Yendo Mastercard^® Review: Could This Card Help You Gain Access to Credit?

Card Basics

Recently, my friend decided to buy a home. She had no credit history since she had steered clear of debt, so she needed to improve her credit score to get a mortgage. To do that, she applied for a secured credit card, which meant putting down a deposit. This option can help you show you're responsible and build your credit score, but not everybody can afford to do that.

The Yendo credit card is a Mastercard that you can get approved for by using your car as collateral. This alternative provides access to a credit line of up to $10,000 without making a cash deposit to secure the debt. This may seem like a good idea, but it's actually a high-risk strategy that I wouldn’t recommend to my friend or anyone else.

When you request pre-approval, Yendo won’t do a hard credit check. Rather than deciding whether to approve you solely based on your credit history, Yendo also considers details about your vehicle, expenses, and income. It will evaluate how much your car is worth versus what you owe on it to approve you for a credit line based on those factors and your ability to pay.

Once approved, you get instant access to a virtual card while you wait for the physical version. You'll pay a $40 annual fee and be able to charge up to your credit limit.

Yendo reports your payment history to the three credit reporting agencies. This is a big benefit because it can help you build credit. The big downside is that you risk losing your car if you don't make your payments.

Who should get the Yendo credit card?

The Yendo card isn’t right for everyone. Let’s look at situations where you may want to apply.

You have lots of equity in an eligible vehicle

To decide whether you can borrow and how much you can get, Yendo considers the amount of equity you have in your vehicle. That's the amount you owe versus the value of the car. For example, if your car is worth $15,000 and has a $7,000 loan balance remaining, your equity would be $8,000. Yendo also requires that the car works and is no older than a 1996 model.

If you don't have sufficient equity in an eligible vehicle, Yendo won’t approve you, and if you have very little equity, you may get a very low credit limit. Keep in mind your overall finances will also impact your credit limit and approval. You could qualify for anywhere from $450 to $10,000, so consider whether your potential credit line is sufficient for your borrowing needs.

You want to build credit but can’t make a deposit

Most secured cards allow you to make a deposit, which may or may not equal your credit line, to qualify. You can use that card responsibly and pay the bills on time to build credit. This is the type of card my friend got to improve her score.

Since Yendo doesn't require a deposit, it can be a good option if you can't afford to tie up your money. Remember, though, that rather than putting your cash on the line, you’re putting your vehicle at risk.

In exchange for credit, Yendo requires providing your car’s title if you own it outright or transferring the auto loan if you’re still making payments. However, you do retain ownership of the vehicle while you have the card.

You’re confident you won't default

Before applying for the Yendo card, you must be 100% confident you will never charge more than you can pay back. If you fail to fulfill your obligations, you could lose your car. You don’t want to take a chance of this happening unless you trust yourself not to overspend. You might find Yendo a bigger risk than simply losing a bank deposit like with a regular secured card.

What should you know before applying?

Before deciding on a Yendo card, you should weigh the risks of secured vs. unsecured debt.

If you have unsecured debt, your lender only has your promise to repay it since there’s no physical property as collateral. If you don’t pay, the lender could take steps such as charging fees or sending the account to collections. In serious cases, the lender might take you to court and potentially garnish your wages or put a lien on your property to enforce the judgment. However, it's very rare to actually lose your property with unsecured debt.

With secured debt, you put up an asset as collateral. The lender gets an ownership interest (lienholder) and can take the asset if you don't pay. With the Yendo card, you’re using your vehicle to guarantee the credit line, and you take the very big risk that you could lose your car if you fall behind in payments.

Top benefits of the Yendo credit card

Here are some of the biggest benefits of the Yendo secured card.

• You can build credit: Yendo reports to Equifax, Experian, and TransUnion. It can be hard to find a lender willing to give you a credit line or loan if you don't already have good credit, so this is a major benefit for building credit to work toward goals like buying a home.
• You can refinance your car loan: If you apply for the card and still have a car loan, refinancing it through Yendo might lower your monthly car payments.
• You don't have to put down a deposit: My friend had to put down a $200 deposit to get a card with a $200 limit. Not everyone can afford to tie up money like this, and Yendo avoids this potential roadblock.
• You might get access to a large credit limit: Many secured cards have low limits that might start at just a few hundred dollars. Yendo allows you to borrow as much as $10,000 depending on how much equity you have in your vehicle and your overall financial situation.

Why you might want a different credit card

There are also some big disadvantages of the Yendo card, including:

• There's a $40 annual fee: Some secured cards don't charge you just to be a cardholder, and the annual fee can get costly alongside Yendo’s high APR.
• You could lose your car: It's a much bigger problem if your car is repossessed than if you lose a few hundred dollars with a secured card that just requires a cash deposit. You might prefer a traditional secured card with a low deposit requirement to avoid that high risk and still get access to credit.
• You'll pay foreign transaction fees: Using your card abroad can get expensive due to Yendo’s 3% foreign transaction fee, which you can avoid with some alternative cards.
• You won't earn any credit card rewards: Many other cards, including some secured options, allow you to earn rewards on your purchases. Unfortunately, Yendo doesn't.

Alternative credit cards to consider

When you’re trying to build credit, carefully research the best credit cards to see which one makes sense for you. This is especially important if you are looking for secured cards because they can come with high costs. Here are three cards that might be better options for you than Yendo.

Discover it^® Secured Credit Card

The Discover it^® Secured Credit Card allows you to qualify by making a refundable deposit. You can open an account with as little as $200. This is a lot less risky than putting your car on the line. You can earn rewards on purchases and Discover will match all the cash back you’ve earned at the end of your first year.. There's also a $0 annual fee.

This is the card I told my friend to get. If it's at all possible to save up $200 and your goal is to build credit rather than gain access to the largest credit line, consider choosing the Discover it Secured Credit Card rather than using Yendo.

Read our Discover it Secured Credit Card review.

BankAmericard^®️ Secured Credit Card

The BankAmericard^®️ Secured Credit Card allows you to gain access to between $200 and $5,000 in credit, depending on your deposit amount. There is a $0 annual fee, and you get cardholder benefits, including free monthly FICO score updates for keeping tabs on your credit-building efforts.

Bank of America will also periodically review your card to see if you qualify to get part of your refund returned to you. This is a huge benefit since you may eventually qualify for some unsecured debt.

Capital One Platinum Secured Credit Card

The Capital One Platinum Secured Credit Card offers the option to get pre-approved with no damage to your credit and lets you gain access to a line of credit with a deposit of $49, $99, or $200. Your deposit is refundable, and over time, you can become eligible to upgrade to an unsecured Capital One Platinum card.

There's a $0 annual fee for this secured card, and you can make additional deposits to raise your credit line to as high as $1,000. With the low deposit requirements, this option can be a great choice if you’re worried about affordability.

Read our Capital One Platinum Secured Credit Card review.

FAQs

Bottom line

If you don’t mind risking your vehicle for access to a line of credit and paying a $40 annual fee to do it, Yendo could work for you. Just make sure that you can control your spending and not miss any monthly payments while you use this card to build your credit.

If Yendo doesn't seem like the best financial choice, choosing a regular secured credit card is a far better option. You can look for secured cards that have low deposit requirements and no annual fees and then rework your budget to save up for the deposit. Once you build your credit, consider looking for traditional credit cards with more perks and no collateral requirements.

Great for a credit line of up to $10K

Yendo Mastercard^®

3.2

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Yendo Mastercard^®

Apply Now

Current Offer

Use your car to access credit. Pre-approval takes just 3 minutes and does not impact your credit.

Annual Fee

$40

Benefits and Drawbacks

Benefits

• Yendo provides you with up to $10,000 in credit.
• You don't need to put down the deposit that traditional secured cards require.
• You can refinance your car loan.
• You can get pre-approved without damaging your credit score.
• You can use your Yendo card to build credit.

Drawbacks

• You risk losing your car if you can't repay Yendo as promised.
• Yendo isn't available in all states.
• There's a $40 annual fee for the card.
• Yendo doesn’t offer credit card rewards.

Card Details

• Use your car to access credit
• Pre-approval takes just 3 minutes and does not impact your credit
• Credit line of up to $10k
• Yendo reports to all 3 bureaus, so with responsible usage, it can help build credit
• Virtual card is provided upon approval and offer acceptance
• Accepted everywhere Mastercard is accepted
• Fraud coverage if your card is lost or stolen - access your account 24 hours a day, 7 days a week
• ITIN accepted
• Yendo credit cards are issued by Cross River Bank, Member FDIC, pursuant to license from Mastercard International © 2024 Yendo, Inc. All rights reserved.