Which to Use for Car Rentals? Debit Or Credit Card

June 4, 2024 By: Stephanie H. - CreditMonarch Online Writer0 comments

Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

Renting a car using a debit card is an option, but it’s not usually someone’s first choice. Most car rental companies prefer that their customers pay with credit cards, and those that accept debit cards often impose extra requirements that can make the rental process longer. Credit cards are used by rental companies to secure the rental agreement, which is the first step. The reason why credit cards are preferred is that they permit companies to put a pre-authorization hold on your card to cover any possible damages or extra charges that may arise during the rental period. Rental companies may view you as a higher risk if you do not have a credit card.

If you do try to rent a car with a debit card, you may find that you need to supply additional documents, such as your return flight itinerary, car insurance or even a passport, depending on the company. The consumer is at risk when using their debit card to make a major purchase, such as a car rental. Your financial well-being could be impacted by this and your finances could be tied up for a longer time than you anticipated.

Car rentals come with extra hoops to jump through when paying with a debit card, regardless of the type of rental you want. Even though its possible to use a debit card to pay for a car rental, there are numerous reasons why using a credit card to rent your car is a better option. For instance, fraud protection is a key reason to use a credit card for car rental and other significant purchases. Credit card companies often have policies to safeguard their customers from fraudulent purchases, which include car rentals. Also, car rental insurance is included as part of cardholder benefits by most credit card companies, leading to better rental insurance.

Because credit card pre-authorizations do not hold funds in the same way as debit cards, you can use your debit card for purchases during your trip. When you use a credit card, rental car companies are less likely to require a lot of information about your travel, insurance, identification, and finances. So if you need a credit card for your next car rental, check out our best recommended credit cards of June 2024.

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