Most car rental companies require a credit card, but debit cards and cash deposits are sometimes an option
You do not automatically need a credit card to rent a car. Many rental companies will accept a debit card instead — but they will run a hold on your account that can be larger than the actual rental cost, and the hold can take days to release after you return the car. Some companies accept cash with a substantial deposit, though this is less common and usually only at airport locations. The catch is that rental companies use these holds partly as a security measure and partly to verify you have the funds available, which is where credit history enters the picture.
If you have a credit card, the rental process is straightforward: you provide the card at pickup, the company authorizes a hold (typically $200 to $500 above the rental cost), and the hold releases within a few days of return. If you do not have a credit card, you will face longer holds on a debit card, higher cash deposits, or outright rejection at some locations. This matters because a $400 hold on a debit card with $600 in it can leave you unable to pay other bills for a week.
Key Takeaways
- Debit cards work at most major rental companies, but the hold placed on your account is often larger and lasts longer than with a credit card.
- Cash deposits are accepted by some companies but usually require $500 to $1,000 upfront and are not available at all locations.
- Some rental companies will not rent to you without a credit card if you are under 25, even if you have a debit card.
- A credit card hold does not charge you money — it simply blocks funds temporarily — but the timing of the release varies by your bank and the rental company.
- Building credit history through a credit card can lower insurance rates and improve your terms at rental companies over time.
How rental companies use holds to protect themselves
A hold is not a charge. When you rent a car with a credit card, the rental company places an authorization hold on your card for an amount above your actual rental cost. This hold tells your credit card issuer to set aside that money, but it does not actually deduct it from your account. The hold is released after you return the car and the company processes the actual charges, which usually takes three to five business days.
With a debit card, the hold works the same way in theory — the bank sets the money aside — but the practical effect is different. The funds are no longer available to you while the hold is active. If you rent a car for $150 and the company places a $400 hold, you cannot spend that $400 even though you will only be charged $150. The hold can remain in place for five to ten business days, depending on your bank's policies and how quickly the rental company submits the final charge.
Rental companies use holds because they need assurance that you can cover damage, fuel, tolls, or other charges that might not be known until after you return the vehicle. A credit card company guarantees payment to the rental company; a debit card or cash does not, so the company protects itself by holding a larger amount.
Renting with a debit card instead of a credit card
Most major rental companies — Enterprise, Hertz, Budget, Avis, National — accept debit cards, but the terms are stricter than with a credit card. You will typically need to present a debit card in your own name at the time of rental, along with a government-issued ID and proof of insurance. Some companies require you to bring a recent utility bill or bank statement to verify your address.
The hold placed on a debit card is often $300 to $500 or more, depending on the company and the rental location. This is higher than the hold on a credit card because the rental company has no may provide of payment if the charge is disputed. The hold can take longer to release — sometimes up to two weeks — because debit transactions move through different banking channels than credit transactions.
If you are under 25, many companies will not rent to you with a debit card at all, even if you meet their age requirements for credit card rentals. This is because younger renters are statistically more likely to cause damage, and the company wants the additional protection a credit card provides. If you are under 25 and do not have a credit card, you may be limited to a few companies that accept debit cards in this age group, and you will likely pay a young driver surcharge on top of the rental cost.
Paying with cash or a prepaid card
Cash rentals are possible but uncommon. Some companies accept cash at airport locations, but you will need to provide a substantial deposit — often $500 to $1,000 — in addition to the rental cost. You will also need a credit card to hold the deposit, even if you are paying the rental itself with cash. This defeats the purpose for most people without a credit card.
Prepaid cards (cards you load with your own money in advance) are treated like debit cards by rental companies. The same holds apply, and the same restrictions may apply if you are under 25. A prepaid card does not build credit history, so it offers no long-term benefit beyond avoiding a credit card for this single transaction.
Why rental companies care about your credit history
Rental companies do not always run a full credit check, but they do verify that you have a valid payment method and sufficient funds. A credit card signals to the company that a financial institution has already vetted you — that you have been approved for credit and are making payments on time. A debit card or cash signals only that you have money right now, not that you are reliable over time.
If you have poor credit or no credit history, you may still rent a car with a debit card or cash, but you will face higher holds, longer release times, and possible rejection at some locations. Building credit through a credit card — by using it for small purchases and paying the full balance each month — can make future car rentals easier and cheaper. Over time, a stronger credit history can also lower your car rental insurance rates and improve your terms with other companies.
What happens if you damage the car or incur extra charges
If you damage the rental car or incur charges for fuel, tolls, or late return, the rental company will charge these amounts to your payment method after you return the vehicle. With a credit card, the charge appears on your statement and you pay it with your regular bill. With a debit card, the charge is deducted directly from your account, and the hold is adjusted to cover the actual total.
If the final charges exceed the hold amount, the rental company will attempt to charge the difference to your card. If you do not have sufficient funds, the charge may be declined, and the company may pursue collection or legal action. This is why the hold is set high — to reduce the chance that the final bill will exceed what the company has already secured.
With cash, you typically pay damage or extra charges upfront before leaving the rental location. If you do not have enough cash on hand, you may be asked to provide a credit card or debit card to cover the difference.
Building credit so you have more rental options
If you do not have a credit card now, opening one and using it responsibly can expand your options for car rentals and other services. A credit card used for small, regular purchases and paid off in full each month builds a positive payment history. After a few months of this pattern, you will have a credit history that rental companies recognize, and you will may have access to for better terms.
You do not need to carry a balance or pay interest to build credit. In fact, paying interest is wasteful. The goal is to show lenders and service providers that you borrow money and repay it reliably. A rental company sees this history and trusts you more, which means lower holds, faster release times, and fewer restrictions based on your age or location.
If you are new to credit cards, look for a card designed for people building credit — often called a secured credit card or a student card. These cards have lower credit limits and may require a deposit, but they report to the credit bureaus just like a regular card, and they help you establish a credit history that benefits you across many services, including car rentals.
Frequently Asked Questions
Can I rent a car with just a debit card and no credit card at all?
Yes, most major rental companies accept debit cards. However, the hold will be larger and last longer than with a credit card, and some companies will not rent to you if you are under 25. You will also need to provide additional documentation like a utility bill or bank statement to verify your address.
How long does the hold stay on my debit card after I return the car?
Holds typically release within three to ten business days, depending on your bank and the rental company. Credit card holds usually release faster than debit card holds. If the hold has not released after two weeks, contact your bank and the rental company to ask about the status.
What if I do not have enough money in my debit account to cover the hold?
The rental company will decline your debit card if there are not sufficient funds available. You will need to provide a different payment method — another debit card, a credit card, or cash — or you will not be able to rent the car.
Does renting a car with a credit card hurt my credit score?
No. A hold is not a charge, so it does not appear on your credit report. The rental company may perform a soft inquiry to verify your identity, which does not affect your score. Only actual charges and missed payments affect your credit.
Will a prepaid card work the same way as a debit card?
Yes, rental companies treat prepaid cards like debit cards. The same holds apply, and the same age restrictions may apply if you are under 25. Prepaid cards do not build credit history, so they offer no long-term benefit for your credit profile.