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Established Member
Posts: 21
Registered: ‎07-01-2007
0

Car rental while rebuilding credit

Hi everyone -
 
I've been lurking around for a few months and have truly enjoyed all the positive and helpful info.
 
I am in the (tedious & painful) process of rebuilding my low FICO scores (TU 535, EQ 534 and EX 513 Smiley Mad ).  The only available credit card I have is a $300 CL (unsecured) from Orchard Bank.  I do not have any other credit cards available due to being on payment programs which required the accounts to be closed (ouch! Smiley Sad )

 
For those of you in a similar situation, how were you able to rent cars?  Did you use cash only (which requires a rediculous deposit), max out your card and then pay it off before it hit the CRAs?
 
Any suggestions would be greatly appreciated.
Valued Contributor
Posts: 1,424
Registered: ‎07-24-2007
0

Re: Car rental while rebuilding credit

Some car rental agencies accept debit cards.
New York Yankees - 2009 World Series Champions. 27... and counting.....
New Contributor
Posts: 50
Registered: ‎02-06-2008
0

Re: Car rental while rebuilding credit



cobra19 wrote:
Some car rental agencies accept debit cards.



Yes, some companies do take debit cards.  I know I used to rent from Enterprise before I had an actual CC (not the best rates but they took debit cards).  Then when I got my first CC with a 300CL I simply rented with the new card and paid the balance online immediately so that my util was low.
Contributor
Posts: 98
Registered: ‎02-28-2008
0

Re: Car rental while rebuilding credit

Yes, I've dealt with the exact situation. I would secure the rental with the CC and then switch the payment at the end to either a debit card or pay cash.

But be aware that some places (LA) require a $400 hold at the time you pick up the car so you might want to see about a CLI. They don't charge when you pick it up but they want to see if the card will accept a $400 charge.

Also have you tried Cap 1? They are a good rebuilding card - they usually offer their "credit steps" which give a CLI after 60 days I think.

-TP
TU (3/30/09): 771
EQ (3/30/09): 751
EX (5/19/08): 715
Regular Contributor
Posts: 179
Registered: ‎03-11-2008
0

Re: Car rental while rebuilding credit

I know that Budget and Avis both accept debit cards. If you choose to use the debit, depending on your state there is a $300-$400 hold amount. This doesn't mean they keep the money they just want to see if it will accept that charge. Now if you use a credit card the hold is only $200. the system at both will not allow them to accept secured cards, but if it is unsecured and you have that amount available use it. Pay cash when u return or switch to your debit card or check. I worked for Budget for a few years, I hope this can help.
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Established Member
Posts: 21
Registered: ‎07-01-2007
0

Re: Car rental while rebuilding credit

Thank you everyone for all of your great advice.

I have tried Cap 1 and was denied unfortunately (twice!)

I am definitely interested in a CLI, but I just opened this card so I'm sure it'll take a few months.
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Car rental while rebuilding credit

From 2001 to last August DW and I went without having a CC. Our cars died all at once and for a several month period, all we did was rent cars.
 
Avis didn't work out for us with a debit card. Seems like Dollar gave us troubles then. But Enterprise accepted cash without using our debit card as did Thrifty. We never cancelled our car insurance policies and used that as cover.
 
Beware of smaller agencies. We rented and drove from DC to Houston. On the way back we hit a ladder left on I-10 near Slidell, LA. Destroyed the engine compartment. Fine print in rental agreement says that we have to cover damages with our ins. and pay 75 cents per mile to tow it back to DC. $$$$. So we opted to have it fixed. Seems like Budget rental got us back.
Frequent Contributor
Posts: 478
Registered: ‎03-23-2008
0

Re: Car rental while rebuilding credit

Hertz does acept debit cards,(i have had experience with this), HERE'S THE CATCH!!! they WILL pull your CR and it WILL be a hard pull.
   Reason I have experience with this is because I had to rent a car while my car was in the shop being repaired for someone slamming into me, when i went to rent the car, i didnt have enough available credit on my CC to use itSmiley Sad so i used my debit card, but they pulled my CR and IT was a hard pull. Now I am kicking myself in the butt and should have just used my CC and then paid cash in the end rather then taking a FICO score hit for a hard inquiry.
FICO2/10=EQ= 564

FICO2/10=6012/10-FACO TU 578;3/10=643
Moderator Emeritus
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Car rental while rebuilding credit

Hertz is not the only one that does this-

momof2 wrote:
Hertz does acept debit cards,(i have had experience with this), HERE'S THE CATCH!!! they WILL pull your CR and it WILL be a hard pull.
   Reason I have experience with this is because I had to rent a car while my car was in the shop being repaired for someone slamming into me, when i went to rent the car, i didnt have enough available credit on my CC to use itSmiley Sad so i used my debit card, but they pulled my CR and IT was a hard pull. Now I am kicking myself in the butt and should have just used my CC and then paid cash in the end rather then taking a FICO score hit for a hard inquiry.



Established Member
Posts: 21
Registered: ‎07-01-2007
0

Re: Car rental while rebuilding credit

Whoa! I didn't know about rental companies doing a hard pull on your credit.  Smiley Mad
 
Thanks for dropping some knowledge on us. Smiley Wink
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