Most car rental companies require a deposit, but some let you skip it or use a credit card hold instead
A traditional car rental deposit is money you hand over before you drive away—usually held as a security against damage, fuel shortfall, or late return. Some rental companies will let you avoid paying a deposit upfront by using a credit card authorization hold instead. This means the rental company places a temporary hold on your card for the deposit amount, but no money actually leaves your account unless you damage the car or incur charges. Other companies have removed deposits entirely for certain customers or rental types, though this varies by location and how you book.
The catch is that a credit card hold still ties up your available credit, which can affect your ability to use that card elsewhere during the rental period. And not all companies offer this option—some still require cash or a debit card deposit, which does take money from your account when ready. Your best option depends on what payment method you have, which rental company you choose, and whether you're renting locally or at an airport.
Key Takeaways
- A credit card authorization hold lets you rent without paying a deposit upfront, though the hold reduces your available credit until the rental ends.
- Airport rental locations are more likely to require a deposit than off-airport branches, and some companies waive deposits for members of their loyalty program.
- Debit card deposits are usually non-refundable or take longer to return than credit card holds, so a credit card is your better option if you have one.
- Some rental companies charge extra fees for drivers under 25, which can be steeper than a deposit and are not refundable.
- Damage charges, fuel fees, and late-return penalties are separate from the deposit and can be applied even if you paid no deposit upfront.
How a credit card hold works instead of a cash deposit
When you book a rental with a credit card, the rental company can place an authorization hold on your card for the deposit amount—typically $200 to $500, depending on the car class and location. This hold is not a charge; no money moves from your account. Instead, the card issuer sets that amount aside as unavailable to you, and the hold drops off your account within a few days after you return the car and the rental is finalized.
The problem is that during the rental period, you cannot use that held amount. If your credit limit is $2,000 and the rental company places a $300 hold, you effectively have $1,700 available to spend. This matters if you plan to use that card for other purchases or if you have a low credit limit. Debit card holds work the same way in theory, but the money actually leaves your account when ready and can take 5 to 10 business days to return after the rental ends—a real cash flow problem if you are living paycheck to paycheck.
Which rental companies and locations are most likely to waive deposits
Major chains like Enterprise, Hertz, Budget, and Avis all use credit card holds rather than requiring upfront cash deposits at most locations. However, airport rental counters are stricter than off-airport branches. An airport location may require a cash deposit or a debit card deposit because they process higher volumes and have less flexibility. The same company's branch five miles away might only place a credit card hold.
Loyalty program members often get better terms. Enterprise Plus members, for example, may skip the deposit requirement entirely at participating locations. Avis Preferred and Budget Fastbreak members can also negotiate lower or waived deposits. If you rent from the same company regularly, joining their free loyalty program is worth doing before you book, because the deposit rules can change based on membership status.
Local and regional rental companies sometimes advertise "no deposit" rentals, but read the fine print. They may still place a credit card hold, or they may charge a higher daily rate to offset the risk they are taking. Peer-to-peer car sharing platforms like Turo operate differently—the owner sets the damage policy, and you may pay a damage waiver fee instead of a traditional deposit, though this varies by listing.
What happens if you damage the car or return it late
The deposit is security against damage and other charges, but it is separate from those charges themselves. If you return the car with a dent, the rental company will assess the damage, get a repair quote, and charge you for it—whether or not you paid a deposit. If you paid a deposit, they deduct the damage charge from it and refund the rest. If you paid no deposit (only a credit card hold), they charge your card for the damage on top of the hold.
Late-return fees, fuel charges, and toll violations work the same way. These are billed separately and are not covered by the deposit. A rental company can charge you for a half-tank of fuel at their inflated per-gallon rate, or for tolls you incurred, or for returning the car late—all in addition to any damage charges. The deposit does not protect you from these; it only secures the rental company against the risk that you will not pay.
Drivers under 25 and other surcharges that replace or add to deposits
Rental companies charge extra for drivers under 25—typically $15 to $30 per day, and sometimes more. This is a daily surcharge, not a deposit, and it is not refundable. Some companies also require a higher deposit for young drivers, so you could end up paying both the surcharge and a larger hold. If you are under 25, ask about the total cost before you book, because the daily fee can add hundreds of dollars to a week-long rental.
Some companies charge extra for additional drivers, for declining their insurance offer, or for renting certain vehicle types. None of these are deposits—they are fees that stay with the rental company. A deposit is refundable (minus legitimate charges); these fees are not. When you compare rental quotes, add up the daily rate, the young-driver surcharge if it applies, the credit card hold amount, and any insurance or waiver fees to see the real cost.
How to book a rental that minimizes or avoids the deposit
Book directly with the rental company's website rather than through a third-party booking site. Third-party sites like Kayak, Expedia, or Autoslash sometimes add their own requirements or cannot may provide the deposit terms that the rental company offers. When you book on the company's own site, you can see exactly what the deposit or hold will be before you confirm.
Call the location directly if you are renting at a specific branch. The person at the counter has more flexibility than the online system, and they can tell you whether a deposit waiver is possible for your situation. If you are a loyalty member, mention it when you call. If you are renting for a business purpose or for an extended period, ask whether they offer corporate rates or long-term rental discounts that might include a waived deposit.
Choose an off-airport location if you have the option. Airport rental counters are busier and less flexible. A branch in a residential area or a downtown location is more likely to work with you on deposit terms. If you are renting in a city where you have a local rental company option, get a quote from them too—they may have lower deposits or more flexible policies than the national chains.
What to do if a rental company demands a cash deposit you cannot afford
If a rental company insists on a cash deposit and you do not have that amount available, ask whether they will accept a credit card hold instead. Explain that you have a valid credit card but no cash on hand. Many companies will make this switch, especially if you are not at an airport location.
If they refuse and you have a debit card, understand that the money will leave your account when ready and may take days to return. Ask for a written confirmation of the deposit amount and the expected return date so you can follow up if the refund does not appear. If the company cannot or will not process the refund within the timeframe they stated, contact your bank and file a dispute.
If you cannot meet the deposit requirement at all, you may not be able to rent from that company at that location. In that case, try a different rental company, a different location, or a peer-to-peer platform. Some peer-to-peer owners are more flexible about deposits, though you will need to read each listing carefully and contact the owner directly.
Frequently Asked Questions
Does a credit card hold count as a charge on my credit report?
No. A hold is temporary and does not appear on your credit report. It only reduces your available credit while it is active. Once the rental ends and the hold drops off (usually within a few days), your available credit returns to normal and there is no record of the hold on your credit history.
Can I use a prepaid card or gift card for the deposit?
Most rental companies will not accept a prepaid card for a deposit because they cannot place a hold on it the way they can with a credit or debit card. Some will accept a prepaid card if it is a Visa or Mastercard branded card and has enough balance, but you should call ahead and confirm. A traditional credit or debit card is always safer.
What if I return the car early—do I get the deposit back faster?
If you paid a credit card hold, it drops off your account within a few days of return, regardless of whether you returned early or on time. If you paid a cash deposit, the refund timeline is the same—the rental company is not required to return it faster just because you returned the car early. Ask for a written receipt showing the deposit amount and the expected refund date.
Are there rental companies that truly charge no deposit at all?
Most major rental companies place a credit card hold, which is not technically a deposit but serves the same purpose. Some peer-to-peer platforms and small local companies may not use holds, but they typically charge a damage waiver fee instead or have other protections built into their pricing. Read the terms carefully—"no deposit" often means "no upfront cash deposit," not "no security hold."
If I have bad credit, can I still rent without a deposit?
Credit score does not usually affect deposit requirements for car rentals. Rental companies care about whether you have a valid credit card or debit card, not your credit history. However, some companies may refuse to rent to you at all if you have a history of unpaid rental charges or fraud. If you are declined, ask why and whether a different location or company will work with you.