Yes, you can rent a car with a secured credit card, but the rental company will run a credit check and may place a larger hold on your card
Most major car rental companies accept secured credit cards for payment. Hertz, Enterprise, Avis, Budget, and National all take them. The catch is that rental companies treat secured cards differently than unsecured ones during the booking and pickup process. They will pull your credit report, verify your card is active, and often place a hold on your account that is larger than the actual rental cost — sometimes $200 to $500 extra depending on the company and the car class.
The hold exists because rental companies see secured cards as higher risk. Your card has a lower credit limit (usually $500 to $2,500), and the company wants to protect itself against damage charges, fuel costs, or tolls you might rack up. The hold is temporary — it releases back to your available balance once you return the car and they process the final charges — but it does reduce what you can spend elsewhere while the rental is active.
Whether a secured card works for you depends on your card's credit limit and how much of it you need for other expenses during the rental period. If your limit is $1,000 and the rental company places a $400 hold, you have $600 left to use. That matters if you also need to buy gas or pay for parking.
Key Takeaways
- Major rental companies accept secured credit cards, but they will run a credit check and place a temporary hold on your account that is larger than the rental cost.
- The hold typically ranges from $200 to $500 and is released after you return the car, but it reduces your available balance during the rental period.
- You will need a valid driver's license, proof of insurance, and a physical card at pickup — rental companies do not accept digital or virtual card numbers.
- Some rental companies offer lower holds or waive them entirely if you show proof of insurance or use a debit card as a secondary payment method.
- Budget and Enterprise tend to have lower hold amounts than Hertz or Avis, so calling ahead to ask about their specific hold policy can save you money.
What rental companies check before they accept your secured card
When you book a car online or at the counter, the rental company runs a soft credit inquiry to verify your identity and check for fraud flags. This inquiry does not affect your credit score. They also verify that your secured card is active and has enough available balance to cover the estimated rental cost plus their hold amount.
If your card is brand new (less than a few weeks old) or has very low activity, some companies may ask for a second form of payment or a cash deposit instead. This is not a rejection — it is a risk management step. Having a few small transactions on your secured card before you rent shows the company that the card is being used responsibly.
At pickup, you must bring the physical card itself. Rental companies do not accept digital wallet versions, screenshots, or virtual card numbers. You will also need your driver's license and proof of insurance. Some companies require the insurance to be in your name; others accept a family member's policy if you are listed as an authorized driver.
How the hold works and when it releases
The hold is not a charge — it is a temporary reservation of funds on your card. When you pick up the car, the rental company places the hold when ready. The amount depends on the car class, the rental length, and the company's internal policy. A compact car for three days might trigger a $250 hold; a full-size SUV for a week might trigger a $500 hold.
The hold stays in place until the rental company processes your final bill, which usually happens within 24 to 48 hours after you return the car. Once processed, the hold releases and the actual rental charge posts to your account. If you incurred damage charges or extra fuel costs, those are added to the final bill. If you stayed under budget, the hold straightforward disappears and your balance returns to normal.
During the rental period, the held amount counts against your credit limit. If your limit is $1,500 and the hold is $400, your available balance drops to $1,100. This is important if you plan to use the card for gas, tolls, or meals during the trip. Plan ahead and either use a different payment method for those expenses or choose a rental company with a lower hold policy.
Rental companies with lower holds on secured cards
Not all rental companies place the same hold amount. Budget and Enterprise typically place holds in the $150 to $300 range for standard vehicles. Hertz and Avis tend toward the higher end, $300 to $500. National and Alamo fall somewhere in the middle. These ranges vary by location and vehicle type, so calling the specific rental location before you book can give you an exact number.
Some companies offer hold reductions if you provide proof of insurance at booking. Others waive or reduce the hold if you use a debit card as a secondary payment method, though this is less common. A few regional rental companies are more flexible with secured cards because they serve customers with limited credit history, but they may charge higher daily rates to offset the risk.
If the hold is a problem, ask the rental company whether they accept a cash deposit instead. Some locations will take a refundable deposit equal to the hold amount, which gives you back the cash when ready after you return the car. This works if you have the cash on hand but does not help your secured card's available balance.
What to do if a rental company declines your secured card
If a company refuses your secured card at booking or pickup, ask why. The most common reasons are that your card is too new, your available balance is too low, or your credit report shows recent negative marks. If it is a balance issue, you can offer to use a second payment method for incidentals (gas, tolls, damage) and reserve the secured card for the base rental cost only.
If the company still declines, try a different rental company. Enterprise and Budget are generally more willing to work with secured cards than premium brands. You can also call the rental company's customer service line before you book to ask whether they accept secured cards and what their specific requirements are. Getting a yes or no in advance saves you a trip to the counter.
As a last resort, bring a co-signer with an unsecured credit card. Some rental companies will accept the co-signer's card for the hold and the rental, as long as the co-signer is present at pickup and agrees to be responsible for any charges. This is not ideal, but it works if you have no other options.
Tips for a smooth rental experience with a secured card
Book online rather than at the counter. Online booking gives the rental company time to verify your card before you arrive, and you can see the estimated hold amount before you commit. If the hold is too high, you can cancel and try a different company without wasting a trip.
Call the rental location 24 hours before pickup to confirm they have your reservation and that your secured card cleared their verification. Ask them to state the exact hold amount in writing or note it in your reservation. This prevents surprises at the counter.
Bring two forms of ID if possible — your driver's license and a passport or state ID card. Some rental companies ask for this, especially if your secured card is new or your credit report is thin. Having it ready speeds up the process.
Use a different payment method for gas, tolls, and meals during the trip. This keeps your secured card's available balance higher and reduces the chance that you will hit your limit if an unexpected charge comes through. Many gas stations and toll plazas accept debit cards or cash.
Return the car on time and in the condition you rented it. Any damage charges or late fees are added to your final bill and can delay the hold from releasing. If you notice damage when you pick up the car, photograph it and point it out to the rental agent so you are not charged for it later.
Alternatives if renting with a secured card is not practical
If your secured card's limit is too low or the rental company's hold is too large, consider renting from a peer-to-peer car sharing service like Turo or Zipcar instead. These services often have lower hold amounts or no holds at all, and some accept secured cards more readily than traditional rental companies. The daily rates are sometimes higher, but the flexibility can be worth it.
Another option is to ask a family member or friend with an unsecured credit card to book the rental in their name. You can still drive the car as an authorized driver, and the hold goes on their card instead of yours. Make sure they understand the financial responsibility and that you have a clear agreement about who pays what.
If you are building credit and plan to rent cars regularly, focus on increasing your secured card's credit limit. After six to twelve months of on-time payments, many issuers will raise your limit or offer to convert your secured card to an unsecured one. A higher limit makes future rentals easier and gives you more flexibility.
Frequently Asked Questions
Will renting a car with a secured card hurt my credit score?
The soft credit inquiry rental companies run does not affect your score. The temporary hold on your card does not hurt your score either — it is not reported as a charge or a late payment. However, if the hold causes you to exceed your credit limit and you carry a balance, that could lower your score temporarily.
Can I rent a car with a virtual or digital secured card number?
No. Rental companies require the physical card at pickup for identity verification and fraud prevention. Digital wallet versions and virtual card numbers are not accepted. You must bring the actual card in your name.
What happens if I return the car damaged and the hold is not enough to cover repairs?
The rental company will charge your card for the full damage amount, even if it exceeds the hold. If your card does not have enough available balance, the charge may be declined. You would then be responsible for paying the damage out of pocket or disputing the charge. This is why damage waivers and insurance are important.
Do I need rental car insurance if I have a secured credit card?
Your secured card does not provide insurance coverage. You need either your own auto insurance policy (which may cover rental cars), a rental car insurance policy from your insurance company, or the rental company's damage waiver. Check your personal auto policy first — many cover rental cars at no extra cost.
How long does the hold take to release after I return the car?
Most holds release within 24 to 48 hours after you return the car and the rental company processes your final bill. Some companies take up to five business days. If the hold has not released after a week, contact the rental company's customer service to ask about the status.