got any bright ideas? Im about to panic

[itsdisneytime]

Hi folks.

Okay, since no one here realllly knows eachother, I will and can only assume that I will get proper help from some wise, experienced saver .. and that you all will not judge me once you hear this dilema I am in.

My problem: for the past 2 years Ive been living "cash only" ... due to horrible decisions I made in college and in my younger years I had destroyed my credit and well, it has taken me 2 years to get all this stuff under control and I simply do not and will not use credit EVER AGAIN.

I have ONE little $300 limit credit cards on hand that I had to have for credit rebuilding (so my financial planner said) .. but that is it. So here is my catch...

I am driving to Florida from VA on Oct 7th ... I had found A REALLY great deal on Dollar Rental for a mid size SUV for $249 for 10 days ... cha chiiiing! I thought I was sailing on easy street until I called to find out about adding another driver and they I found out that DOLLAR was going to put a hold on my credit card for $350 ... that is just NOT GOING to work for me as the limit on this stupid credit rebuilding card is $300 ... I am really really freaking out now because the penny pincher in me is not willing to loose this deal, .... I think Budget rent a car only puts a $250 hold on the cc which I could do, but for the SAME DARN mid size suv .. they want $700 or close to it ... I almost choked.

What do you suggest? Is there anyone who has gone through the same situation? FYI ... they WILL NOT take a pre paid credit card, nor will they take my debit card as an option. SUCKS.

 

[HelenParr]

Tough spot.

I never lock in with a credit card.

I make a reservation (I always use Alamo, it's just the one I like best) and pay when I pick up the car.

 

[OrangeCountyCommuter]

If your credit will allow...

Call the bank. Ask for a limit raise.

Take the trip.

Call the bank. Ask them to lower the limit.

On a one way rental there may be no way around the credit card issue.

 

[Mama Who]

Just wanted to say kudos for making responsible money decisions. Fixing your past mistakes is a good thing. Go you!

 

[jdb in AZ]

Hi folks.

Okay, since no one here realllly knows eachother, I will and can only assume that I will get proper help from some wise, experienced saver .. and that you all will not judge me once you hear this dilema I am in.

My problem: for the past 2 years Ive been living "cash only" ... due to horrible decisions I made in college and in my younger years I had destroyed my credit and well, it has taken me 2 years to get all this stuff under control and I simply do not and will not use credit EVER AGAIN.

I have ONE little $300 limit credit cards on hand that I had to have for credit rebuilding (so my financial planner said) .. but that is it. So here is my catch...

I am driving to Florida from VA on Oct 7th ... I had found A REALLY great deal on Dollar Rental for a mid size SUV for $249 for 10 days ... cha chiiiing! I thought I was sailing on easy street until I called to find out about adding another driver and they I found out that DOLLAR was going to put a hold on my credit card for $350 ... that is just NOT GOING to work for me as the limit on this stupid credit rebuilding card is $300 ... I am really really freaking out now because the penny pincher in me is not willing to loose this deal, .... I think Budget rent a car only puts a $250 hold on the cc which I could do, but for the SAME DARN mid size suv .. they want $700 or close to it ... I almost choked.

What do you suggest? Is there anyone who has gone through the same situation? FYI ... they WILL NOT take a pre paid credit card, nor will they take my debit card as an option. SUCKS.

Rather than "judge" you, I wanted to congratulate you on getting your finances back on track. We have a spend-thrift relative who is currently too poor to pay attention. His doting grandmother contributed substantial $$$$ help but he hasn't learned any financial responsibility so now that his car has been repossessed he'll have to learn through the school of hard knocks. Grandma has since passed on and didn't mention any grand kids in the will.

As a PP suggested, perhaps your bank will be willing to temporarily raise your limit for you.

 

[pad406]

I don't know if this works there but here (ireland and all of Europe) I can simply lodge money to my card. So say I have a €300 limit I can lodge €100 and therefore now have a €400 effective limit. Worth asking them

Fair dues for sorting out your history and sticking to it. Good luck.

 

[OrangeCountyCommuter]

I don't know if this works there but here (ireland and all of Europe) I can simply lodge money to my card. So say I have a €300 limit I can lodge €100 and therefore now have a €400 effective limit. Worth asking them

Fair dues for sorting out your history and sticking to it. Good luck.

I think in the US we call that 'prepaying'

Hmm... you might call the bank and ask them. "If I pay $100 on the card with a zero balance and 'request' comes through for $350 will you authorize it"? I honestly don't know how the system would process that....But it might be a thought

 

[CarrieR]

Yes, call the bank and see if they will raise the credit limit. If you've had it for a while, they should be willing.

Option two would be to get a second card and cancel it immediately post-trip, if you feel you would have the self-control to do that.

I applaud you for your cash-only restraint! Awesome job. Sorry that the rental companies make life difficult for those who choose to live responsibly!

 

[ccudmore]

Can you put a credit balance on your card (make a payment for more than the current balance) thus giving you more room on the card?

 

[minnierocks]

Can you put a credit balance on your card (make a payment for more than the current balance) thus giving you more room on the card?

This is what I would suggest if you do not want to increase your limit. It you have a zero balance and make a payment on the card for $100. Your balance would be -$100 giving you $400 of available credit. The only drawback to this is that you will be tying up $100 of your cash on the card and when they remove the deposit, you will have a negative balance on your card. Then you have two options, request a refund from the issuer of your credit card (which can take awhile) or make a purchase of at least $100 for something that you would buy anyway (groceries or gas).

It would be much simpler to request an increase and then decrease it after your trip, but I do understand that if you have had issues with overusage on cards before then you don't want to do that again. And definitely no judgment here...it is a mature and honorable thing to make hard financial choices and get back on track. So many just bail out rather than hold up their end of the credit card agreement and repay their debt. I commend you...it's not easy to do and you should be very proud of yourself for doing so.

 

[kamik86]

I would definitely call and request a limit increase. I have done that on one of my cards before. Sometimes if you have good past history they are willing to raise it some without even checking your credit.

 

[sam_gordon]

What about getting a new 'pre-paid' credit card? We can go to our bank, give them '$x' and get a credit with that balance (minus I think $3 for every $100 you put on the card). The card functions a credit card. So you put $350 (plus whatever fee) on the card, use that as your rental car deposit. After your trip, when they release the remainder of the deposit, you use that money for whatever.

 

[CajunMomof3]

You could try to call Budget and ask them to price match Dollar since their hold policy works better for you. I would talk to a supervisor and tell them that you prefer their hold policy and want to give them your business IF they can match Dollar's rate.
Good luck!

 

[Brian Noble]

You've demonstrated to yourself that you can live a cash-only lifestyle. Once you know that, having a credit card with more of a limit is no big deal---just never charge anything to it that you won't be able to pay off at the end of the month. One way to do that is to treat your credit card purchases as if they were checks---write them into your register, and deduct them from your running balance. Back when I was a graduate student, I did exactly this---I used Quicken, which made it a little easier to track.

In other words, it's not the card that is the problem, it's using it without discipline. You've proven to yourself that you *have* that discipline, so the card will not be a threat to you.

So, call to see if you can get your credit limit increased. You'll be great with it.

 

[PerrytheFishHead]

Hi folks.

What do you suggest? Is there anyone who has gone through the same situation? FYI ... they WILL NOT take a pre paid credit card, nor will they take my debit card as an option. SUCKS.

What about getting a new 'pre-paid' credit card? We can go to our bank, give them '$x' and get a credit with that balance (minus I think $3 for every $100 you put on the card). The card functions a credit card. So you put $350 (plus whatever fee) on the card, use that as your rental car deposit. After your trip, when they release the remainder of the deposit, you use that money for whatever.

No. OP already stated that this is not an option.

 

[kaytieeldr]

What rate can you get with Alamo? They don't put a hold on your credit card.

 

[sam_gordon]

No. OP already stated that this is not an option.

Missed it. My apologies.

 

[jerlove]

I work for a rental car company and based on my experience you will need to put a hold on a credit card for all companies. Alamo included. With Alamo they do not need it up front but when you pick up the car they will place the hold at that time regardless if you give them cash up front. The credit card is used as security to charge back any other charges that appear such as parking tickets, unpaid toll charges ect.

The credit card is also sort of a saftey net for rental companies. It tells them that you are credit worthy and makes the company a little more comfortable giving you a $30,000 car and knowing that you will return it. Althought not fool proof, knowing that a bank gave you credit and did a credit check on you in making this decision makes them a little more comfortable entrusting you with their car. So because of this most companies have stricter requirements if paying with a pre paid credit card or debit car as the normal credit check process was not completed by the bank. Most companies will accept them as payment but not as the security hold.

I am sure there are exceptions to every "rule" but this is the general guideline. Congrats on your changes but I would encourage a small credit limit increase if possible to help you overcome this challenge.

Have a great time

 

[OrangeCountyCommuter]

What rate can you get with Alamo? They don't put a hold on your credit card.

I think they will on a one way rental like this.

Unfortunately, in the eyes of a car rental agency a one way rental is RISKY. Their historical data must show that it tends to result in "issues" (like the car never turning up?) That's why some of them only take a Debit card if you have "proof" of a return ticket home.

 

[Greysword]

Some don't like them, but I enjoy having an American Express card. Since it is a charge card, I don't put anything on it that won't be paid at the end of the month, and it also helps keep the hard earned fiscal discipline. Maybe the new Zync card would be right for you (low annual fee of $25 and no limit...within limits ).