The use of credit cards for paying for things is a common occurrence among many adults in the western world. Among these many uses, leasing a car is one of them. Besides the convenience involved, using a credit card demonstrates a certain level of trust. After all, no credit card company in their right mind would issue a credit card to somebody with a checkered credit history. Because of this, many reliable companies like MiramarSpeedCircuit will require a credit card for renting a car. Even when they don’t, you can expect some form of a background check to be carried out.
Because of the importance attached to credit card purchases and payments, it makes it difficult for those without credit cards to rent a car. Without a credit card, you have to looker harder.
The following is a guide to renting a car without a credit card.
1)Find a Rental Company That Doesn’t Require a Credit Card
This is straightforward. However, most people immediately start worrying about getting around the issue of a lack of a credit card. An often-overlooked solution is to find a car rental company that is okay with accepting cash and other forms of payment instead of a credit card. Many car rental companies will usually offer an alternative payment method in addition to the credit card option.
2) Look at the Types of Cars Available for Lease
Admittedly, not having a credit card to use for a car lease will limit your options. For instance, it’s very difficult for a car rental company to agree to lease you a $100 000 car without a credit card. All factors considered, someone without a credit card is seen as a risk. Without a credit card, you’ll be limited to sedans and other less expensive cars. This is ideal for many people, especially travelers who are only in town for a few days. The advantage of this is that you’ll often get cars with the best mileage and fuel consumption, meaning you’ll save money.
3) Agree to a Credit Check
People are not generally willing to consent to a credit check by large institutions with whom they’re not doing business. Even with financial institutions like banks, people only consent to a credit check begrudgingly. However, you may not have much of an option if you want to rent a car without using a credit card. Expressing your intention to do so immediately puts you in the “suspiciously risky” category. In the case of renting a car, agreeing to a credit check is a sign of good faith, indicating to the rental car company that you have nothing to hide. Of course, a good credit score will put you in good stead with the car rental company, thereby increasing your chances of being able to lease a car without a credit card.
4) Pay a Deposit Amount
One of the major reasons car rental companies love to lease cars to people with credit cards is that they can be “pre-authorized” upfront. Say a renter gets involved in an accident that ends up costing more in repairs than the security deposit. If the renter used a credit card, it’s easier for the car rental company to settle the bill than if the car had been rented in cash. It’s even worse when a debit card is used, and the car rental company discovers that there are insufficient funds in the renter’s bank account.
This “pre-authorization” when using a credit card is simple; the amount the car rental company takes from your credit card is not deposited in their account immediately, at least not yet. This amount is frozen, pending the expiry of the reservation of the car lease. Once the car is returned without any damage and on time, the “pre-authorization” is canceled.
In the end, the car rental company is just looking out for its best interests. Using a credit card helps them avoid the many inconveniences associated with other methods like debit cards.
Advantages of Using a Credit Card to the Renter
Using a credit card also benefits the renter. A major perk is the ability to rent whichever vehicle you want. Once your credit card information has been verified, you’re in a position to rent high-end cars. Implicitly, using a credit card means such important details as your credit history have been found to be acceptable. In case of any issues, your credit card is the guarantee needed.
Following the steps above will enable you to rent a car without a credit card, though your options will be limited, not just in terms of cars but also the car rental companies that’ll accept such an arrangement.
