Can you rent a car in Iceland without a credit card?

As in most other countries, you will need a credit card in the name of the main driver to rent a car in Iceland. Depending on the rental company you book with, the rental price can also be paid via iDeal or an invoice. When picking up the rental car, you pay the deposit with your credit card.

It is possible to rent a car in Iceland with or without a very low deposit. We will explain how this works later in this article. First, we would like to explain a bit more about the possibilities of renting a car in Iceland without a credit card.

Rent a car in Iceland with a debit card

If it’s not possible to rent a car with a debit card, a pre-paid credit card can be a solution if you don't have a credit card. If you rent a car in Iceland with pre-paid credit card, there are a number of advantages compared to a normal credit card:

• You do not need a fixed income;
• You deposit an amount to the card and cannot spend more than that amount. So you do not build up any debts;
• A prepaid credit card does not require a review of your credit score or approval from the creditor. However, this is necessary for a normal credit card, as it is seen as a loan.

For a rental company, there are some drawbacks to the pre-paid card:

• They do not know how much money is on it, so it is uncertain whether the rent will be paid;
• In the case of costs due to damage, they also have no certainty that they can be paid.

Therefore, rental companies do not always accept pre-paid credit cards. If you find a rental company that accepts pre-paid credit cards as payment and for the deposit, please read the terms and conditions carefully before signing.

Rent a car in Iceland with a credit card in someone else's name

If you cannot provide a credit card in your name when picking up the car as main driver, you will not get the car. Is there a second driver who has a credit card? Then you have two options:

• Then change the name of the main driver in the booking and use his/her credit card.
• Or you can cancel the booking on the spot and make a new booking with the other driver as main driver.

Both options may incur additional charges.

Rent a car in Iceland without deposit

Some rental companies in Iceland require a high security deposit for the rental cars. Depending on which car you rent, the deposit you must leave can sometimes be as high as €3000 (about 3600 USD). Before booking, please check the amount of the deposit for the car and the credit limit on your credit card. If the credit limit is not enough, you can try to increase it.

Isn't it possible to increase the credit limit? In Iceland, some rental companies offer packages with comprehensive insurance that include reduced or no deposits. When picking up the rental car, however, you will still need a credit card in the name of the main driver.

A single local rental offers renting a car without a credit card. A cash deposit will then be requested. Always check the car you are taking along before signing an agreement, considering the age of the car and the condition of the tires.