Hiring a luxury car offers you many benefits, but do you need a credit card to hire one? Can You Rent a Luxury Car Without a Credit Card In Australia?

That’s what exactly we are going to cover in this article…

Several rental car companies offer regular and luxury cars at various prices. You can choose the company as on its reputation, customer handling services, rating, and experience.

However, your chosen company may require a credit card or debit card payment for renting the car. But, is there a way to rent a luxury car without a card? How to avoid a credit card if they ask for one?

Let’s first discuss why most rent-a-car companies require credit cards from their clients.

Why Do You Need A Credit Card To Rent A Car?

Some rental car companies only require you to use your credit card to hire a rental car. It is because if something goes wrong during your rental tenure, the company can claim damage fees from the card.

On the other hand, companies can’t do the same with debit cards. If the account has insufficient funds, how will the company get money for the damage from a debit card?

The primary reseason why rental companies ask for a credit card is that simple…

With that knowledge about the importance of credit cards for rental companies, now, let’s see what benefits you can avail of if you pay them through a credit card.

With a credit card, you can claim expenses during any dispute before your ‘cash’ is affected.

If you are wondering about whose credit card you should use, remember it should be in the driver’s name. That’s your name!

Moreover, do you know all credit cards come with some limit? You can spend a particular amount in a month. If you have crossed your credit limit, your credit card is maxed out.

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Can I Rent A Car If My Credit Card Balance Is Maxed?

Maxed credit cards may cause issues such as declined transactions, poor credit scores, and a rise in monthly payments due to add-up costs.

Some rental car companies allow you to use a maxed-up credit card, and you may have to pay an additional amount for that, whereas other credit card companies will not allow you to use your credit card if you have crossed its limit.

It’s better to ask your rent-a-car company and see what alternatives they offer if your main credit card balance is maxed.

If you have a bad credit history affecting your credit score, you might need to think twice if to use a credit card again for a luxury you may not be able to afford.

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Let me explain that better in the next section.

Do Rental Car Companies Check Your Credit Score or Credit Worthiness?

Are you worried that your credit score will matter in the rental car company process? Some rental luxury car companies do check credit card scores. It helps them in deciding if you are capable of paying their invoices and bills on time or not.

By going through your creditworthiness check, they will make sure that you don’t have any trouble paying incidental charges or post-accident damages.

Furthermore, your credit score should be between 620 and 680 for you to stand up as having a strong credit history.

Now, you must be wondering if you could rent a car with a bad credit score. Customers with poor credit scores can be a liability for a rental car company, especially if they rent you a luxury or prestige car.

In such a case, you can still hire a car, but you won’t get a luxury car.

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What Is Rent-A-Car Credit Card Hold Amount?

Many luxury rental car companies place a hold on your credit card when you pick up your rental car. This hold amount equals rental costs added to 15-25% of estimated rental charges or specific deposit amount.

For instance, if your rental car expenses are around $750, then your credit card hold will be around $750 plus a deposit amount.

When you return your car to the rental car company, the hold gets removed, and your credit card owes the original rental car charges to the company.

Keep in mind that if you return your car to them in a damaged condition, you may have to pay additional charges from your pocket. If you have Excess Insurance, that fee is claimable from the insurance. Otherwise, that is an additional out-of-pocket cost to you. And, that wouldn’t be a happy day for you!

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How to Rent a Car Without A Credit Card?

Sometimes you may not have a credit card, and you want to book a rental car. In such a case, a rental car company may allow you to rent a car with a debit card or cash.

Most rent-a-car companies decide on such approval case by case basis after listening to your story.

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Renting A Car With A Debit Card

If you hire a car using your debit card, you may have to face strict requirements, such as

  1. Give a company your debit card direct-debit approval, and show them the original Visa or MasterCard.
  2. Deposit excess insurance costs, along with rental costs, before the rental.
  3. Provide a copy of your identification card.
  4. Provide a copy of your insurance proof.
  5. Let the company check your credit score.
  6. Show them your return ticket if you are at an interstate or international destination.

Examples of rental car companies that let you hire a car with a debit card are as follows.

1) Avis

Avis accepts credit cards or prepaid gifts as a form of payment.

To be eligible for hiring at Avis, you have to meet the following requirements:

a) You must be at least 25 years of age.

b) Your bank account should have enough money at the time you hire the rental car.

c) There are certain premium car models for which Avis requires you pay only through your credit card.

For such models, you can only use Avis Charge Card, American Express, AT&T Capital, China Union Pay, Diners Club International, Discover, GE Capital, JCB or Sears cards.

2) Budget

The budget requires you to use a debit card at some rental car pick-up locations. To know this, you must contact the company branch from which you plan to collect the car.

3) Dollar

With a top-notch Dollar, you only need your debit card and license to pay the amount after booking a car in advance. If you fail to book your car in advance, Dollar still allows you to pay with your debit or credit card.

But, in that case, you need a different card along with a return travel ticket. Essentially, this means you expose multiple cards.

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4) Enterprise

Enterprise asks you for a Visa card, Master card, or Discover Card, along with the outgoing flight proof where you drop off the car.

However, Enterprise is really strict when it comes to renting a car with a debit card. You have to present your insurance proof, utility bills, and references.

Renting a luxury car without a credit card is always tricky. The below tips might put you in a good position for it, though.

4 Tips To Rent A Luxury Car Without A Credit Card

1) Your account should have enough cash because you should pay a security deposit along with the full rental cost.

2) You shouldn’t forget to provide proof of return travel to your rental car company.

3) Don’t get annoyed if your rental car company checks your creditworthiness. It’s a part of their due diligence process.

4) Some rental car companies pose age restrictions.

For instance, some companies may expect you to be at least 30 years to be eligible for hiring a luxury rental car.

Can You Rent A Car With A Prepaid Card?

A prepaid card helps you shop for the things you want using its cash balance. The card has money on it, which helps you shop.

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You get the following benefits using a prepaid card:

1) If you are not carrying cash, prepaid cards have your back.

You can get a prepaid card with Eftpos, Visa or Master card.

2) You don’t have to bear the responsibility of paying any ‘deposit’ bill since you own the money.

Zero liability means zero stress and frustration.

3) You don’t have to use your bank account when you carry a prepaid card in your pocket.

4) Oh yes, you don’t need to worry about your credit history–poor or good–prepaid card will still work.

However, prepaid cards have excess fees, and you might have to pay fees when you activate your card, add money to your card, use the card to purchase something, utilize it as an ATM, or every time you check your balance.

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How To Hire Luxury Car With A Prepaid Card?

Now, if you are wondering how to hire a luxury car with a prepaid card, we got you covered here.

Some rental companies don’t accept prepaid cards for hiring a car, and the ones who do put massive restrictions.

Following are the obstacles that you may face while using a prepaid card for hiring a car:

1) Rental car companies will first check your auto insurance or excess insurance policy.

Make sure that your policy has collision coverage for a rented vehicle. If you don’t fit into their criteria, you may have to buy a collision damage waiver, which will have your back in case of any loss to the rental car.

2) When you book a rental car with a prepaid card, you may have to pay the rental cost and a deposit fee.

You will get your deposit fee back after 14 days or so of returning your vehicle.

Identification for verification purposes is important too. You will be asked to show your driver’s license along with proof of your return travel.

In addition, you need to fill out forms that will check your address, employment, auto/home insurance, bills, bank details and mortgage statement.

3) If the rental car agency is situated outside an airport, your prepaid visa cards are more likely to be accepted.

Furthermore, to make sure that the rental car agency accepts your card, you should have enough funds in it.

Last but not least, if you wish to pay using a prepaid card, first, reserve a rental car using your credit card, and the rental car agency will place a hold on your credit card so as to include additional fees, losses, or damages.

In short, a prepaid credit card is a useful tool that lets you spend in a controlled manner.

There are some rental car companies that let you pay using a prepaid card. We have shed light on those companies in the next section.

Here we covered the Best Luxury Car Rental Companies in Australia that would also allow you to rent a car with a debit card.

American and international companies that would consider you renting a car using a debit card is covered below.

6 International Companies That Let You Rent A Car Using Prepaid Card

Now, let’s talk about rental car companies that let you hire a car using your prepaid card. But before we begin, you have to keep in mind that though some companies may allow you to book a rental car with your prepaid card, they may only do so at the rental office location.

1) NextCar

The company is a franchised rental car company that is run by a team of experts who outstand among their competitors. The main principles upon which NextCar runs are painstaking market research and analysis, world-class customer service, and professionalism.

NextCar does accept prepaid car booking only if you do that in person. Another condition is that the renter’s name should be written on the prepaid card, or else you have to use your credit card.

Rental deposits start at $150.

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2) Rent-A-Wreck

The rental car company was earlier owned by other rental car companies. What makes this company outsmart its rivals is the beautiful fact that they give opportunities to even young drivers as well as those with bad credit scores. What else an individual wants?

Fortunately, Rent-A-Wreck accepts prepaid card payments as long as you provide them with your authentic identity card and insurance proof.

If you are wondering about a rental deposit, it varies according to the car type and length of rental.

3) Hertz

The American rental car company, Hertz, has 12,000 corporate and franchise locations in America, Australia and all around the world.

Their rental deposit starts from $200. They also accept credit card or debit card payments. You can get rates online too.

4) National Car Rental

It’s a private rental car company owned by Enterprise Holdings that allows its customers to pick up their vehicles without filling out many forms or dealing with customer care representatives.

If you ask about a rental deposit, it varies from location to location, and you have to pay a minimum of $200.

If you don’t want to hire a rental car using your prepaid card, you can use a debit or credit card, or even cash, depending on the branch you deal with.

5) Thrifty Car Rental

Thrifty car rental is a part of Hertz Corporation, whose headquarters are situated in Florida.

To hire a rental car from the company, you have to pay a minimum of $200 as the rental amount. Credit cards, debit cards, or cash payments are acceptable, depending on the location.

6) Payless Rent a Car

The Payless rental car company is owned by Avis Budget Group, also situated in Florida.

The classes of cars they offer for rent include economy cars, compact cars, intermediate cars, standard cars, full-size cars, Midsize SUVs, Mini Van, Full-size SUVs, and some luxury cars too.

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Different companies have different payment methods for hiring a car. However, this policy is likely to be stricter if you want to rent a luxury car. If you want to rent a Lamborghini, the process would be even stricter.

You can pay through a debit card, credit card, and even prepaid card, depending on the company you deal with. Companies like Enterprise, Avis, and Hertz let you hire a car if you meet their strict requirements. Small companies like Rent A Prestige Car in Adelaide follow a more lenient approach.

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