How to Rent a Car in Canada Without a Credit Card in Canada

person driving the car in night

Renting a car in Canada makes for a convenient and stress-free experience – if you have a credit card. However, not everyone has access to a credit card or they may prefer not to use one when renting a car. Good news – you can rent a car in Canada without a credit card, although it might prove difficult. In this article, we’ll explore the requirements and options available to help you navigate the process successfully.

Understanding Car Rental Requirements in Canada

Before you start looking for car rental options, let’s review the requirements for renting a car in Canada. Generally, you must be at least 21 years old and possess a valid driver’s license. However, different car rental companies may have other age restrictions and driver’s license requirements. As a result, we recommend you take time to check with the company directly before making your travel plans.

Age Restrictions and Driver’s License Requirements

Most car rental companies in Canada require drivers to be at least 21 years old, but some companies set the bar at 25 or older. Additionally, some car rental companies may restrict the type of driver’s license you hold. For example, some companies may only accept Canadian driver’s licenses, not those of international drivers. For peace of mind, check with the company before booking your rental.

If you have yet to turn 25, you may face an additional charge called a “young driver fee.” This daily fee can range from $10 to $25, depending on the car rental company. Some companies may also require you to have held your driver’s license for a certain amount of time before you qualify to rent a car.

Insurance Coverage Options

When renting a car in Canada, you’ll need insurance coverage to protect against potential accidents and damages. Typically, car rental companies offer insurance coverage as an add-on option. Many people decline this, however, as many credit card companies provide insurance coverage for car rentals as a part of their cardholder benefits. Nonetheless, if you don’t have such a credit card, you may want to consider opting for the rental company’s insurance

More importantly, identify what kind of insurance coverage you have when renting a car. Some car rental companies offer a Collision Damage Waiver, which covers damage to the rental car in the event of an accident. However, this coverage may not include damage to other vehicles or property. Additionally, some car rental companies may offer Supplemental Liability Insurance; this additional coverage extends to damages caused to other people’s property or injuries sustained by other people in an accident.

Additional Fees and Charges

As you book a rental car in Canada, you may face additional fees and charges. These cover a deposit or a daily fee for an additional driver. Above all, read the rental agreement carefully and ask the representative about any additional fees beforehand.

Some car rental companies may request a deposit when you rent a car. Typically, you secure this with your credit card and get refunded when you return the car in its original condition. The amount of the deposit can vary depending on the car rental company and the type of car you rent.

If you plan on having additional drivers, some car rental companies may charge a daily fee for each additional driver. This fee can range from $10 to $25 per day, depending on the car rental company.

Once you understand all of the fees associated with renting a car in Canada, you avoid any surprises when it comes time to pay.

Alternatives to Credit Cards for Car Rentals

While credit cards mark the most common method of payment for car rentals have several other options. These options become pertinent if you don’t have a credit card, either due to a poor credit score or a personal preference.

Debit Cards

Debit cards or Visa debit cards provide a popular alternative to credit cards for car rentals. Many car rental companies in Canada accept debit cards as payment, but not for booking the rental. However, some of them will take a security deposit charged on the card and pay it back later. Of course, it saves you time and hassle to check with the rental company before making a reservation.

If you do choose to use a debit card for your car rental, check your bank balance first. Ideally, you’ll have enough funds in your account to cover the rental and any additional fees that may apply. 

Prepaid Cards

Prepaid cards also allow you to rent a car in Canada without a credit card. However, not all car rental companies may accept prepaid cards as payment, so check beforehand. If you do choose to use a prepaid card, load enough funds onto the card first. That way, you can confidently cover the rental and any additional fees.

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Remember, some prepaid credit cards in Canada may have limitations that could impact your ability to rent a car. For example, some cards may have lower daily spending limits than the cost of a car rental. On the other hand, they may not accept international cards. Asking ahead of time will give you peace of mind.

Cash Deposits

For those who eschew plastic payment, some car rental companies may accept cash deposits in place of a credit card. However, this option may require a larger deposit than if you use a credit card. Further, you may not get your deposit back immediately after returning the car.

Additionally, some companies may only accept cash payments at certain locations. Beforehand, check with the rental company to ensure that your desired location accepts cash payments.

Choosing A Car Rental Company That Will Allow You To Rent a Car Without A Credit Card

Canada has several reputable car rental companies with a range of safe vehicles to get you where you need to go. Between them, they have different policies on paying for your rental. As a result, we put together this helpful guide to save you from surfing around to all their sites.

Once you determine which one suits you best, you can book your trip and enjoy your road trip. With so much to plan for a trip, this will take one more factor off your to-do list.

Canadian Car Rental Companies and their Payment Policy 

After establishing your car rental needs, it’s crucial to explore and compare various car rental companies. Prices can greatly fluctuate between different providers, making thorough research and comparison a key part of the process. Pay attention to elements like the range of available vehicles, the company’s credibility, and any hidden or additional charges that may apply. 

Moreover, if you don’t possess a credit card, it’s important to investigate which companies accommodate such circumstances. Some rental agencies accept debit cards or cash deposits, but these options often come with more restrictions or requirements. Here are the payment policy of a few rental car companies in Canada:


With 482 locations in Canada, Enterprise can be found within reach of most Canadians seeking a set of temporary wheels. You can easily find its payment options on its FAQ page related to forms of payment:

  • It only accepts debit and check cards with VISA, Mastercard or Discover logos. 
  • At airports, debit cards only apply if you have a ticketed return travel itinerary and a driver’s license.  
  • This company welcomes prepaid gift cards with a Visa, Mastercard or American Express logo at the end of a rental. 
  • Some sites accept cash or a money order at the end of the rental for final payment. 


Alamo offers rentals from 25 locations, with 18 of them at airports. The others are at the main Toronto and Halifax train stations, and in Calgary, Banff and Montreal.

To rent from Alamo, you must follow these payment options

  • It only accepts VISA and Mastercard debit cards, but not at airports. 
  • At airports, you can only use a debit card for a deposit, but not advance payment if you have a ticketed return travel itinerary and a driver’s license.
  • It does not accept debit cards for final payment at airports.
  • Alamo accepts Visa, Mastercard or Amex prepaid gift cards at the end of a rental, but not to secure one. 
  • It welcomes cash as a deposit at the beginning of a rental at any location although not at all locations.
  •  Alamo does not accept prepaid credit cards.


National rents out cars from locations in 90 Canadian cities and towns. As you’ll see, its payment methods share a lot of common ground with the other companies: 

  • It accepts VISA and Mastercard debit and check cards. 
  • At airports, you can only use a debit card for a deposit, but not an advance payment. 
  • At the time of rental, you can pay a deposit with a debit card to reduce the final cost. This card can also pay off your bill at the end of your travels, but not at airports.
  • National accepts prepaid Visa, Mastercard or Amex gift cards at the end of a rental, but not to secure one. 
  • It does not welcome cash as a deposit at any location. Some locations don’t accept cash at all, unless for pre-paid tours or corporate accounts through prior arrangements.

Auto Rental Canada

This smaller player has three Quebec-based locations and has offered car rentals for more than 30 years. It has a simple policy of renting with or without a credit card, although some conditions apply. You can find further details about how no credit card is needed.

Learn about Payment Options via Customer Reviews

Certainly, the experiences of previous customers can give you insights into how they have paid for their rentals. Reading customer reviews can help you gauge how companies treated customers who showed up with a prepaid card or cash.

You can find reviews on any company’s website, as well as on independent review websites. Look for reviews that specifically mention customer service or alternative payment options.

Contacting Rental Companies Directly for Information

While researching car rental companies online can be helpful, you’ll find it faster to contact companies directly for more information. This can help you better understand their rental processes and any fees or restrictions that may apply to your rental.

When contacting a car rental company, ask about their payment options, extra fees and policies related to fuel and insurance. This can help you avoid any surprises when it comes time to pick up your rental car.

By researching car rental companies, you can find the one that takes the type of payment you have handy. Next, you can plan your trip with one less worry on your mind.

Arthur Dubois is a personal finance writer at Hardbacon. Since relocating to Canada, he has successfully built his credit score from scratch and begun investing in the stock market. In addition to his work at Hardbacon, Arthur has contributed to Metro newspaper and several other publications