Car Rental Credit Cards

Help with Choosing a Car Rental Credit Card

Car rental credit cards are a great choice for Australians who frequently hire vehicles, and are a popular type of card for businesses that need to provide cars to employees who are regularly away on business trips. Every time you use your card to make a payment you receive and accumulate points, which can then be redeemed for car rentals. If you use your card often and maintain responsible spending and repayments, you can earn plenty of points and really feel the benefit of rental services.

How to Know if a Car Rental Rewards Card Suits You

Q: What’s the point of having a car rental credit card? A: When you use a car rental card you gain access to a rewards scheme that is designed for drivers who, through business or leisure, often need to hire cars. You can earn points and use them for rentals and car rental insurance cover, making travel and vehicle hire cheaper and more rewarding. These loyalty schemes are not limited to car rentals – you can also enjoy a wide variety of travel related rewards along with retail products and other goods and services.

Q: Is a car rental card the right choice for me? A: If you need to regularly hire cars for business, or would like to collect points for rentals during a holiday, this type of reward program could be a great choice for you. This type of card often has a high level of interest, and to feel the benefits you really need to have a good amount of money on the card, use it often and make repayments in full each month. For these reasons it’s particularly important that you take the time to weigh up your spending habits and financial position before selecting this type of card.

Q: What about point capping and expiry? A: As with any rewards scheme, car rental credit cards are subject to rules and restrictions on how points are earned, how many you can collect and how long they remain valid for. These limitations vary between different car rental programs, so it is important to read the terms and conditions before applying.

Q: Can my business earn rewards? A: Yes, if your business needs to hire vehicles you can use card, or cards, to earn and redeem rewards points on rental expenses. Businesses can distribute multiple credit cards linked to the same account to designated staff members, so sharing and accumulating points collectively. If car rental accounts for part of your business expenses, this type of rewards scheme offers a great way of cutting down costs. However, assuming you or your staff travel regularly, then a travel rewards card linked to a frequent flyer program may offer more benefits.

Q: Is car rental insurance cover available? A: Yes, many of these cards offer a level of car rental insurance cover as well as the ability to earn points that can be redeemed for a rental car. They often also feature other covers, such as travel insurance and purchase protection; these vary between individual credit cards.

Q: What other features should I consider when comparing offers? A: You will probably want to use your car rental credit card like any other type of credit card, so it is important to study all the features to ensure that you a picking the most rewarding and cost-saving deal.

Interest rate: If you have an ongoing balance on your credit card account, you get charged interest. To get the most out of a credit card you should always clear the monthly balance, but you should compare interest rates to find out how much you will be charged if you are unable to repay in full.

Annual fees: Many cards feature an annual fee, often relatively high. This pays for the maintenance of your card, the rewards scheme and other extra features – generally, the higher the fee the more benefits you enjoy. You should check, however, that the fee isn’t so large that it wipes out the savings you can make on car rentals or insurance.

Balance transfers: If you have a debt on an existing credit card you could make use of balance transfers to save money. You should note, however, that balance transfers (along with other transactions such as cash advances) usually do not earn rewards points. For this reason, if your priority is clearing your debt then another card with a more competitive balance transfer may be a better choice.

Earn rate: Different rewards schemes have different values for points. Check how many points you earn per dollar spent, and in turn what value these points become when you redeem to see if the program offers genuine value for money.

Sign up bonus points: Many banks offer new customers bonus points when they are approved for a new card to get them started. You also earn extra points when you spend with you credit card at program partners. Check that the affiliated companies are ones you want to spend with and that you can earn plenty of points in the way you normally use your credit card.

Other fees, charges and limits: Before applying for a card, always study the small print for rules and restrictions, fees and charges, which might infringe on the card’s benefits. Knowing exactly how it functions helps you get the best out of it.