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Since I don't borrow money, that means I don't own any credit cards. Unfortunately, that makes it more difficult to rent a car, since most car companies have serious restrictions on reserving using a debit card. I've done some research on which companies are most accepting of debit cards, but my findings were very inconsistent. Has anyone else had good or bad experiences renting cars without a credit card?

Update:

My girlfriend and I recently tried to rent a car at the Miami airport, and all the major car rental companies except Enterprise required a credit check when reserving using a debit card. Enterprise was out of cars, so we went with Thrifty. We didn't think the credit check was a problem, since we still have decent credit scores dispute having not borrowed money in quite some time. However, my girlfriend's debit card was declined after the credit check with no explanation from Thrifty. Luckily, she had one of her mom's credit cards with her that we were able to use to reserve the car, but this is the second or third time we've had to do this and it's getting frustrating! Any other advice, anyone? I may just have to go with Enterprise every time, as they don't do a credit check (at least not yet!).

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Good question! I do not have a credit card either, only a debit card. I have only had to rent a car twice with my debit card. Both times everything went smoothly with no problems. The first time, I got a good deal through Hotwire. I gave them my card number and rented the car through Avis and everything posted to my account ok. Second time I went directly through Budget and again I had no problems.

I have also done the same thing many times with hotels. I just give them my debit card number and a few days after I check out the charges post to my account no problem. Never have I had to put a deposit down or been turned away.

The key in my opinion is to have them run the debit card like a credit card. That way it runs through the card issuer’s network (Visa, MasterCard, etc.) and not the debt ATM network.

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Were both of your car rentals in conjunction with an airline ticket? Rental companies seem to be much better about using a debit card when you have an airline ticket, I guess because it's a form of identification and collateral. The problems I ran into was when I was renting locally. By the way, I asked the rental companies, and they said they are required to process debit cards differently, regardless of whether you charge through the Visa/MC network or the bank/ATM network. – Cyrus Dec 9 at 22:36
No, none of the rentals were in conjunction with an airline ticket. I don't know about processing the debit cards differently, at Budget they just took my card and slid it through the machine. They never asked if it was credit or debit. I guess it just depends on what company you go through. – The Balanced Spreadsheet Dec 10 at 12:11
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Some rental companies will place a hold of around $200 on funds in your bank account when you use a debit card. I think this is probably what they meant about "processing debit cards differently" because it's what they use as collateral for the rental agreement. If there are damages to the vehicle, they at least know they have a certain amount of cash available (and that you didn't just give them a debit card to an empty account).

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Josh, that sounds reasonable. I've had my debit card declined at Costco while trying to purchase gas, I'm guessing, since I didn't have more than a small amount, maybe $25, in the account at the time (and they don't take credit cards). And I was only going to get $15 worth. I would guess it would be similar with a rental car agency. – debtmaven Feb 20 at 7:28

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