Do you need a credit card to rent a car?

You don’t necessarily need to use a credit card to rent a car. But renting a car with a credit card can simplify the process, provide more convenience and even save you money. 

Discover why a credit card could help you save more than other payment methods.

What you’ll learn:

• A credit card may not be the only way to rent a car. But it could provide more value than other forms of payment.

• Some credit cards offer rental car insurance at no additional cost. 

• If you use a debit card to rent a car, you could experience restrictions based on your age, travel plans and credit history. 

• Prepaid cards and cash aren’t widely accepted when you pick up a rental car, although some companies may allow them for final payment.

Not all rental car companies require you to book using a credit card. But most companies ask for a deposit to hold the vehicle. And if you’re not using a credit card, you’ll need to make sure you have enough money in your bank account to cover it.

Plus, the company could have additional requirements to rent a car without a credit card, like bigger security deposits or credit checks. Policies can vary even between locations operated by the same rental company, so be sure to review the rental agreement and payment requirements.

You may want to consider paying with a credit card for your car rental because it could help make the reservation process easier. Plus, you might be entitled to potential benefits and savings.

You’ll enjoy several benefits when you use a credit card to rent a car. ​​

Credit card issuers may offer discounts on select car rentals through partnerships or their travel rewards portals. 

Some issuers may also offer complimentary status at sought-after rental agencies. For example, with the Capital One Venture card, eligible cardholders can receive Hertz® Gold+™ Five Star® status. With Five Star status, you could be eligible at participating locations to skip the counter and get a car-class upgrade and exclusive rewards options.

When paying with a credit card, you may have access to rental car insurance. Credit cards with rental car insurance typically offer primary or secondary coverage—giving you the option to decline the rental agency’s coverage and associated fees. Capital One offers rental car coverage for eligible cardholders. 

Before renting, review your card’s benefits guide to see what’s covered, what exclusions apply and whether you need to decline the rental company’s collision damage waiver for the benefit to apply.

If you have a rewards credit card, especially a travel credit card, you could earn bonus rewards from your rental car transaction. For example, Capital One Venture cardholders can earn 5X miles on car rentals booked through Capital One Travel and 2X miles on other purchases.

Credit card issuers may let you redeem your rewards toward car rentals. And that could help you save money during your trip. 

For example, you can redeem Capital One Venture miles for rental cars when you book through Capital One Travel.

Some car rental agencies may run a credit check when you use a debit card rather than a credit card. Depending on the rental company, that hard inquiry could appear on your credit reports and may affect your credit scores. Using an accepted credit card may allow you to avoid that requirement.

Since rental companies usually place an authorized hold on your account using a credit card, that hold reduces your available credit. With a debit card, the money may become temporarily unavailable in your bank account.

Using a credit card can help keep money in your checking account available for other travel expenses while the rental hold is in place.

While credit cards are widely preferred by car rental agencies, many companies allow you to pay using alternative payment methods, such as debit cards, prepaid cards or cash. But these options often come with specific requirements, restrictions or additional procedures that are best to prepare for in advance.

Car rentals with a debit card are possible, depending on the company. But if you’re using a debit card, you could experience limitations, like having to show your ticketed travel itinerary.

Other forms of payment you might consider when renting a car are prepaid cards and cash. While these options are rare for renting a car, you may be able to use them as a final form of payment.

Here are answers to some common questions about using a credit card to rent a car:

A credit card isn’t always required, but it can help both simplify the process and earn rewards. The next time you want to rent a car, consider the rental agency’s policies to determine whether using a credit card is right for you. 

If you’re looking to use a credit card for your next car rental, compare Capital One travel rewards cards today. Eligible cardholders can earn bonus miles on travel purchases, including rental cars booked through Capital One Travel. Plus, you can receive an auto rental collision damage waiver on eligible vehicle rentals.