Car Hire and Credit Card Question

ea6mcu

Hello,

I'm looking to hire a car in Switzerland this summer for the first time. I'm a little confused about credit card charges when I pick the car up - ie the excess.

Do the car hire company charge the excess amount to your credit card? My understanding is that this could be £500 or more?

My only credit card only has a limit of £250. Does this mean I won't be able to pay the excess, or do the car hire company just put a "hold" on the card and not physically charge the amount - will a £250 limit prevent me hiring a car?

And before anyone suggests increasing my credit card limit - that is not an option!!

thanks in advance

Mike

richardw

They need to reserve the excess amount on your card, you'd need a credit limit big enough for this.

mamparra

As far as I know - and have had painful experience in the past - while the amount they hold against your card doesn't actually come off 'physically' it does come off your limit so I don't think you'd be able to do it. The reason I know is that I had a few rentals in between internal flights in South Africa some years ago and in those days it could take a few days for them to remove the hold so if your limit is low (as mine was then) you can get into the embarrassing situation of not being able to 'afford' the next rental as you get them all accumulated with the result of flattening your credit limit!

In your case this wouldn't happen - you just might not be able to get a car. Mind you, the reason for the 'excess' is usually the difference between the included insurance (sometimes called Collision Damage Waiver) and the full excess (however they calculate this value). Hence, if you took out the - normally expensive - additional insurance they would love to sell you, then you probably wouldn't be asked for any held credit for the excess. That might be a solution - but I don't think you'll get away with one of these (very good) 'excess' type insurances I might have recommended, as the hire company probably won't recognise it and would still want the excess hold.

Hope this helps - of course the obvious question is, if you're going to the expense of flying to Switzerland and hiring a car, wouldn't it be a good idea to ask for an increase on your credit limit anyway?!