Do you need a credit card to rent a car?
Written by
Emily Tye
Reviewed by
Amy LancashireNot always. Many UK car hire firms will let you hire a car with a debit card, but not all of them, and the rules are usually stricter. A credit card is still the simplest option, because the deposit is held against your credit limit rather than your own money.
Why do car hire companies ask for a credit card?
Because of the deposit. When you collect the car, the hire firm puts a hold on your card to cover costs that might only show up after you've returned it, such as missing fuel, a late return or fines. Depending on the firm and where you're hiring, it can also cover part of the bill if the car is damaged. At the end of the hire, the firm charges what you owe and releases the rest.
What happens to my deposit if I pay by credit card?
The deposit is held against your credit limit. It isn't a charge, but it reduces the credit you have available to spend until it's released.
A few things to plan for:
Leave room on your limit. Your available credit needs to cover the deposit, plus the hire cost if you're paying at the counter, with enough left over for the rest of your trip. If the hold uses up most of your limit, other card payments could be declined.
Expect it to take a while to clear. The hire firm releases the hold when you return the car, but your card provider controls when that credit shows as available again. One major hire firm says this takes 3 to 10 working days, while another says it can take up to 28 days.
Can I hire a car with a debit card?
Often, yes. Of the 5 major UK car hire firms we checked, 4 accept debit cards, though not always at every branch or for every car, so check the rules for the location you're collecting from. The fifth would only take a credit card for the deposit.
Check these conditions before you book:
The card must be in the main driver's name. It also needs to match the name on their driving licence.
Check your card type. Firms list the debit cards they accept, and not every type of debit card is on the list.
Your choice of car may be limited. Bigger and higher-value cars, such as SUVs, people carriers and premium models, can require a credit card, or even 2.
You need the full deposit in your account when you collect the car.
Northern Ireland can be different. Some firms will only take a debit card for the deposit there if you also buy their own damage cover.
The deposit is where credit and debit cards differ most for car hire. On a debit card, it's usually still a hold, but it's your own money being held, so you can't spend it until it's released. Some firms take the deposit as a payment instead and refund it after the hire.
Is it better to use a credit card for car hire?
A credit card usually makes car hire simpler, and it can give you more protection if something goes wrong.
If the hire costs more than £100 and you pay for it on a credit card, even in part, your card provider can be jointly liable if the hire firm breaks the contract. This protection, known as Section 75, doesn't cover debit cards. If you book through a broker or comparison site, it can depend on whether that site sold you the hire itself or acted as an agent for the hire firm.
The trade-off is cost. If you don't repay the balance in full, you'll normally pay interest on the hire.
How can I hire a car without a credit card?
Use a debit card at a firm and branch that accepts one for the car you want.
Let someone with a credit card be the main driver. A travelling companion can hire the car in their name and add you as an additional driver. The hire contract is theirs, along with responsibility for the car and any charges, and adding a driver can cost extra.
Get a credit card before you travel. If you're applying with a trip in mind, check how long it takes to get a credit card. Even if you can start spending on a digital card straight away, most hire firms will want to see the physical card at the counter.
FAQs
Can I hire a car without a deposit?
It's unlikely with the major firms. All 5 we checked take a deposit when you collect the car. For a standard car in mainland UK, it's often the hire cost plus a few hundred pounds. It can be £2,000 or more for premium cars, or where the deposit also covers your damage excess.
Can I use a prepaid or virtual card to rent a car?
Not for the deposit. Prepaid cards generally aren't accepted at the counter, and you'll need to show a physical card. Some firms let you pay for the booking online with a prepaid card or a digital wallet such as Apple Pay, but you should still bring the physical credit or debit card when you collect the car.
Can I rent a car with someone else's credit card?
Usually not. The card needs to be in the main driver's name, so the person whose card it is would need to hire the car themselves.
Can I hire a car abroad without a credit card?
It's harder. Debit card rules vary by country, and one major firm's UK website lists just 10 European countries, including the UK, where you can hire with a debit card. Check the payment rules for your destination before you book. Our guide to using a credit card abroad covers how to avoid extra fees and poor exchange rates.
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
