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
Priority Pass is a world-known program offering its members access to over 1200 airport VIP lounges with free food, drinks and entertainment in more than 500 cities across 143 countries. The program is available to everyone who’s paid for membership, regardless of a tickets class.
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.
Credit scores and credit reports have become an integrate part of our lives and financial health. There are a lot of services that allow to check credit reports online and FreeCreditReport.com is one of them. FreeCreditReport.com is owned and operated by Experian, one of the three major credit bureaus in the U.S. The service provides […]
If your wallet is bulging with store loyalty cards, there’s good news for you from Samsung Pay. The most widely accepted mobile digital wallet system in the United States is now allowing users to upload their store membership and rewards cards onto their Samsung Galaxy smartphones.
Identity theft and banking fraud concern more and more Americans, according to a recent FICO survey. And that is not a surprise as credit card fraud continues to grow, especially online fraud.
There is no foolproof way to protect yourself from fraud, but there are a few things you can do. The first and foremost thing you should do is never ever give your credit or debit card information to someone you do not know.