Would you like to rent a car using your prepaid debit cards? Generally, many car rental companies only accept credit card for payment. But as more and more consumers prefer to pay with their debit cards, some car rental companies are willing to accept this method of payment. Nevertheless, you need to be smart about it.
Below are practical tips and how to use a debit card for renting a car:
1. Check the car rental company’s policy. You can check the policy of different rent-a-car companies by checking out their website or calling the customer service number. While some companies may strictly require a credit card, some companies may have more relaxed policies with regards to payments.
2. Be prepared to wait in line. Paying with a credit card gives you the option to pay online. However, if you want to pay with a debit card, the car rental company may require more proof to verify your credibility.
3. Ask if you can pay with your credit card. Despite what is stipulated in the policy, some car rental companies may also accept debit card payment, if you make request. Thus, it is always worth the effort to ask if you can use your debit card.
4. Be aware of “holds” and “blocks”. A lot of merchant impose a “hold” or a “block” to the cardholder’s checking or savings account to ensure payment. Thus, aside from the cost of the rental service, you may need to reserve extra funds in your account which will be “frozen” or put on “hold” for 1 day to 14 days, depending on the company.
5. Make sure your debit card is compatible. Some merchants only accept debit cards with Visa or MasterCard logos. If your debit card has different logo, you may want to check first with your prospective rent-a-car company if they accept such type of debit card.
6. See to it that you have good credit. Some people may not get approved for a regular credit card because of a poor credit history. For this reason, rental-a-car companies do a credit check before accepting a transaction. Take note that each time an inquiry is made in your credit report, it will also show up in your file. Too many inquiries can send out a negative impression to prospective creditors. Hence, if you are aware that you have bad credit, you may choose to pay in cash instead of using your debit card.
7. Prepare proofs of ID. Some rental car companies may ask to see proofs of identification such as auto insurance documents or recent utility bills. The name that appears on these documentations must be the exact name that appears on your debit card as well.
About the Author
Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!