How to Rent a Car With a Debit Card

Yes, you can rent a car with a debit card, however, most rental companies prefer a credit card. So, why do rental companies prefer credit cards?

The main reason that a credit card is preferred when renting a vehicle is that a credit card can be charged much easier after the vehicle has been returned.

Imagine if when you are driving the vehicle, you receive some parking tickets or accidentally run through some tolls without paying. The parking tickets and toll fees would then be charged to the license plate number of the vehicle. These charges may not reach the car rental company for weeks or even a couple of months after they have occurred. 

Instead of the rental company eating the costs of these fines, they can then charge you for the incidental fees when they are discovered without you needing to be present. 

Same thing if you damage the vehicle in a way that is not immediately noticeable when you return the car. If any damage is discovered after the car is returned that is not covered by insurance, again the rental company would need to charge you for the damages. So where the problem lies with debit cards is that most often the cardholder needs to be present to enter their PIN to charge the debit card. With a credit card, no PIN is required. 

With only a few extra steps, renting a car with a debit card can be quite simple. Keep in mind that you may need to provide additional information like a second and possibly a third form of identification, proof of address, and a complete travel itinerary.  You may even need to undergo a full credit check before being allowed to rent the vehicle. 

On top of that, most companies will place a hold on your debit card as a form of security deposit. The hold amount could be anywhere from $200 to $500 depending on the company.  

Additionally, many rental companies add additional restrictions to the rental agreement when paying with a debit card. For example, the rental company can restrict the age of the driver, what kind of vehicle you can rent, and if you are traveling in a group, who is authorized to operate the vehicle and who is not. Some of this may seem a little overkill, however, this is completely normal if you are looking to rent a vehicle with a debit card. 

Here is a step-by-step guide to renting a car with a debit card. 

1. Check the rental car company policy

The first thing you should do is review the entire car rental policy of any company you are considering. Make sure to also review any specific policies or additional restrictions that the company may have for renting a car with a debit card. 

In the company policy, you should find out what kind of additional documentation you may need to provide, whether or not they do a credit check, and if they will put a hold on your debit card as a security deposit. 

Keep in mind that some rental companies may contact the Department of Motor Vehicles in your state to check your driving record. Rental companies can deny you a vehicle if for any reason they see your driving record as risky. 

The rental policy and restrictions should be reviewed at the same time you are browsing to determine which companies you want to work with. This way you can compare the policies and restrictions right alongside the prices and cars available from each company to find the best deal. 

2. Understand the rental car hold

Once you find a company you would like to rent from, find out if they are going to put a hold on your debit card. If they are going to place a hold on your debit card, make sure you understand for how much. 

A hold is another term for a security deposit. Most rental companies may charge anywhere from $200 to $500 for a hold depending on their policy. This means you will not be able to access those funds from the linked bank account until the car is returned and it has passed inspection.

3. Provide all of the required information to the rental provider

Remember, to rent a car with a debit card, make sure you understand the complete policy of the company before you arrive. In the policy, you are going to see all of the different forms of ID and additional documentation you are going to need to leave the rental place with your vehicle.Not having all of the required documents and information could result in not being able to rent your vehicle. 

In addition to having a valid driver’s license, you may need to provide a second form of ID, proof of insurance, proof of address, a complete travel itinerary, and other various documents. Each company is different so be sure to review the policy carefully. Also, be prepared to have anywhere from an additional $200 to $500 set aside that the rental company may require for a security deposit. 

4. Return the car

When returning the car, make sure you follow the policy and rental agreement to the tiniest detail. For example, some rental companies may require that you fill the gas tank before dropping off the vehicle or you will be charged a premium refueling rate. It’s these types of minor details that can end up costing you much more than you bargained for. 

Again, meticulously read the company policy, restrictions, and rental agreement before renting and returning your car.

Once you have found a car rental company you like that accepts debit cards, it is critical that you review all of the company’s policies and restrictions to make sure that they are the best company for you. 

Here are some quick tips to remember before signing up with any car rental company. 

• Check all of the rental car company policies and restrictions of any company you are considering.
• Shop around for the best deals, vehicle types, prices, etc.
• Read online customer reviews of various rental companies to look for any red flags.
• Make sure to strictly follow the company policy to avoid losing your deposit or incurring additional charges.
• Before going with a car rental company, consider alternative options like public transportation or using a trusted car subscription service like FINN. 

There are several pros and cons of renting a car with a debit card that you should understand before planning your next vacation or road trip. Here is a breakdown of the most important pros and cons to consider.

Pros

• No need to pay interest on debit card charges versus high-interest credit cards.
• Directly debit the money from your checking account rather than creating new debt.
• Because debit cards don’t add new debt, your credit score will be unaffected.

Cons 

• There are much fewer financial protections with debit cards versus credit cards.
• No ability to earn cash rewards, travel perks, or air miles.
• Some rental companies require a hard credit inquiry which can drop your credit score.

If after considering the pros and cons of renting a card with a debit card and you are uncomfortable, you should consider an alternative. 

There are any number of reasons you may prefer to use a debit card to rent a car. Maybe you want to avoid paying high-interest rates and fees associated with credit card purchases. Maybe you don’t have a credit card in the first place.

Whatever the reason for wanting to use a debit card to rent a car, you should know that there are plenty of companies out there who are willing to work with you. For an alternative to renting a car, consider a car subscription with FINN. Check available vehicles today.