Wondering if you can rent a car with a secured credit card? You’re not alone. Many people building their credit worry about being rejected at the rental counter. This is a common and valid concern.
Yes, in most cases, you can rent a car using a secured credit card, as long as it has a Visa or Mastercard logo and sufficient available credit. Car rental agencies treat secured cards like standard unsecured credit cards because they function on the same payment networks. The key is ensuring your credit limit is high enough for the rental cost and the security deposit.
Based on an analysis of current rental agency policies and cardholder agreements, this process is standard. This guide will show you exactly how much credit you need and the step-by-step process. You’ll learn which companies accept secured cards, helping you rent with confidence.
Key Facts
- High Acceptance: Secured cards with a Visa or Mastercard logo are generally accepted by major car rental agencies, which view them as a valid major credit card.
- The Authorization Hold is Key: Your rental will be declined if your available credit cannot cover the authorization hold, which typically ranges from $200 to over $500, on top of the rental cost.
- Credit Limit Matters: A secured card with a low limit (e.g., $300-$500) is very risky for car rentals; a limit of $1,000 or more is considered much safer to ensure approval.
- Secured is Not Prepaid: Rental agencies accept secured cards because they have a line of credit for holds, whereas prepaid cards, which only hold a cash balance, are almost universally declined.
- Agency Perception: The rental company’s payment system does not differentiate between a secured and an unsecured card; it only verifies the payment network (Visa/Mastercard) and the available credit.
Can I Rent a Car With a Secured Credit Card?
Yes, in most cases, you can rent a car using a secured credit card. Rental agencies primarily see the Visa or Mastercard logo, not whether the card is secured or unsecured. From their perspective, it functions just like a standard credit card. However, your success depends entirely on two critical factors: having a high enough credit limit and that limit being able to accommodate a significant authorization hold.
This authorization hold is a temporary charge the rental company places on your card to cover potential costs like damage, fuel charges, or late returns. It can range from $200 to over $500. If your available credit can’t cover both the estimated rental cost and this hold, the transaction will be declined. This is the single most common reason for rejection when using a secured card.
It is crucial to understand that while a secured card is a valid payment method, it is not the same as a prepaid card or a debit card. Each is treated differently by rental agencies due to the varying levels of financial risk they represent. Understanding these differences is the key to a smooth rental experience.
Why Do Rental Agencies Care? Understanding Secured vs. Prepaid vs. Debit Cards
Rental agencies accept secured credit cards because they provide access to a line of credit, allowing for an authorization hold. This hold acts as a security deposit for the agency. In contrast, they often decline prepaid and debit cards because the risk is much higher. A prepaid card only holds a fixed cash balance with no recourse for the agency if costs exceed that balance, and while some agencies accept debit cards, they often impose stricter rules.
From a rental company’s viewpoint, the type of card you use is all about risk management. They need a way to guarantee they can cover any unexpected costs. A true credit card, whether secured or unsecured, provides that guarantee through its line of credit. Here is how these cards compare in the context of a car rental.
| Feature | Secured Credit Card | Debit Card | Prepaid Card |
|---|---|---|---|
| Primary Function | Builds credit; requires a security deposit as collateral. | Directly accesses funds from a checking account. | Holds a pre-loaded cash balance. No bank account needed. |
| Rental Agency Acceptance | Generally Accepted (treated like a standard credit card). | Sometimes Accepted (with strict conditions). | Almost Always Declined. |
| Authorization Hold | Yes, placed against the card’s credit limit. This is why it’s accepted. | Yes, but funds are frozen directly from your checking account. | Cannot support a hold larger than its balance. This is why it’s declined. |
| Credit Check at Counter | No credit check is performed by the rental agency. | Often required if used for the security deposit. | N/A (as it’s usually not accepted). |
| Impact on Your Money | Ties up your available credit limit, affecting your credit utilization. | Freezes actual cash in your bank account, making it unavailable for use. | N/A. |
| Best For | Renting a car while building credit. | Emergency use if the agency allows it and you accept the terms. | Daily purchases, but not for renting a car. |
The bottom line is clear. A secured credit card works because it functions within the credit system rental agencies rely on. A prepaid card does not, making it an unsuitable tool for securing a rental vehicle.
How Much Credit Do I Need on My Secured Card to Rent a Car?
To rent a car with a secured credit card, your available credit limit must be high enough to cover the total estimated cost of the rental plus the rental agency’s security deposit hold, which is typically $200-$500. A safe minimum credit limit to aim for is between $800 to $1,000 to avoid any issues at the counter. Having a limit lower than this is very risky.
The most important calculation you can do is to figure out your required credit before you even book. Use this simple formula to determine the minimum available credit you’ll need.
Required Limit = (Daily Rental Rate x Number of Days) + Security Deposit Hold
For example, imagine your rental costs $50 per day for three days ($150 total) and the agency requires a $300 security hold. You would need at least $450 in available credit on your secured card. If your card has a $500 limit and you already have a $100 balance, your available credit is only $400, and your rental would be declined.
Pro Tip: Before you travel, log in to your credit card account online or call your credit card company to confirm your exact available credit. Do not guess. Knowing this number is the most critical step to ensuring a successful rental.
What Are the Step-by-Step Instructions for Renting a Car with a Secured Card?
To successfully rent a car with a secured card, you must first confirm your available credit can cover the rental and the hold, then book your reservation, and present your physical card and matching ID at the counter. After returning the car, you need to monitor your statement to ensure the hold is released. Following these steps methodically will prevent most common issues.
Step 1: How Do You Prepare Before Booking?
Before you make any reservation, a little preparation is essential. This prevents being declined at the counter. Based on our experience, these pre-booking checks are the most critical.
* Verify Your Available Credit: Log in to your credit card’s mobile app or website to see your exact available credit. Ensure it’s enough to cover the rental and the hold.
* Call the Specific Rental Location: Do not rely on the national hotline or website. Call the exact branch where you plan to pick up the car. Ask them two questions: “Do you accept secured credit cards?” and “What is your exact authorization hold amount for the vehicle class I want to rent?”
* Check Your Card’s Benefits: Some secured cards offer a Collision Damage Waiver (CDW). Check your cardholder agreement to see if you have any coverage, as this could save you money on insurance.
Step 2: How Do You Book the Reservation?
When you’re ready to book, how you pay can make a difference. It is safest to choose the “Pay at Counter” option rather than prepaying online. This ensures you can confirm all policies with a live agent before any charges are made to your secured card. Prepaying can sometimes lock you into policies that might not work with your card, creating a hassle if you need to cancel.
Step 3: What Happens at the Rental Counter?
This is the moment of truth. To ensure everything goes smoothly, have your documents ready. At the rental counter, you must present a valid driver’s license and your physical secured credit card. Both documents must have the exact same name. The agent will then process the authorization hold and have you sign the rental agreement. Be prepared to show any other required ID as well.
Step 4: What Should You Do After You Return the Car?
The process isn’t over when you drop off the keys. After returning the rental car, keep your final receipt and monitor your secured credit card account online. The authorization hold should be released and disappear from your pending transactions within 7-10 business days. If it does not, contact the rental agency’s customer service with your receipt and contract number to inquire about the delay.
Which Major Car Rental Companies Accept Secured Credit Cards?
Major car rental companies like Hertz, Enterprise, and Avis generally accept secured credit cards as long as they carry a Visa or Mastercard logo and have sufficient available credit for the authorization hold. According to their verified rental policies for 2026, these cards are treated the same as unsecured credit cards. However, it’s crucial to understand that policies can differ at franchise-owned locations.
⚠️ Always Call Ahead! Franchise locations, especially in smaller towns or airports, may have stricter rules than corporate-owned stores. A quick call to the specific branch to confirm their policy is the best way to avoid surprises.
Hertz
Hertz’s official policy documentation indicates that they accept all “major credit cards” with the Visa or Mastercard logo. A secured card falls into this category. You must have sufficient available credit to cover the estimated charges plus the authorization hold.
Enterprise
Enterprise Rent-A-Car also accepts secured credit cards under their standard credit card policy. The cardholder’s name must match the driver’s license, and the card must have enough available credit for the rental costs and deposit.
Avis
Avis car rental policies state that they accept credit cards from major networks. A secured Visa or Mastercard is accepted, provided it can handle the authorization hold. As with other agencies, the name on the card must match the primary renter’s driver’s license.
FAQs About can i rent a car with a secured credit card
Will renting a car with a secured card hurt my credit score?
No, the act of renting a car itself will not directly hurt your credit score. Rental agencies do not perform hard credit inquiries for credit card rentals. However, the authorization hold will temporarily increase your credit utilization ratio, which can cause a small, temporary dip in your score until the hold is released.
What happens if I don’t have enough available credit for the hold?
The rental agency will decline your rental. This is the most common reason for rejection when using a secured card. There is no way around the authorization hold, so you must ensure your available credit is sufficient before you arrive at the counter.
How long does a rental car authorization hold last?
The hold is typically released within 24-48 hours of returning the vehicle, but it can take 7-10 business days for it to completely disappear from your account. The hold remains for the duration of your rental and is removed once the final charges are settled.
Can I use a Chime Credit Builder card to rent a car?
It is highly unlikely, as the Chime Credit Builder Secured Visa® Credit Card functions differently than a traditional secured card. It does not have a traditional credit limit for agencies to place a hold against. Most rental agencies will decline it for this reason because they cannot secure a deposit.
Do I need to buy the rental agency’s insurance if I use a secured card?
Your secured card may offer some level of Collision Damage Waiver (CDW) coverage, but it is often secondary insurance. You must check your specific card’s benefits guide to confirm. It is crucial to understand what is covered and decide if you need to purchase the agency’s primary insurance for full protection.
Can I use someone else’s secured credit card to rent a car?
No, you absolutely cannot. The name on the credit card must perfectly match the name on the primary driver’s license. This is a strict fraud prevention policy across all major rental agencies with no exceptions.
What’s the minimum credit limit I should have on a secured card for renting?
A minimum credit limit of $500 is risky, while $1,000 or more is much safer. The ideal limit depends on the rental cost and the agency’s hold amount. A higher limit ensures you have enough buffer for the rental charges, the hold, and to keep your credit utilization from maxing out.
Do rental car companies know my card is secured?
No, they do not. To the rental agency’s payment system, a secured Visa or Mastercard looks identical to an unsecured one. They only see the payment network (Visa/Mastercard), your name, and whether you have sufficient available credit for the authorization hold.
Can I pay for the final rental with a debit card after using a secured card for the hold?
Yes, most rental agencies will allow this. You can use your secured credit card to secure the reservation and the authorization hold. Then, upon returning the car, you can ask to pay the final bill with a different method, such as a debit card or cash, where accepted.
What should I do if my secured card is declined at the counter?
First, politely ask the agent for the specific reason. If it’s due to an insufficient credit limit, there is little you can do. If it’s a policy issue with that specific location, you could try calling another rental agency nearby to see if they have a different policy, but your options will be very limited without a backup plan.
Final Thoughts
Renting a car with a secured credit card is not only possible but can be a seamless process with the right preparation. By understanding the mechanics of authorization holds and ensuring your credit limit is sufficient, you turn your credit-building tool into a key for your travel plans.
- Yes, It’s Possible: You can rent a car with a secured credit card from most major agencies like Hertz and Enterprise, as they are treated like standard credit cards.
- Credit Limit is King: Your success hinges on having a high enough available credit limit to cover the total rental cost PLUS the agency’s authorization hold, which is often $200-$500 or more.
- The Formula for Success: Before booking, calculate
(Rental Cost) + (Security Hold Amount)to ensure it is less than your available credit limit. A minimum limit of $1,000 is recommended for 2026. - Not All Cards are Equal: Secured cards work because they have a credit line. Prepaid cards and some fintech cards (like Chime Credit Builder) are almost always rejected because they lack this feature.
- Always Call the Local Branch: Corporate policies are a guideline, but franchise-owned locations can have stricter rules. A quick call to the exact location you’re renting from can prevent surprises.
- Prepare for the Hold: The authorization hold will tie up a significant portion of your credit limit, temporarily increasing your credit utilization. Plan for this and ensure the hold is released within 7-10 business days after returning the car.
- Documentation Must Match: The first and last name on your driver’s license must be an exact match to the name on your secured credit card. There is no flexibility on this rule.
Ultimately, using a secured credit card to rent a car is an excellent way to travel while continuing to build your credit history. By following the steps outlined here—verifying your credit, understanding the policies, and communicating with the rental agency—you can avoid surprises and enjoy a smooth rental experience.
Last update on 2026-02-23 / Affiliate links / Images from Amazon Product Advertising API
