Credit Card for Rent-A-Car

[lunasgal]

Hi All!! So My BK was discharged earlier this month.. I work for the airlines, and would need/like to rent a car when I travel. Most rental cars companies run credit to check " credit worthiness" when using a debit card and my credit is a beautiful 590 score! Credit cards is what got me in my huge BK mess, but I don't think there is any other option? What do you all think about this issue?

Danka!

Kristen!

[HHM]

Does your airline provide a corporate card for such things?

Do you really "need" to rent a car? What exactly do you do for the airline that requires travel beyond going to a hotel for the night and getting a meal?

My first response to questions like this is to first explore the underlying "need." Are there alternatives to renting a car? (most likely yes; maybe not as convenient, but probably available and likely cheaper than actually renting).

[dumpinmydebt]

Well if you truly need it, then you don't have an option and I don't think you'd be asking for opinions on it.

But you stated need/like. If you'd just like to, I wouldn't suggest it.

[HHM]

Well if you truly need it, then you don't have an option and I don't think you'd be asking for opinions on it.

People VERY OFTEN confuse need with want. Especially in the financial arena of their lives. At a fundamental level, that is the CAUSE of nearly all bankruptcy (except for extreme medical bankruptcy). The "catalyst" to a bankruptcy may be an EVENT like a job loss, but the underlying CAUSE is overspending no mater how you slice it. And I don't mean this in a judgmental way. I view the issue more along the lines of "addiction"

Lifestyle addiction is very real. So, this OP comes on and asks about renting a car after BK. The short answer is yes, because you will be able to get credit cards very quickly after BK. But the fundamental issue is whether the NEED to rent actually exists. If there really is no need, then the ability to rent is moot.

[free2breathe]

If you need to rent a car, having a credit card to secure that car would not be as much of an issue if when you drop the car back off, you choose to pay for the rental with cash or your debit card. But, like everyone says, determining need vs. want is the first step, then determining affordability. Personally, I've not had any issues renting with a debit card, and my credit has been dragging tail for a long while now.

[lunasgal]

Thanks all- I don't "need" the car for my work, but when I travel to new places ( free) it would be handy to rent a car if I need it and not have to worry about the options about not being able to rent a car.. I guess I answered my own question in my question.. I have a lot to think about, filing BK is so much more powerful emotionally then I ever figured it would be! Fresh start, fresh attitude!

[FTWORTH]

Thanks all- I don't "need" the car for my work, but when I travel to new places ( free) it would be handy to rent a car if I need it and not have to worry about the options about not being able to rent a car.. I guess I answered my own question in my question.. I have a lot to think about, filing BK is so much more powerful emotionally then I ever figured it would be! Fresh start, fresh attitude!

How about traveling to destinations that you can get around using public transportation for a bit until you feel more comfortable acquiring a credit card.

You could also use the credit card to make the reservation but pay with your debit card.

FTW

[Flamingo]

Enterprise rents to those with debit cards; however, there are restrictions (i.e., cannot take the car out of the state in which rented or limited to surrounding states). Give each agency a call or visit their web sites online for their restrictions as to debit card users.

[backtoschool]

Quite a few rental car agencies will rent to people with debit cards, but like Flamingo says, it will be with restrictions. Usually a $200-500 dollar deposit is taken from your checking account and is not returned until the car is returned, the bill is paid and everything has cleared. Also most rental car companies will not let you take a car out of state if you use a debit card, as Flamingo says.

Hertz, Avis and Enterprise all also rentals with debit cards with the restrictions I just wrote above.

[viking64]

You can rent cars without a credit card, but you do have to look for the best way to do it. My opinion on the need/want is that if you can afford it, it's your business and nobody else's. The credit card issue is just a logistical one, not an economic or moral one.

The easiest solution is Alamo. I've rented from Alamo with a debit card as late as September. They don't do a credit check, nor do they hold in excess of the projected rental amount. In fact, I had a ten day rental, and the hold on my funds fell off about 4 days into the rental since Alamo hadn't processed the charge yet. So, if you use a debit card, make sure you keep the funds available!

I think Hertz varies by location as to whether they do a credit check. You could call the location and ask what their requirements are. I suspect as long as you are out of BK (case has been closed), then it might be possible even if they do a credit check.

A friend has used Avis vis Priceline or Hotwire (can't remember). While she doesn't have BK, she does have a horrible credit score. They did a credit check and held an additional $200.

If you can free up the cash, you can always get a secured credit card for about 1.5 times the amount of your likely usual rental cost and then just use a secured credit card. No one would be the wiser and it eliminates any need you have for making prior arrangements or reading the fine print very carefully on rental contracts.

Also, if you travel to other countries, look to see if there are rental companies that specialize in debit card or cash rentals. I spent 9 week in South Africa and was able to rent a car with cash, pre-paid. Turned out to be cheaper than any of the majors, and the company had great service, albeit with older vehicles.

[Amy26]

You can rent cars without a credit card, but you do have to look for the best way to do it. My opinion on the need/want is that if you can afford it, it's your business and nobody else's. The credit card issue is just a logistical one, not an economic or moral one.

I totally second this statement. While I believe HHM's logic is sound I do not agree with a lot of the assertions. But I grow tired of rehashing that!

If you're able to get a card...being secured or unsecured and you are responsible enough to manage the credit and have learned your lesson then you don't need our permission to rent a car. There are also fabulous alternatives which have been described.

[lunasgal]

Thanks all- I am going to hold off on doing anything for a while and keep working on saving money.. If it comes up I will have enough money to back up renting a car, but in many instances public transportation will work if need be! I really want to be "credit card" free ..

[HHM]

But you need to address the larger mindset. The problem is that we are asking the wrong question; the wrong question is "can I afford it". Well, all of us can create elaborate justifications for why we CAN afford something. The real question is what is the optimal use of the money. I am not advocating an austere, needs only, lifestyle. But if there is ONE thing this depression should teach us is that we need to control spending. We need to let spending control lifestyle, not lifestyle control spending.

It really isn't a question of whether you agree with me or not, it is simply a fact. The reason people file bankruptcy aside from actual catastrophe is that they were on the cliff of financial collapse due to lifestyle choices. And I don't mean that in a bad way, I mean it in a very broad sense. The wannabe entrepreneur that debt finances a business not realizing that the debt burden will ultimately cause the business to fail, (that is a lifestyle choice), the couple that buys the MOST house they can get and saddles themselves with a 31% mortgage payment; that was a choice.

As I said, the "catalyst" to a BK is often an event outside the debtors control (the lay off, decrease in income, recession, etc), HOWEVER, the inability to ride it out, the inability to survive the set-back is largely due to lifestyle choices driving spending. In the broadest of senses...all I am advocating is we switch the dynamic, instead of having lifestyle drive our spending, have our spending (available resources) drive our lifestyle. If you control spending, lifestyle takes care of itself.

For example, take the real estate agent that got financially killed during the housing depression, you take a real estate agent that was making $400,000 per year and the associated lifestyle, then comes 2008, and is barely able to make $60K. What if that Real Estate agent had been living all along at a $100,000 per year lifestyle even while making $400,000. That agent would have survived the recession with ease instead of needing BK. That agent would have had massive savings, and hopefully a willingness to downsize.

Let's bring it back full circle, spending control starts with the little things (because it is the little things that get us into trouble); so, affordability aside, in the question of renting a car, the questions is, do I need to rent a car, is it the best use of the available funds? How do you decide if its best use of funds. First, there is a need, ground transportation at the destination; second, then you explore the available, ALL available options. If there is a cheaper alternative, or no need, why spend the money?

[backtoschool]

I agree for the most part HHM. Consumption lead most of us to the financial brink (including me). But I do have a couple of comments.

1. There is always a cheaper alternative, but that does not mean it is the most convenient alternative or the best overall choice. As far as navigating ground transportation in a new city, safety, convenience, etc should also be taken into consideration along with raw cost.

2. There is always "optional" items that can be cut from a budget unless someone is living at subsistence level. But where the line is drawn between living and spending is a matter of personal choice and lifestyle preference. Life should still be fun in my opinion. If you wait long enough, just about every movie eventually ends up on free cable. Should you wait? Not sure. Any meal you eat in a restaurant could be made at home for less. Should you never go out and eat? I think you should. Most destinations in the US can be gotten to via Greyhound bus for less than flying. Should you pack your family up and take the bus cross country? Again, I don't think the money savings is worth the hassle.

3. If travelling for business then by all means, it is easier to arrive at the meeting with reliable transportation rather than relying on public transportation.

[HHM]

I agree for the most part HHM. Consumption lead most of us to the financial brink (including me). But I do have a couple of comments.

1. There is always a cheaper alternative, but that does not mean it is the most convenient alternative or the best overall choice. As far as navigating ground transportation in a new city, safety, convenience, etc should also be taken into consideration along with raw cost.

2. There is always "optional" items that can be cut from a budget unless someone is living at subsistence level. But where the line is drawn between living and spending is a matter of personal choice and lifestyle preference. Life should still be fun in my opinion. If you wait long enough, just about every movie eventually ends up on free cable. Should you wait? Not sure. Any meal you eat in a restaurant could be made at home for less. Should you never go out and eat? I think you should. Most destinations in the US can be gotten to via Greyhound bus for less than flying. Should you pack your family up and take the bus cross country? Again, I don't think the money savings is worth the hassle.

3. If travelling for business then by all means, it is easier to arrive at the meeting with reliable transportation rather than relying on public transportation.

I get that, but that is the slippery slope. That is how we manufacture justifications for things we really don't need. I agree, I am not talking about a life spent in manufactured poverty, but it is helpful for reset the mindset and at least consider alternatives to the "easy" option.