can top them up online, in person, or via bank transfer.

Companies have varying policies, for example, Hertz accepts prepaid cards if it is presented at pick-up, while Budget accepts prepaid cards for payment at the end of the rental period. In all cases, the name on the card must match the primary driver. You might still need to present a credit or debit card when picking up the car. We recommend looking into your chosen car hire company’s specific policy on this.

Can you use crypto to pay for car rentals?

Some car hire companies let customers pay with crypto, such as OK Mobility. The OK Mobility fleet is ultra-modern, with luxurious vehicles like the latest Land Rover Evoque, BMW X4, and BMW Series 1. There are also regular vehicles in the fleet, such as the Seat Ibiza. If you want to pay for car hire with crypto, OK Mobility are available across Europe, including Munich, Madrid, Barcelona, Lisbon, Milan, Rome, and more.

Can I use a debit card to pay for the security deposit?

Most car hire companies require a credit card for the security deposit. However, some companies accept debit cards. There are usually certain requirements, such as vehicle type, so be sure to read the terms and conditions. Bear in mind that while you might be permitted to book and pay for the car rental with a debit card, you might still need a credit card in your name for the security deposit. Be sure to clarify this beforehand. If you don’t have a credit card, you can sometimes pay for additional coverage with the car hire company.

When should you consider renting a car without a credit card?

Credit cards protect you when making big purchases. Generally, we recommend using a credit card for car rentals and security deposits. But sometimes, this isn’t an option. Here’s when you should consider renting a car without a credit card:

If you don’t have other options: No credit card? No problem. There’s no need to apply for one just to hire a car. You have options: pay with a debit card, pay with a prepaid card, or take out additional insurance with the car hire company. Shop around and pick a car hire company that lets you rent a car without a credit card.

The spending limit on credit cards is too tempting: Credit cards can be an excellent way to boost your credit score, protect you when making large payments, and for interest-free borrowing – but these benefits only apply if you regularly pay off your credit card. You must also have the willpower not to spend sensibly and not max out your credit limit.

If you don’t have enough credit limit: Depending on your credit limit agreement, your credit card might have insufficient funds to cover the payment. If that’s the case, the security deposit won’t go through.

If you have high interest rates on your credit card: When putting your credit card down for the car rental deposit, the deposit amount won’t actually be taken out. It’s put on hold in case something happens to the vehicle. This means that the hold money is blocked, so you can’t spend that amount – it might show up in ‘pending transactions’. It shouldn’t affect your interest rates. However, if there are traffic fines or any damages to the car, then a portion of the hold deposit will leave your account. If you have high interest rates and don’t want to risk the possibility of this happening and being charged, then you could consider renting without a credit card.

If you want to avoid international transaction fees: Depending on your credit card provider, you might be charged an international transaction fee if you hire a car abroad. The rate of this fee differs. You might also be charged for currency conversion, too. Be sure to check your credit card’s international transaction fee before booking your rental.

Why do some car hire companies require a credit card?

Most car hire companies prefer customers to use credit cards because it’s a level of security that protects them. Not only does it show that you’re not a financial risk, but it also means that the company can recover part or all of the deposit in the case of damage or traffic fines. It’s essentially a safety net for car hire companies. Debit cards are linked to bank accounts, and if a bank account has insufficient funds, they can’t recover the deposit money.

Why is it important to understand security deposits?

Security deposits are a big chunk of money. They’re security for the car hire company, protecting them in case anything goes wrong. Security deposits are not directly taken from your account, but they are put on hold so that you cannot spend that money. In the case of damage or fines, a portion (or all) of that money will be removed from your account. Security deposits are usually upwards of £1,000, so it’s important to understand exactly what they include.

• Damage: If the vehicle has been scratched, dented, or damaged in any other way, the repair costs will be deducted from the security deposit.
• Cleaning charges: If the vehicle needs to be cleaned after drop-off, this will also be deducted from the deposit.
• Fuel: The fair fuel policy means you must return the vehicle with the same amount of fuel as you picked it up with.
• Contract breaches: This includes delays in dropping off the vehicle, exceeding the mileage, and if you take the car overseas without clearing it with the company first.

If the vehicle is returned in the same condition, the deposit will be refunded. This generally takes between 1 and 10 days.

Why should you check local policies and restrictions?

It’s important to be aware of local policies and restrictions to avoid being caught short. It’s a good idea to brush up on generic local speed limits before hitting the road, but we also recommend using a GPS that tells you the speed limit if it changes. If you’re caught speeding, it could result in a hefty fine. You should also be aware of alcohol limits, child seat restrictions, and other car policies to keep everyone in the car safe and avoid fines.