BlackMetallic

Any Bankruptcy/bad credit friendly rental car companies?

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Long story short, I am in Chapter 7 and am surrendering my car. I am going to get a new car after I get the bankruptcy discharge (some 40 or so days from now), but need transportation in the meantime. I figured I'd just use my debit card to rent a car but have noticed a disturbing trend with some of the rental companies checking credit scores even if you use a debit card. Are there any car rental companies that are more friendly towards some of us with bad credit/bankruptcy on the credit report?

 

Thanks.

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You could always just bring in cash and prepa weekly.  pay for a week, go to turn in the car, and pay for another in cash.  They shouldn't need to check your credit as long as you have proof of insurance, and a valid drivers licence.  You can use your debit/credit just to secure, but pay the cash up front.

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Long story short, I am in Chapter 7 and am surrendering my car. I am going to get a new car after I get the bankruptcy discharge (some 40 or so days from now), but need transportation in the meantime. I figured I'd just use my debit card to rent a car but have noticed a disturbing trend with some of the rental companies checking credit scores even if you use a debit card. Are there any car rental companies that are more friendly towards some of us with bad credit/bankruptcy on the credit report?

 

Thanks.

 

It depends HEAVILY on where you are.  After the recession MANY rental car companies tightened up their requirements to rent using a debit card and the major ones typically do run credit and if you have bad credit it won't matter if you have 10,000 in the bank they won't do it.  Your best option is to start calling the ones near you and asking their branch policy on debit card use so you don't get there and suffer the humiliation of denial.  

 

You could always just bring in cash and prepa weekly.  pay for a week, go to turn in the car, and pay for another in cash.  They shouldn't need to check your credit as long as you have proof of insurance, and a valid drivers licence.  You can use your debit/credit just to secure, but pay the cash up front.

 

There is NO way prepaying with cash will work. They still want a credit card or deposit hold to ensure that you return the car and for possible minor damages.  There is NO way they will allow a car worth thousands out the door for cash without a CC guarantee or running credit.  

 

Also many people assume their private car insurance will cover a rental but it does not.  Unless you are using the rental due to a qualified loss of use of the insured vehicle (i.e. accident) most private policies do not cover rental cars.  

 

Another problem with this option is when the OP turns in the car he will no longer own it and that cancels his current policy so it would not even be effective.

 

I keep a low limit card specifically for car rentals in case I need to do it when travelling.  I have been at far too many rental counters (almost every time) where someone is declined due to presenting a debit card and they either don't allow rentals with them or they run the credit and it is too low to rent with a debit card. It just doesn't happen like it used to.  

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@BlackMetallic - you hope the BK will be discharged in 40 days or so.  Don't count on that because it might take longer.  And, you are going to spend A LOT of money renting a car - do you have someone you can borrow a car from?  As Clydesmom put it, it is very difficult to get a rental with bad credit and/or a credit card without a good limit on it.  My brother-in-law tried to rent a car with a debit card and it did not fly at all - we had to rent it for him.

 

As for your auto policy covering you in a rental car, I would suggest you talk to your insurance company FIRST about it.  All policies are different and it depends what type of coverage you have on your policy.  A rental "might" qualify as a non-owned vehicle on your policy, but, a lot of policies have a time limit on how long you can rent the car and if it will be covered or not. (I used to be a claims adjuster in my prior life - :-)  )

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@BlackMetallic - you hope the BK will be discharged in 40 days or so.  Don't count on that because it might take longer.  And, you are going to spend A LOT of money renting a car - do you have someone you can borrow a car from?  As Clydesmom put it, it is very difficult to get a rental with bad credit and/or a credit card without a good limit on it.  My brother-in-law tried to rent a car with a debit card and it did not fly at all - we had to rent it for him.

 

Very, very true. To cut down on how long I need to have the rental, I have talked to a few dealerships that are willing to extend me a car loan even though I did not get the discharge of my debts yet. But they need a letter from my Trustee, stating that it is ok for me to get a loan, pre-discharge. I am not counting on this, but am exploring it as a possiblity.

 

As for your auto policy covering you in a rental car, I would suggest you talk to your insurance company FIRST about it.  All policies are different and it depends what type of coverage you have on your policy.  A rental "might" qualify as a non-owned vehicle on your policy, but, a lot of policies have a time limit on how long you can rent the car and if it will be covered or not. (I used to be a claims adjuster in my prior life - :-)  )

 

That is an excellent point. I thought I was ok with my insurance, as the customer service rep from my insurance company HQ told me that, upon surrendering my car, I could get my policy changed to the non-owner driver, and that I could have that policy for 4 or 6 months (don't remember exactly) until I get the new car and switch to "regular" policy again.

 

So, today I called my actual insurance agent, and after they talked to their underwriter,  I was told that agency not only doesn't do any non-owner rental policy, but that they do not cover rental cars, period. I was a bit confused that the company HQ would tell me one thing and that their agent would tell me something else. But I suppose, agents probably have some autonomy how they do things.

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I have State Farm. I do have comprehensive as well as collision. My policy covers rental cars regardless of why I rented it. (@clydesmom) regardless, I know insurance is usually on the car and not the person, but there are policies out there on the person..my boyfriend had a DUI a couple years ago. He didn't have a car in his name, but got insurance that was required for proof as a condition to get his license back. There are options.

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I have State Farm. I do have comprehensive as well as collision. My policy covers rental cars regardless of why I rented it. (@clydesmom) regardless, I know insurance is usually on the car and not the person, but there are policies out there on the person..my boyfriend had a DUI a couple years ago. He didn't have a car in his name, but got insurance that was required for proof as a condition to get his license back. There are options.

 

I have State Farm and both comprehensive and collision and in my state it does NOT cover rental cars no matter what.  My policy states clearly that unless my rental is due to a loss of use they don't provide rental car coverage.  It may depend a lot on state law you cannot assume because YOUR coverage is that way that in another state it would be as well.  

 

The OP has already investigated and found out that his current company does provide non-owner coverage but under no circumstance covers rental cars.  So you see the situation is VERY specific and rather than assuming the rental would be covered because someone on the internet told you it was you have to call your agent or your underwriter and get a direct answer before you find out the hard way.  

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