Renting a car with a debit card INFO

[CarolA]

I just received the March edition of National Geograhic Traveler. If you use a debit card to rent cars you might find this interesting.

A few quotes "Can renting a car put a dent in your credit report, even if you don't damage the vehicle? Sounds preposterous, but some consumers run that risk when they use a debit card..."

The article goes on to state that Dollar and Thrifty run background credit checks on people renting with Debit cards. The article states these inquires stay on the credit report for up to two years and can lower your credit score. According to the article " Dollar and Thrifty perform credit score inquires through Equifax, using a risk assessment product designed for the car financing industry. This inquiry on your credit report looksas if your applying for a car loan....."

I tried to find the article on line, but it is not there. If you see the magazine and just want to read this, it is on page 23.

 

[GAIL HAYDEN]

Originally posted by CarolA
I just received the March edition of National Geograhic Traveler. If you use a debit card to rent cars you might find this interesting.

A few quotes "Can renting a car put a dent in your credit report, even if you don't damage the vehicle? Sounds preposterous, but some consumers run that risk when they use a debit card..."

The article goes on to state that Dollar and Thrifty run background credit checks on people renting with Debit cards. The article states these inquires stay on the credit report for up to two years and can lower your credit score. According to the article " Dollar and Thrifty perform credit score inquires through Equifax, using a risk assessment product designed for the car financing industry. This inquiry on your credit report looksas if your applying for a car loan....."

I tried to find the article on line, but it is not there. If you see the magazine and just want to read this, it is on page 23.

You are absolutely correct about this and the credit check for using debit card is mentioned on Dollar's site. Of course, they don't inform you that it will stay on your credit report for a few years and it can mess you up if you rent often and then try to get a loan or mtg. Sometimes a mortgage company/bank will accept the explaination about rentals, but, not always.

 

[CarolA]

The article does indicate that there is some info on the website, but it also says that the agents are not trained to tell you about it and that it is not on the signed rental agreement.

I think the bigger risk is if you rent lots of times using a debit. That could be hard to explain.

Anyway, I was surprised since I don't use debit cards for rentals. This would pretty much keep from doing it.

 

[brando5111]

If they do not tell you about it and it's not in their rental agreement this is called a non-permissible pull of your credit report and you can sue them for $1000.00 for this (and $2,500 in the state of California).

This is illegal and any hard inquiries on your credit file will lower your credit score.

Brando

 

[GAIL HAYDEN]

Originally posted by brando5111
If they do not tell you about it and it's not in their rental agreement this is called a non-permissible pull of your credit report and you can sue them for $1000.00 for this (and $2,500 in the state of California).

This is illegal and any hard inquiries on your credit file will lower your credit score.

Brando

they do tell you they will pull your credit report, but, do not tell you of the possible ramifications. But then, few who pull credit reports tell you of that possibility. I am not sure if it is in the rental agreement.