Secured Credit cards

[dl5175]

Has anybody ever used secured credit cards (not prepaid debit cards), the ones that you put money in a savings account and that is your limit? Has anyone ever used these cards to rent a car? I know the interest rates are high but I might need one soon.
Any thoughts

[stevew]

You maybe can rent a car with a debit card (I have from enterprise) . You just need to pay roughly $400 up front (call your local place, ymmv). You overall pay the same rate, just needs a few extra days to credit back to you.

[Ron Mexico]

Most secured cards come with a monthly fee (ours at PNC is $3/mo). Interest-wise it's not that bad, at least for a credit card, mostly in the low teens.

There's no way for the rental company to know it's a secured card as it will be embossed in your name, etc etc.

One thing to keep in mind is the lead-in time for secured cards vs. unsecured is a little longer, seeing as they have to establish the security deposit then process the plastic. I'd allow somewhere in the neighborhood of 3 weeks from opening to be safe.

I don't know who you currently bank with, but if you're willing to share via PM or reply or whatever, I can look up some options for you.

[Ron Mexico]

Originally Posted by stevew

You maybe can rent a car with a debit card (I have from enterprise) . You just need to pay toughly $400 up front (call your local place, ymmv)

Only thing with using your debit card is like you said-- they'll authorize the card for incidentals up front and can end up placing a significant hold on your checking account where the hold can still take days to drop off even after you return the car.

Biggest reason I'll always use a regular credit card for hotels, car rentals, etc. I'm only charged based on statemented transactions. With my debit card, it can impact my ability to draw on funds that are otherwise free and clear.

[dl5175]

No bank account and I was trying to avoid a lot of cash being held.

[DougW]

Originally Posted by Ron Mexico

I don't know who you currently bank with, but if you're willing to share via PM or reply or whatever, I can look up some options for you.

Yes, just share (in a PM of course) your bank info with Ron Mexico, and he'll look some stuff for you. He'll also need your date of birth, phone number, and social security number to get more accurate info !

But, seriously, I'd assume you'd have no problem with a secured card - as long as you secure enough to cover whatever they'd need. This would also include anything they would need to "hold" - you know the schpeel - We're going to need XXX on your card, but we'll only use XX, you'll get the X back as long as you don't steal the car or w/e.

[Ron Mexico]

For the record, and Michael Vick name aside, I should clarify. I'm a Branch Manager for PNC in Central NJ.

By looking at options, each financial institution does things slightly differently (timeframes, etc.) I've worked for BoA as well as a couple community banks in the past and have contacts around the area at several larger banks. Some banks offer more favorable terms to those that already have relationships with the bank.

Regardless, your safest rule of thumb: you're going to need cash to back up not only the rental, but the incidentals as well. $1 deposit = $1 of a credit line. I've seen plenty of cases where they've switched the same card from secured to unsecured once you build a history (usually 6-12 months later). While I know you're looking primarily at the car as motivation, it has a definite added plus of building/strengthening your credit profile as although the card is 100% secured, they will still report to the credit bureaus each month. The credit environment is a hell of a lot different than it used to be.

But you know, I'm really just after your personal information. That's how I roll.

I'll shoot you a PM with my work e-mail address if I can answer any other questions and you know, to set Doug at ease.

[stevew]

Some car rental places deal in cash as well (weak cars of course)