Can You Rent a Car with a Secured Credit Card and Bad Credit

Renting a car with a secured credit card and bad credit can be a challenge, but it's not impossible. Secured credit cards are often used by people with bad credit to establish or rebuild their credit history.

Most car rental companies require a credit check, and a secured credit card may not pass this check. This is because secured credit cards are often linked to a savings account, which may not have a sufficient credit history.

However, some car rental companies may accept a secured credit card for a deposit, which can be a way to rent a car with bad credit. The deposit amount may be higher than usual, and the credit card may be subject to additional fees.

If you're planning to rent a car with a secured credit card and bad credit, be prepared for a higher deposit and potential additional fees.

You can rent a car with a secured credit card, but it's essential to check your available credit first to ensure there are enough funds to cover the rental cost, including fees and the authorization hold.

Rental companies initiate authorization holds on credit cards, which can be a minimum of $250 for Avis, or up to $350 for Thrifty Car Rental in Canada.

As long as your secured credit card is co-branded with a major payment network, using it to rent a car is similar to using an unsecured credit card.

The hold amount varies between rental agencies and locations, with some common minimum hold amounts including:

Authorization holds don't affect your credit utilization, but they do impact the amount of credit available on your secured card, so be mindful of your available credit when renting a car.

Car rental companies often require a credit card from a major issuer like Visa, MasterCard, or Discover.

If you're considering a secured credit card, it's essential to choose one co-branded with a major payment network. This can increase your chances of getting approved.

Some secured credit cards come with very low limits, often only a few hundred dollars or the amount of collateral you put down, which may not be enough to cover the estimated charges for the rental.

Renting a car can be a straightforward process if you have the right credit card. You can typically rent a car with a secured credit card just like you would with an unsecured card, as long as there's enough available credit to cover the cost of the rental, including fees and the authorization hold.

Rental companies will initiate an authorization hold on your credit card, which is essentially a security deposit to cover potential damage to the vehicle. The hold amount varies depending on the rental agency, but it's usually the estimated rental charges plus a percentage of the estimated rental charges, typically 15 to 25%.

To give you a better idea, here are some minimum credit card hold amounts for popular car rental outfits:

The good news is that authorization holds don't affect your credit utilization or credit score. However, they can impact the amount of credit you have available on your secured card, so be sure to check your available credit before renting a car.

Renting a car with bad credit is possible, but it may come with some extra requirements. Many rental car agreements include a credit check, which can be a challenge if you have poor credit or no credit at all.

You can try paying a higher security deposit to rent a car with bad credit. Some rental car companies may be more willing to work with you than others.

Using a credit card to fund the transaction can help you bypass the credit check. But, you'll need to have a credit card in the first place.

Secured credit cards are a good option for getting approved for a credit card with bad credit. You provide a security deposit, which acts as the line of credit for the card.

By making your payments on time each month, you can build credit with a secured credit card. Payments are reported to all three credit bureaus, so this is a great way to start rebuilding your credit.

To find the right secured credit card for your needs, you can compare options on Secured Card Choice.

When choosing a credit card to rent a car, consider the type of card you have. You can typically rent a car with a secured credit card, but it's essential to check your available credit to ensure there's enough funds to cover the cost of the rental, including fees and the authorization hold.

Rental companies often initiate authorization holds on credit cards to act as a security deposit. This hold can be significant, with some companies charging a minimum of $250, like Avis. Others, such as Budget, may charge the total estimated rental charges plus the greater of 25% or $200.

The hold amount can vary depending on the rental company and location. For example, Enterprise Rent-a-Car's hold amount varies by location, while Hertz may charge an estimated car rental charge plus up to $200. Thrifty Car Rental, on the other hand, charges an estimated rental charge plus a $200 authorized hold in the U.S. or $350 in Canada.

To rent a car with a secured credit card, you'll need to have enough available credit to cover the estimated charges for the rental. This can be a problem if your secured card has a low limit, such as a few hundred dollars or the amount of collateral you put down.

If you have bad credit, you may still be able to rent a car by using a credit card to fund the transaction. Secured credit cards are a good option, as they're easy to get approved for and can help you build credit by making timely payments.