Getting a credit card for car hire

2024

Ive never needed a credit card but most times I've applied for a car hire in UK or here, I get refused at the desk for not having a credit card. I've only a debit card.

Is there much fees to taking a credit card out just for this reason. Id probably only hire a car out once or twice a year in the UK for a few days.

POBox19

Not much to it, just apply at your bank. There is a €30 Stamp Duty annual charge.

2024

Long it take ? 30e a year not to bad

XsApollo

always good to have a credit card to use when paying deposits, buying stuff online, or big purchases, as you can get the credit card company to charge back if you run in to any issues.

but yea just the 30euro a year and no interest if you pay it off in the specified time.

coylemj

https://www.boards.ie/discussion/2058378013/getting-a-credit-card-for-car-hire

How did you manage to make a booking in the first place? If they wouldn't accept a debit card at the desk, how did you manage to book a car using a debit card? Surely the rental company's website refused the booking when you entered a debit card number?

What you're telling us is that, on multiple occasions, you walked up to a car rental desk knowing that there was a >50 % probability ('most times') that they wouldn't accept your debit card.

This story doesn't make sense.

CramCycle

https://www.boards.ie/discussion/comment/122771391#Comment_122771391

They will take a booking with a debit card, I've never been refused. Funniest one was in Luxembourg and they asked to swipe my card and the guy behind the desk then pointed out it was credit card only for security. I didn't have one, but said sorry, wrong card, and pulled out the debit card from my joint account and he never noticed. This was a few years ago now though.

coylemj

https://www.boards.ie/discussion/comment/122771410#Comment_122771410

I know that some rental companies will accept a debit card. The problem usually is that they want to take a big deposit to cover potential damage up to the excess, especially if you decline to buy their rip-off insurance. Maybe the OP didn't have enough money in his current account when they swiped his debit card at the desk. The fact that he was refused multiple times is what I find strange - how could you walk into the same situation more than once and not make sure it didn't happen again?

On the general question of debit vs. credit card, it seems strange if they will accept a debit card with the booking and not warn you that you will need a credit card when you rock up to the desk in the airport.

Del2005

https://www.boards.ie/discussion/comment/122771446#Comment_122771446

They all say in their T&C's that you need a credit card to rent, which you agree with when you book. They can't do much more when people tick the box saying that they understand they need a credit card to hire but then turn up with a debit card.

Del2005

https://www.boards.ie/discussion/comment/122769094#Comment_122769094

You have the same protection with a debit card as a credit card.

But I agree with using a credit card. They will work harder to get their money than yours and once you pay it off fully you get 56 days interest free loan. The biggest benefit is that companies can't block your money for deposits so if they are slow to release the funds you still have access to your money.

Nigzcurran

Some car rental companies will ask for a large deposit if paying by debit card. I had no credit card and didn't have a spare thousand for a deposit so I bought their insurance off them and didn't have to worry about them finding any scratches on it when I returned it. Was worth every penny to be honest

coylemj

https://www.boards.ie/discussion/comment/122771491#Comment_122771491

Your last statement is incorrrect, companies can and do block or ringfence part of your credit card limit to protect themselves. Hotels do it in case you go mad spending on your trip and your credit card limit is busted when you go to check out. Car rental companies do it when you decline their insurance, in case you bring the car back damaged.

It doesn't appear as a transaction on your credit card bill, you can only tell when it happens if you login to your bank and check your credit card limit. If you do the sums, you'll often see that your spending limit has been reduced by a few hundred Euros when you're renting a car or staying in a hotel.

POBox19

https://www.boards.ie/discussion/comment/122769049#Comment_122769049

Depends, use your current debit card bank and it’s probably a week, they’ll tell you.

https://www.boards.ie/discussion/2058378013/getting-a-credit-card-for-car-hire

have a good walk around the rental car before you drive off and photo any damage you find on the car or you may be billed for damage you did not cause

pakb1ue

When I lived in the UK I had no issue renting a car with a debit card (card was issued in the UK). Even this year I was able to do the same but had to give a £600 deposit.

In Ireland the only reason I got a credit card was to rent cars. I was told once at the car rental desk the reason for needing a credit card was that a charge on a credit card doesn't bring the same amount of regulations (in Ireland at least) as if they are to hold X amount of clients money from using a debit card. How true that is, is another story.

The only way I've seen to get a rental car in Ireland without a credit card is to take their extra insurance (which is normally more expensive than the rental). Much cheaper to get a credit card and get the excess insurance with a third party.

coylemj

https://www.boards.ie/discussion/comment/122771517#Comment_122771517

The insurance you buy at the rental desk is a total rip-off. But it’s sold on the basis of peace of mind. Which clearly works with some people. An excess policy from AIG to cover a seven day rental costs €25. You probably paid a lot more than that. Last time I checked, an annual policy was €50.

Del2005

https://www.boards.ie/discussion/comment/122771543#Comment_122771543

They block access to your credit on your credit card, that doesn't affect people in serious ways. If the company is slow to release the block you might not be able to pay for a meal or buy fuel for your car, but nothing critical is going to be missed and most people will have a backup payment method when using hire cars or hotels.

Using a debit card they block the money in your current account. You can miss mortgage or other important payments if the company is slow to release the block. There is no back up to missing a payment and getting stung for missed payments, unless you have an overdraft and that is a very expensive way to not use a credit card.

GerardKeating

https://www.boards.ie/discussion/2058378013/getting-a-credit-card-for-car-hire

Other than the stamp duty, there are no fees for a credit card, at least with my bank, yours might be different.

You might even find the credit card is "cheaper" to use, compared to a debit card, IF you clear the balance at the end of each month, many debit cards have transactions fees, maybe 15/20 cent per transaction whereas credit cards do not.

Basically credit cards are cheeper for all transaction types, EXCEPT cash withdrawls.

laoisman11

Renting cars in Ireland is the only reason why i got a personal credit card. A debit card is accepted in France (where I live) to cover the excess, and the excess is generally a few hundred euro which is blocked. Previously I've used a work credit card to cover the excess, but they have increased the excess from 2-3k€ up to 5k€, so I've found myself stuck on occasion. And of course the rental car companies will only accept a single credit card, you can't split it over 2 credit cards.

I find the whole thing a ripoff and would love to know how many tourists get caught buying extra insurance when they come.

coylemj

https://www.boards.ie/discussion/comment/122793749#Comment_122793749

You must have been renting from one of the cowboys if the excess was 5K.

A high excess keeps the insurance cost low for the rental company. They can then quote a low daily rate but the sting in the tail is that, when you show up at the rental desk and discover that your card can't cover the high excess, you have no choice but to buy their ripoff insurance. A classic case of false economy. People simply can't see beyond the bargain price to ask themselves: 'why is this operator cheaper than everyone else?'

Last time I rented from Europcar in the Canaries, the excess was 800 but they only blocked 370 off the credit limit on my credit card.

laoisman11

https://www.boards.ie/discussion/comment/122797471#Comment_122797471

Perhaps it was, although I remember reading the details of a notice on the AVIS counter that strongly implied that this was the case for all car rentals, even through AVIS. Although it was extremely vague.

What I don't understand is how AVIS or other 'reputable' rentals allow their cars to be reserved via 3rd parties, and then when the client comes to pick up the car, the client is obliged to take insurance worth more than the car rental. Doesn't make sense - unless they are all doing it and the consumer has no choice.

coylemj

That notice you read on the Avis counter was false or, at best, misleading. I always decline the rental company insurance and nobody in Hertz or Europcar has ever attempted to convince me that it was mandatory. At this stage it's probably on my customer profile that I never buy insurance because, nowadays, the clerk at the desk barely mentions it.

If you book a car rental via a third party like an airline, you can expect to pay more. The airline or holiday company gets a kickback for 'delivering' you to the car rental company. The rental company has to recoup that commission and you've discovered how they do it.

You get the best price for car rental by shopping around i.e. get several online quotes. And read the Ts & Cs to see how much of an excess each of them applies. You can't shop around if you simply click the car rental button when booking a flight or a holiday.

nickkohl

I've been refused with debit card

Henry Ford III

Insure the excess. It costs very little.

2024

I got one with debit card

Del2005

https://www.boards.ie/discussion/comment/122906732#Comment_122906732

It just makes everything so much easier if you use a credit card though. You restrict the companies that you can hire from and most companies that allow you to use a debit card insist on their excess insurance so it's costs much more.

What are the benefits of using a debit card vs a credit card?

coylemj

What are the benefits of using a debit card vs a credit card?

When it comes to renting a car, none. But plenty of people chose not to have a credit card, for lots of reasons.

Jim2007

https://www.boards.ie/discussion/comment/122912546#Comment_122912546

What are the benefits of using a debit card vs a credit card?

I think a lot of it is personal preference, here in Switzerland taking up any kind of credit product other than a mortgage is seen as a big negative so trying to move customers away from cash was a nightmare - people were buying cars, home appliances etc… and paying in cash! So once the debit cards were introduced there was a big up take and then covid consolidated it.

For the Swiss it's a question of having better control over their money - they know what is on their account, they can see any reservations made against the account and what their net balance is.

Charles Babbage

I was in the US some years ago and I had made a reservation through Autoeurope. Then Bank of Ireland cancelled my credit card owing to an unrelated fraudulent transaction and the post would take a week for a new one. However, Autoeurope were able to offer me an alternative rental that would accept a debit card, in what I considered to be good service.

Del2005

https://www.boards.ie/discussion/comment/122915016#Comment_122915016

None of that is a benefit of a debit card, especially now with online banking. So what benefits do you get by not having a credit card and only using a credit card, because I can't any.

2024

https://www.boards.ie/discussion/comment/122912546#Comment_122912546

The benefits are, I don't have a credit card

Charles Babbage

https://www.boards.ie/discussion/comment/122947034#Comment_122947034

Which is actually an inconvenience.