Bankruptcy gives individuals a second chance, but there may be a few complications right after exiting your bankruptcy, such as renting a car without a credit card. Below are a few tips on how you can rent a car after bankruptcy even if you don’t have a credit card:
- Use your debit card. Many major car rental agencies will accept your debit card as long as it has a MasterCard or Visa logo.
- Credit check. If you’re renting a car without a credit card, the rental company may do a quick credit check. Before they run your credit check mention your recent bankruptcy and ask how it will affect your ability to rent from them.
- Deposit. One of the tricky parts of renting a car with a debit card is that the rental company may hold a deposit on your card. This amount may be as little as $200 or as much as $500. Before you let them run your card, ask the rental agency how much of a deposit they will hold.
- Use alternatives. Companies such as Zipcar will allow you to rent their cars, at a higher daily fee, without a deposit. You’ll need to sign up at their website and pay an annual fee, but it may be worth the trouble to avoid large deposits being held on your debit card. They will also run a credit check, but they may not be as strict with credit requirements as some traditional rental agencies, and, for anyone coming out of bankruptcy, that’s a plus.
- International issues. Be careful renting internationally. In some countries a debit card may not be accepted to rent a car. In this case, you may want to stick with large American rental companies that have offices in the international cities you’ll be visiting.
If you’re just leaving bankruptcy and need to rent a car, you can do it with a debit card in most cases. However, consider getting a secured credit card to avoid the hassle of having your debit card cash tied up in holds.