Don't use your debit card for car rental

[mickeyd]

I have never tried to use a debit card to rent a car, in fact I never considered it. Probably a good idea to not use it.

Most of the major rental companies require a credit card to initiate the rental, even if a debit card will be used to make payment upon return of the car. And most companies will accept only a co-branded Discover, Visa or MasterCard debit card.

Those companies that do allow a rental with a debit card often put an authorization hold on the debit card during the rental, usually between $300 and $500. Yes, the unused funds will be returned to your account after you return the car, but it might take up to two weeks for the funds to be released back to your account.

http://www.bankrate.com/nltrack/news/cc/20061122_debit_card_car_rental_a1.asp

 

[Nords]

I haven't seen anything that makes a debit card preferable to a credit card. But I've seen plenty of drawbacks!

 

[youbet]

I haven't seen anything that makes a debit card preferable to a credit card. But I've seen plenty of drawbacks!

I agree. I have searched and searched and can't come up with a reason to bother getting a debit card.

 

[saluki9]

I agree. I have searched and searched and can't come up with a reason to bother getting a debit card.

Well until now I have not either. But yesterday my bank offered me 5,000 AA miles for signing up for a debit card and it only cost me $25. Thats a bargain

Of course I will never use the card, but hey

 

[kramer]

I will probably be changing banks next year if I semi-FIRE at that time. I currently use a debit card for most of my credit type transactions and this does not sound optimal. My only other credit card is tied to my employer and I don't know if I will be able to keep it.

So I guess I just need to be sure that the new bank (I will probably go with an internet bank and/or HSBC) has an "ATM-only card option" instead of a "debit card option?"

If I am semi-FIRED, do you think I will have trouble getting a credit card? I would like to have two. I would also like to have multiple ATM cards -- I currently have a paypal ATM card and this debit card I mentioned earlier.

Kramer

 

[mickeyd]

it only cost me $25

You had to purchase the debit card?

 

[martyb]

I haven't owned a credit card in several years. I ONLY carry a debit card, & use it frequently. I've rented numerous vehicles with it over the years with nary a problem. I have had enough non-card related issues with various rental car agencies that I only do business now with Hertz. The rest of those jokers can kiss my ***! The one & only actual credit card that is in my wallet is my U.S. Government, official business only, MasterCard. As implied, it's only for business & I'd get my hiney in a crack if I used it otherwise. I'd say I use the debit card on practically a daily basis as I usually don't have much or any ca$h on me. I also use the debit card for internet purchases. No problemos.

 

[Anansi]

No opinion on the debit/credit card issue, but I worked on a large project with the Hertz corporation several years ago and will never rent a car from them. A terrible company to work with and they treat their employees very badly. Too expensive as well.

 

[Bob_Smith]

If I am semi-FIRED, do you think I will have trouble getting a credit card?

kramer, I got a credit card after retiring. At the time, I hadn't used credit in so long that I had completely fallen off the credit system's radar. It had been 10+ years since I had any type of loan. So I emailed my credit union, explained the situation, and they gave me a card. Shortly thereafter I was inundated with offers.

 

[saluki9]

You had to purchase the debit card?

Yes, because it was an American Airlines branded debit card from Citibank.

Don't forget that I got 5,000 AA miles for getting the card. That equals half a cent per mile.

Every year my wife and I fly to Hawaii on free tickets which would cost us $900 each if we paid cash. That means each mile is valued at 2.5 cents.

That is a bargain for me.

 

[youbet]

I haven't owned acredit card is several years. I ONLY carry a debit card

But have you found any advantage to the debit card over a credit card?

 

[martyb]

In general, I'm just trying to keep myself out of situations where I could incurr anymore debt. I'm trying hard to avoid any & all credit situations. Not saying I'm debt free at the moment, but credit card debt just seems to have a way of creeping up on you(me). I have a mortgage and a current HELOC, but I intend to settle them both out in the next 6 months, less I hope! Credit cards are way too easy to use. Maybe it's a self-control issue for me.....yeah, I'm sure that's what it is! : Anytime I think about using the debit card, I have to consider what's in my checking account and what effect it would have on other obligations (like bills, groceries) etc. My wife & I use the debit card for everyday expenditures. Last night, we ate out & paid with the card. Today, when she buys groceries, she'll use the card. We just use is as another tool, an extension of our checkbook. Works for us. Just gotta be sure to save receipts & log 'em in the checkbook for balancing.

 

[youbet]

In general, I'm just trying to keep myself out of situations where I could incurr anymore debt. I'm trying hard to avoid any & all credit situations.

OK, makes sense. I'm just trying to be sure I'm not missing out on anything by using a credit card and not even having a debit card. Debit cards have become so popular and are advertised so much, I keep wondering if I'm overlooking some advantage.

DW and I haven't had a credit card balance in over 30 years despite using a credit card almost daily. We're probably too conservative, but that's how we're comfortable.

 

[mickeyd]

DW and I haven't had a credit card balance in over 30 years despite using a credit card almost daily. We're probably too conservative, but that's how we're comfortable.

I don't think that it is too conservative. I just think what you have done is just plain smart. This is the way I have done it for a long time also and I really have never considered doing it any other way.

 

[mathjak107]

becareful- not all debit cards have fraud protection like a credit card does