Rental Car May Hurt Your Credit
If you have recently rented a car you may received quite a shock when you checked your credit report. Your normally good credit could receive some alarming negative items. After some research, you may be surprised to discover that a recent car rental was the cause of your lower credit score.
The reasons to rent a car can be different – perhaps for a vacation or to replace your repairing car – but your credit might be at risk when you rent. Be aware of how your credit could be affected, before you rent a car.
Know the upfront costs
Ask for an estimate of the costs you’ll be expected to pay prior to signing for the car. Rental fees add up like a snowball especially if you take the rental company’s insurance. The estimate will help you avoid any surprises. For instance, if you didn’t fill up the tank, the charge could be sent to a debt collector and that small amount could hurt your credit.
Your regular auto policy can cover the rental car. If your insurance company is paying for the rental, be aware of what the insurance company will and will not cover. Some companies only cover a certain amount of rental per day and others may not cover the “extra” insurance.
Ensure that you are insured
Insurance is one of the biggest costs associated with car rental. Before you rent, find out if you already have coverage, perhaps through your credit card or through your own car insurance. Know what is covered and what is not. Insurance from car rental may cost you a pretty penny. And if you damage a vehicle without having insurance, a rental car company could send the repair charges to a collection agency, which affects your credit as well.
Review the expenses
It is not rare that some renters drop off their car while the car rental office is closed. But this can lead to an unpleasant surprise later if the rental agency discovers damage, even if you didn’t do it. They have your credit card and all you have is your firm insistence that you didn’t cause the damage. This could hurt your credit by increasing your credit utilization ratio.
Rental car companies are lending you a vehicle worth thousands of dollars and they’re often lending it based on the fact that you have a credit card and a driver’s license. There’s no surprise that they are going to pass on any charges incurred to you. This might result in a higher than you expected credit card charge or even a debt collector’s notice.
If you are renting a car, make sure you’re aware of all possible charges and the condition of the car before and after you rent. Arm yourself with information so you know exactly what rights you have as a consumer. Doing this, you can smooth your rental and can lessen an impact to your credit report.
Latest Other Card News
A student loan refinancing typically involves taking out a new loan to pay off your existing debt. Refinancing student loans can potentially lower your interest rate, fees, or/and allow you to get better repayment terms, helping you save money. However, it is important to consider whether your loan is private or federal and what benefits […]
2020 has definitely been a very unusual and challenging year. Many of us have been waiting for its end more than ever. And now, when there is less than a week left until the beginning of the new year, it’s time to sum up the outgoing one and find out the results of the annual […]
Walmart is finally ready to introduce a new subscription service offering free same-day delivery and fuel discount. Walmart+ was supposed to go live back in July, however, it was delayed due to the COVID-19 outbreak. Now the launch is planned to take place on September 15. The new product will help you order any goods […]
This month, American Express introduced its new tool called MyCredit Guide. The Amex website says: “We believe everyone should know their credit score and have the tools to understand it better.” That’s why the new feature was developed. Using the tool, you can find out your credit score and take a look at your credit report, […]
A virtual credit card is a unique credit card number that is linked to your main credit card account but is different from the physical card number. The virtual credit card number allows to shop online or over the phone without using your physical credit card. The numbers can usually be used once and expire if not used. The cardholders can also delete the numbers if they want or need to.