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Renting a car in Iceland is practically a must if you want to explore the country and its unique landscapes. While a credit card used to be a strict requirement for picking up a vehicle, many local companies now accept debit cards and alternative payment methods. This approach eliminates the hassle of applying for new bank cards and saves you from paying credit interest fees.

Whether you arrive at Keflavík International Airport (KEF) and plan to collect your car in central Reykjavík or Hella, simply choose the pickup location that best suits the start of your Icelandic road trip. From the capital, you can set off on the famous Golden Circle route, which includes Thingvellir National Park, the Geysir geothermal area, and the spectacular Gullfoss waterfall.

From Hella, you can quickly reach popular attractions along the south coast, such as the Seljalandsfoss and Skógafoss waterfalls, Dyrholáey cape, and the iconic Reynisdrangar sea stacks near the town of Vík.

Advantages of Renting a Car Without a Credit Card in Iceland

On the Localrent platform, you can compare offers from local Icelandic rental providers and select a vehicle that does not require a credit card. This type of rental comes with several key advantages:

  • Accessibility for a wider range of travellers. Not having a credit card no longer prevents you from driving around Iceland.
  • Flexible payment options. You can pay for your rental with a debit card, cash, or in some cases cryptocurrency. Use the filters on Localrent to find offers that match your preferred payment method.
  • Transparent pricing. Without a credit card, you avoid potential bank fees for credit usage. Localrent displays the full rental cost, deposit amount, and charges for extras upfront.
  • Fewer barriers for younger drivers. Many younger travellers cannot obtain a credit card due to banking restrictions. For them, the option to rent a car with a debit card or cash may be the only way to organise an independent trip.

Car rental prices in Keflavik

Car rental prices in Keflavik
Jan €36
Feb €38
Mar €43
Apr €46
May €54
Jun €65
Jul €42
Aug €61
Sep €55
Oct €45
Nov €40
Dec €37

Payment Methods for Renting a Car Without a Credit Card

Rental providers in Iceland offer several ways to pay for a car without a credit card:

  • Debit card. The most popular option for paying the rental fee and deposit in Iceland. The main requirement is that the card must be issued in the name of the primary driver. The deposit amount may be charged or held on the account. Once the rental period ends and the vehicle is returned in good condition, the funds are refunded to the card.
  • Cash. Some rental companies accept cash payments for their services.
  • Cryptocurrency. Certain providers also accept deposits in digital currency.

Please note that a bank card is always required to pay the advance when booking.

What You Need to Rent a Car Without a Credit Card

When renting a car without a credit card in Iceland, you will need a standard set of documents:

  • a valid driving licence;
  • a passport or national ID;
  • a debit card in the primary driver’s name for the advance payment.

Rental companies also set age limits and minimum driving experience requirements for each vehicle. These details are listed on the vehicle’s listing page.

The demand for car rental services in Iceland

The demand for car rental services in Iceland
Jan 46 %
Feb 51 %
Mar 53 %
Apr 62 %
May 59 %
Jun 71 %
Jul 79 %
Aug 89 %
Sep 83 %
Oct 69 %
Nov 57 %
Dec 43 %
  

How to Book a Car Without a Credit Card in Iceland

Follow these steps to quickly find and book a car online for your trip around Iceland:

  1. Enter your pickup location and rental dates.
  2. Set the payment method filter to “Without a credit card.” The system will hide any offers that do not match.
  3. Compare available rental options from different companies. Pay attention to the rental price, deposit availability and amount, and the cost of extras.
  4. Open the listing of the vehicle you like to view its specifications, rental terms, and insurance options. Check that your preferred payment method is accepted.
  5. Complete the booking and pay a small advance (15–20%). A debit card is sufficient for this step.
  6. You will receive a voucher by email with your booking details and the contact information of the rental company representative. Save it on your phone or print it out.

Frequently Asked Questions

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

Yes. On the Localrent platform, you can find offers from local providers that do not require a credit card. To see available options for your dates, use the payment method filters.

Do the document requirements change if I rent with a debit card?

No. The standard set of documents — a passport and a driving licence — remains the same. Keep in mind the card requirements: it must be issued in the name of the primary driver, as it will be used for the advance and/or balance payment and the deposit.

Is there a minimum age for renting a car without a credit card?

Yes. Each company sets minimum and maximum age limits. These restrictions are determined by the rental provider for each vehicle, regardless of the payment method.

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