How the Yendo credit card works, step by step
From checking your offer to getting your title back, here is exactly what happens when you use your car to secure a Yendo card.
- $0 cash deposit
- You keep driving
- Mastercard network
Collateral
Your title, not your keys
The car stays with you the whole time.
In short: Yendo is a credit card secured by your vehicle instead of a cash deposit. You check your offer, verify your car with photos, hand over the title (or loan details), and Yendo records a lien. You keep driving. The lien comes off when you pay to $0 and close the account.
The six steps, at a glance
Check your offer
Enter your details and your vehicle. Yendo says pre-approval doesn't affect your credit score.
Photograph your car
Take photos in the Yendo app so the vehicle and its condition can be verified.
Hand over the title
Drop it at a partner location or mail it by FedEx, shipping covered, per NerdWallet.
Lien is recorded
Yendo is added as lienholder. A one-time state fee of up to $25 may apply.
Use your card
Spend anywhere Mastercard is accepted and earn 1.5% cash back.
Pay off and close
Pay the balance to $0 and close the account to get the lien released.
What "secured by your car" means
Most credit-builder cards ask for a cash deposit, often $200 or more, and that deposit becomes your limit. Yendo replaces the cash with your vehicle's equity: the part of the car's value you own outright.
Because the card is backed by something valuable, Yendo can offer credit to people who might not qualify for an unsecured card. The trade-off: the car becomes collateral, and if the account defaults the lender has a legal claim on it. The card is issued by Cross River Bank, Member FDIC, runs on the Mastercard network, and activity is reported to all three major credit bureaus.
Verifying your car takes a few photos
Instead of an in-person inspection, you photograph the vehicle in the Yendo app. Year, make, model, mileage and condition all feed into the limit you're offered.
Take photos in good daylight and make sure the odometer reading is legible to avoid back-and-forth.
How long the lien lasts
The lien is active for as long as the account is open. That's the period when you can use the card, and when missed payments put the vehicle at risk.
Title-holding vs. lien-recorded states
How your title is handled depends on your state. In some states the lienholder keeps the paper title. In others the lien is recorded with the state and you get a release to take to the DMV when you're done.
Either way, you can't sell the car or transfer a clean title until the Yendo balance is paid and the lien is released. See how to get your title back.
Day to day, it's a normal credit card
Tap, insert or pay online anywhere Mastercard is accepted. Purchases earn 1.5% cash back, and the APR is fixed at 24.88%–35.88% depending on your offer.
Pay the full statement balance each month and you pay no interest on purchases.
Before you hand over your title
Make sure you could keep up with payments even in a bad month. If the account defaults, the lender may pursue repossession under your agreement and state law. Read what happens if you miss a payment.
Common questions
Do I have to give Yendo my car keys?
No. You keep your keys and keep driving the car. Only the title, or your auto loan details, is used as collateral.
Can I use Yendo if I still owe money on my car?
Yes, vehicles that are financed or leased can qualify, but your limit depends on how much equity you have. The process differs slightly from an owned car.
Does checking my Yendo offer hurt my credit score?
According to Yendo, checking pre-approval does not affect your credit score. Opening an account can involve a fuller credit review.
Where is the Yendo card accepted?
Anywhere Mastercard is accepted, online and in stores.
Photos via Unsplash.