Yes, you can rent a car with a secured credit card, but the rental company will run a credit check and may place a hold on your card that's larger than the rental cost
A secured credit card works the same as a regular card at the rental counter — the company doesn't distinguish between them during the booking or payment process. What matters to the rental agency is that you have a valid card in your name, a driver's license, and proof of insurance. Your card's secured status doesn't appear on the card itself or in their system.
The catch is that rental companies treat secured cards the same way they treat all cards: they run a hard inquiry on your credit report and place a hold on your account. That hold is typically $200 to $500 above the rental cost, depending on the company and the car class. With a secured card backed by a $500 deposit, a $300 hold could tie up most of your available credit, leaving you unable to use the card elsewhere during the rental period.
The hold usually drops within three to five business days after you return the car, but some companies take longer. If you're using a secured card specifically because you're rebuilding credit, this temporary freeze on your funds can create real problems if you need access to that money.
Key Takeaways
- Rental companies accept secured cards without treating them differently from regular cards, as long as the card is in your name and active.
- A credit hold placed on your card during the rental can tie up a significant portion of your secured card's credit limit, potentially leaving you with little to no available credit.
- The hold is temporary and typically releases within three to five business days after return, but some companies hold funds for up to two weeks.
- Major rental chains (Enterprise, Hertz, Avis, Budget) all require a credit card for payment and security, regardless of whether it's secured or unsecured.
- Debit cards are generally not accepted for car rentals, even if you have sufficient funds in the account.
How the credit hold works when you rent a car
When you hand over your secured card at the rental counter, the agent swipes it and the system places an authorization hold. This is not a charge — it's a temporary block on funds to may provide the rental company can cover potential damages, fuel, or tolls. The hold amount varies: budget companies might hold $200 to $300, while luxury car rentals can hold $500 to $1,000.
The hold appears immediately in your account and reduces your available credit. If your secured card has a $500 limit backed by a $500 deposit, and the company places a $400 hold, you now have only $100 available to use. You won't see the hold as a separate charge on your statement — it shows as "pending" or "authorization" until it clears.
The timing of the release depends on the rental company's processing. Some release holds within 24 hours of return; others take up to 14 business days. Hertz and Enterprise typically release within 3 to 5 days. Budget and Avis vary by location. The hold releases automatically once the rental period ends and the company confirms no damage occurred and all charges are final.
Which rental companies accept secured cards
All major rental chains accept secured cards because they don't see the card type — they only see that it's a valid Visa, Mastercard, or American Express in your name. Enterprise, Hertz, Avis, Budget, National, and Alamo all process secured cards the same way as any other credit card.
Some smaller or regional rental companies may have stricter policies. A few require the cardholder to be present at pickup and may ask additional questions if they see a low credit limit or recent account opening. Calling ahead to confirm your specific rental location accepts your card is worth the five minutes, especially if you're renting in a smaller market.
What you cannot do is rent with a debit card, prepaid card, or gift card at any major rental company, even if you have the full rental amount available. Rental companies require a credit card specifically because it gives them a way to place a hold and pursue charges if damage occurs after you've left.
Strategies to minimize the impact of a credit hold on your secured card
If your secured card has a low limit and you need to rent a car, you have a few options. The first is to call the rental company before you book and ask what their hold amount is. Some companies will negotiate or reduce the hold if you explain your situation, though this is not may provide. A few will accept a larger deposit upfront in exchange for a smaller hold.
A second option is to increase your secured card's credit limit before the rental. Some issuers allow you to add more money to your deposit to raise your limit. If you can move your deposit from $500 to $1,000, your available credit after a $400 hold is much healthier. Contact your card issuer to see if this is possible — it usually takes one to two business days.
A third option is to use a different card if you have one. If you have a regular unsecured card, even with a modest limit, using it for the rental preserves your secured card's available credit. The hold still happens, but it's on a card you're not relying on for everyday purchases.
A fourth option is to rent from a company known for lower holds. Some regional or independent rental agencies place smaller holds or accept alternative payment methods. These are less common and may charge higher daily rates, but they exist in some markets.
What happens if you don't have enough available credit for the hold
If your secured card's available credit is less than the rental company's hold amount, the transaction will be declined at the counter. For example, if your card has a $500 limit and $200 available credit, and the company tries to place a $400 hold, the system will reject it.
When this happens, you have limited options on the spot. You can ask the rental agent to try a lower hold amount, though they may not be able to adjust it — the system often sets it automatically. You can offer to provide a second card if you have one. You can cancel the reservation and book elsewhere, though you may lose any prepayment or face a cancellation fee.
The best approach is to check your available credit before you arrive at the rental counter. Log into your secured card account online and confirm the balance. If it's too low, contact the issuer and ask if you can increase your deposit or credit limit before the rental date. This takes a few days but prevents a declined card at the counter.
Impact on your credit score and credit-building progress
A credit hold does not directly hurt your credit score. The hold is an authorization, not a hard inquiry or a new account. Your credit report won't show the hold, and it won't change your payment history or credit utilization in the way a permanent charge would.
However, the hold does reduce your available credit temporarily, which can affect your credit utilization ratio if you're carrying balances on other cards. Credit utilization — the percentage of your total available credit that you're using — makes up about 30% of your credit score. If the hold ties up most of your secured card's limit and you're already using credit on other accounts, your overall utilization goes up slightly, which can lower your score by a few points. This effect is temporary and reverses once the hold clears.
The bigger impact on credit-building is behavioral. If a hold leaves you with no available credit and you're tempted to miss a payment or carry a balance elsewhere, that will hurt your score. Using a secured card to build credit works best when you can manage the temporary holds without financial stress.
Alternatives if a secured card won't work for your rental
If your secured card's limit is too low or you're concerned about the hold, you have other options. Some people add an authorized user to a family member's regular credit card and use that card for the rental. The hold goes on their account, not yours, and you avoid tying up your own credit.
Another option is to delay the rental until your secured card's credit limit has grown. Many issuers review accounts after six months of on-time payments and automatically increase the limit. Once your limit is higher, a hold has less impact on your available credit.
You can also explore peer-to-peer car rental services like Turo, which operates differently from traditional rental companies. Turo allows you to rent cars from individual owners and may have different payment and hold policies. However, these services still typically require a credit card and may place holds as well.
Frequently Asked Questions
Will the rental company know my card is secured?
No. A secured card looks and functions like any other Visa or Mastercard at the point of sale. The rental company's system doesn't flag it as secured. They only see the card type, your name, and your available credit. Your secured status is between you and your card issuer.
Can I ask the rental company to place a smaller hold?
You can ask, but most rental companies use automated hold amounts based on the car class and location. Some agents have limited ability to adjust holds manually, and a few companies will negotiate if you explain your situation. Calling ahead to ask is worth trying, but don't count on it working. Having a second card as backup is safer.
What if the hold doesn't release after the rental ends?
Contact the rental company's customer service and provide your reservation number and card details. They can manually release the hold if it's been longer than their stated timeframe. If they don't respond within a few days, contact your card issuer — they can sometimes force the release on their end if the rental company is unresponsive.
Does renting a car with a secured card hurt my credit score?
The hold itself doesn't hurt your score, but it does reduce your available credit temporarily. If the hold ties up most of your limit and you're using credit elsewhere, your overall credit utilization may go up slightly, which can lower your score by a few points. The effect is temporary and reverses once the hold clears.
Can I use a prepaid card or debit card instead?
No. All major rental companies require a credit card — secured or unsecured — and will not accept prepaid cards, debit cards, or gift cards. They need the ability to place a hold and pursue charges if damage occurs after you leave. A secured credit card is your best option if you don't have a regular credit card.