Your credit report shows your credit history since your first credit approval. It states the duration of your credit history and how many times you made late payments during the previous seven years. It also indicates the minimum monthly payment, credit limit and current balance for each account.
Credit Scoring
Credit scoring is based on several factors. A computer compares the amount you owe for each account with your available credit. It also bases your score on your total available credit, the duration of each account, late payments and the extent to which those payments were late.
Car Rentals
Car rental companies do not check your credit before you rent a car from them, if you use a major credit card. They pass your credit card through their card reader and verify that you have sufficient credit available to rent a car, and to put a credit hold on a deposit. This will not have any effect on your credit. If you use a debit card, they will usually check your credit and put a large hold on your account until you return the car. It can take up to 30 days for the rental agency to release a hold on your debit card. This can be a problem, if your checking account balance is low and you need to use your card to pay for your hotel or dinner.
Inquires
Your credit report does not show inquires from your existing creditors, but it will show inquires from a potential new creditor if you applied for credit with it. If a creditor reviews your credit to determine whether it will grant you credit, then ultimately grants you the credit, the inquiry will not affect your credit score. If it does not approve your credit request, it will appear on your credit report and have a small effect on your score. Multiple inquires from several lenders that do not approve your request show that you are shopping for credit, which will have a greater effect on your credit score.
Considerations
If possible, you should use a credit card to rent a car. Car rental agencies do not like to accept debit cards. Some locations will not accept them at all. If you do use one and the agency runs your credit, it may turn you down if your credit is poor, even though you have enough cash in your checking account to cover the rental fee and a large deposit. In some cases, the rental agency may also check your driving record, and it will turn you down if you have an excessive number of tickets or accidents.
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