Pay for Your Car Rental With Credit, Not Debit, to Save Your Account
The next time you rent a car, think twice about how you will pay. In some cases, the rental company may actually get your credit report. And this can lead to a drop in your score. To prevent this from happening, pay by credit, not debit.
GOBankingRates explains that when you rent a car with a debit card, many rental agencies actually do a credit check to authorize your rental. As CreditCards.com points out , the rental company may view the debit payment as a red flag. Simply put, they are skeptical that you don’t have a credit card because you have bad credit.
In any case, this is called a “hard request,” and the FICO confirms that this can actually reduce your score . While a single request usually lowers it by about five points, that number can be higher if you don’t have many open lines of credit or if your credit history is somewhat new. If you have multiple requests at the same time, this can also have a greater impact on your account.
The good news is that this is really easy to avoid – just swap debit for credit. To find out more, check out their full post at the link below.
5 Amazing Things You Can Find On Your Credit Report | GOBankingRates