Renting a Car After Bankruptcy - Can You?
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Renting a Car After Bankruptcy

Typically, car renters use a credit card to book and pay for their rented vehicles, which can cause concern for a recent bankruptcy filer. Luckily, this, is not always the case. Some car rental companies may allow you to simply pay for your rental with cash.

Cash-based car rentals may be helpful for people who have recently received a bankruptcy discharge, especially if they do not have a credit card. You may wish to contact a car rental agency to determine their policy on cash rentals.

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How to Rent a Car After Bankruptcy

Life after bankruptcy does have a few complications, particularly if you have very low credit or do not own a credit card. The modern world, though, is often willing to accommodate drivers in your situation.

If you are trying to rent a car after bankruptcy, consider the following:

  • Debit may be an option. Car rental companies that require a card will usually be happy to accept a debit card, though sometimes for an extra fee. Some other may even accept cash as payment.
  • Booking policies. Many rental agencies require a credit card to reserve the rental, but this does not mean they have to charge the card. In addition, you may be able to negotiate with the agency for another method of reservation.
  • Consider public transportation. Many cities have a long-haul train or bus service that could allow you to travel the same distance for a fraction of the cost.

Thus, renting a car after filing bankruptcy may pose some challenges, but with a little imagination and some polite negotiating, you could be able to borrow a car without having to use a credit card as payment.

Rebuilding Your Credit After Filing Bankruptcy

Of course, renting a car after bankruptcy may become easier once you have restored the health of your credit. After bankruptcy, there are several steps one might take to begin improving credit. This may include:

  • Getting a secured credit card. Credit unions and smaller banks may be willing to open a secured credit card, which requires a deposit upfront.
  • Using retail or gas cards. A line of credit at a gas station or favorite store, along with regular payments, can help prove financial responsibility.
  • Getting it properly reported. Any new line of credit, along with proof of timely and regular payments, should show up on each of the three main credit reporting agencies' reports in order to have any real impact.

After you've begun taking steps to rebuild your credit after bankruptcy, you may be able to go about renting a car with relatively few problems. You may also be able to rent a car immediately after bankruptcy, depending on the rental agency's policies and your local bankruptcy laws.

To learn more about rebuilding your credit, or what to expect after filing for bankruptcy protection, contact a lawyer today. Use the free case review form on this page to get started now.

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