Credit Card for Car Rental

tgh_2

I am planning a holiday in the US for 2 weeks in August. For the first 10 days we will need car rental, as we plan to do a small road trip.

I looked up prices over the weekend and one website has came out cheapest but is asking for a credit card upon arrival as a deposit.

None of us currently have a credit card, but I have been considering it for a while to get my credit rating up. Would it be a good idea to get a card at 0% for say 12-18 months, use it as deposit and then cancel before the 12 months are up?

I would maybe use it for a couple of extra bits and bobs (£100-200 worth) but that would then be paid off at the end of the month (August).

Thanks for any help

MallyGirl

If you don't currently have a credit card you might struggle to get a 0% one - try the eligibility checker in here.

Not sure I understand what you mean about the deposit and cancelling

tgh_2

Sorry I should explain better, we can pay the fee for the rental from any card but once we arrive they need to take a credit card details for guarantee - in case we run off or damage car etc.

I had planned to get a card now, spend the £200 then pay it off and cancel the card before the end of the 0% period. I'd also use the card for the guarantee but nothing would actually come off the card.

[Deleted User]

Having a card for a few months and then cancelling will have a small benefit to your credit report, but it would be better to make regular use of it on a longer term basis.

tgh_2

Deleted_User wrote: »

Having a card for a few months and then cancelling will have a small benefit to your credit report, but it would be better to make regular use of it on a longer term basis.

I may keep it on, and just buy things that I know I can pay for.

But will I have issues getting the car if I don't previously have one?

I'm 21 and still at home (although moving out soon but without confirmed date I wouldn't tell them) and earning just over £20k?

greenorange

tgh wrote: »

I may keep it on, and just buy things that I know I can pay for.

But will I have issues getting the car if I don't previously have one?

I'm 21 and still at home (although moving out soon but without confirmed date I wouldn't tell them) and earning just over £20k?

Have you informed the rental company of your age, or did you run the quote with someone else's details?

The reason I'm asking is because most US car rentals require you to be 25. I've only ever used one company that rented to 21 year olds, and the deposit was huge!

SuperHan

If you intend to pay the deposit balance off in full at the end of the month, you don't need to get a 0% card (which may be difficult to come by in your situation). Get any credit card you like - maybe one that offers cash back or some form of reward - and set up a direct debit to pay it in full.


Put the deposit on the card, and about 30 days later (depending on statement dates and due dates) the amount will come out of your bank and pay the credit card with no interest due.

If you are doing the transaction in USD, it may be worth looking at the cards that have low overseas transaction fees (such as Halifax Clarity, Nationwide). There is some advice in the credit cards section.

Otherwise, the best place to start is your own bank.

GingerBob_3

Hiring a car without a credit card is all but impossible these days. Don't forget that when they take a swipe of your card as a guarantee you are, in effect, agreeing to them having unfettered access to your card account. They can take what they want, when they want, up to years later in some extreme cases. Their strategy is plunder your account now, ask questions later! Be careful and watch your account closely after the hire.

MPH80

greenorange wrote: »

Have you informed the rental company of your age, or did you run the quote with someone else's details?

The reason I'm asking is because most US car rentals require you to be 25. I've only ever used one company that rented to 21 year olds, and the deposit was huge!

I just did a quick check on this because I remembered the same.

Hertz and Avis will both rent to an under 25 in the US - but they both add a $20 a day surcharge for it!

That's almost as bad as their car seat rip off charges.

countingstars

Get the Capital One Classic Extra, if you can.

It's free to use abroad and it's a cashback card.

tgh_2

greenorange wrote: »

Have you informed the rental company of your age, or did you run the quote with someone else's details?

The reason I'm asking is because most US car rentals require you to be 25. I've only ever used one company that rented to 21 year olds, and the deposit was huge!

Ye I did, adds an extra £100 on! We're using TripWheels who put a one off charge onto the rental rather than a charge for each day.

I think we need to pay upfront, and take a voucher with us. But their FAQs say we need to bring a credit card which will be used as guarantee (so no money will come off).