5 Tips for Renting a Car with a Low Credit Score
As a renter or car shopper, you can pick up all kinds of useful strategies for getting the best deal possible on your next car purchase. But what about when it comes time to rent a car? What are the tricks for maximizing value when you don’t have high enough credit to qualify for that luxury sedan? That’s where being able to drive with an under-25 credit rating comes in handy.
Here are five tips that may help you get that great rental deal:
1) The smaller the deposit, the better –
It may be tempting to put down a huge amount up front just so you’re not going through this process again any time. But smaller deposits mean less risk for the rental company, which means you’re more likely to get a good deal.
2) Look for weekly or monthly rates –
These often provide better value than daily rentals. Also keep in mind that weekend rentals are usually cheaper than weekday ones, unless it’s peak travel season when everyone wants to get out of town at once.
3) Pay with your debit card –
Although they don’t always advertise this explicitly, some companies will let you complete your rental with just your checking account information. It won’t help if you have no credit history whatsoever (also known as having “thin file”), but for those who do qualify it can be an appealing option when trying to drive without high credit scores.
4) Be sure to get all of your money back –
If you’ve paid for gas, tolls or other extras, check to make sure it’s clear where you stand on getting any of that money back. Some companies have very strict policies regarding refunds while others are much more willing to give at least partial returns if you don’t use up all the fuel you paid for in advance.
5) Read the fine print when it comes to insurance costs –
Auto insurance is overpriced when you’re young (and when you’re old too), but this can be particularly extreme with rental cars. The last thing you want is to pay for coverage that doesn’t work out because your particular policy doesn’t cover rentals under a certain age limit.
Did you know that if you are under 25 years old you can get your own car insurance? The average cost for car insurance when you’re in the 20s is much lower than older drivers. Click here to start shopping for better auto insurance rates online today!
FAQs:
What is an under-25 credit score?
It’s often referred to as having “thin file” or lacking enough credit history for creditors to determine your ability to repay on time. While it varies by lender, most lenders require at least one open account in good standing before they will even allow you to check your rate. If you have no accounts in your name with responsible repayment activity, this usually means having thin or no file.
Which kind of car can I rent when my credit score is low?
When you rent a car without high credit scores, understand that the types of cars you get are limited based on what kinds of terms (if any) were negotiated with the rental agency. Some companies may only give discounts if you agree to rent an economy/compact car, while others limit what cars are available based on driving history.
What happens if I drive over the allotted miles? Will my credit score be affected?
Most companies charge you by the mile (usually around $0.20-$0.25), but some still use a flat rate system that doesn’t take your mileage into account. If you know how many miles you’re allowed to put on the vehicle before incurring extra fees, make sure not to exceed it because this can affect your best credit score.
Do I need insurance for my thin file credit score rental car?
Yes, even if your thin file limits what types of cars are available for renting, all companies will require car insurance. This is a legal requirement and it’s used for safety purposes in case you get into an accident without coverage.
What if I don’t have enough money to rent a car with bad credit scores?
If you’re having trouble finding the right rental company, consider asking family members or friends for help. They might be able to let you use their account information (as long as they are not minors) so that at least your driving history can be factored into your rental rate.
Conclusion:
Renting a car without good credit scores can be a hassle, but it’s not impossible to do as long as you’re patient and know what steps to take along the way. By gaining even just one or two accounts in your name during your twenties, you’ll give yourself a better chance of getting approved through the normal customer process rather than having to use special alternatives that either don’t exist or aren’t worth your time. With persistence and patience, you should be able to find a rental car company willing to work with you so doesn’t give up!