Originally published by Cardsrate.com

In a Nutshell: Your credit history can discourage lenders from approving you for credit cards with the credit limits you desire. But not all companies use the same criteria when determining your card’s limit. Yendo lets borrowers use the equity in their car to access more purchasing power through its credit cards.

Most people remember the first time they do or experience something. I’ve flown on planes many times in my life to the point that traveling across the country on a jet isn’t exciting in and of itself anymore. Waiting in airports just to cram into a crowded cabin can be aggravating, but it’s all more or less ho-hum when everything goes as it’s supposed to.

But I’ll never forget my first time on a plane. I anticipated the trip for months, counting down the days until I finally boarded one of those little ships I’d marveled at from the ground for so many years. I wasn’t quite as excited to receive my first credit card as I was for my first trip on an airplane, but I did feel a sense of pride when I’d been approved for my first card.

Credit cards open financial doors that amplify our purchasing power and grant us convenience. But someone with bad credit may struggle to secure a credit card with a credit limit that suits their way of life.

Yendo helps people acquire the credit card that works for their financial position. The company allows you to use the equity in your car to access higher credit limits at favorable terms. We spoke with Jordan Miller, Yendo’s CEO, to learn more about how the company’s innovative approach to lending benefits borrowers.

Miller told us that his studies of consumer finance led him to realize that underserved people didn’t have the same chances to acquire affordable credit cards as people with healthy credit histories.

“The more we dug into the problem, the more we realized that a lot of the rates that were being charged were due to a lack of innovation and reliance on outdated structures,” Miller told us. “We kind of found that the industry hadn’t really progressed past the nineties. People were being unnecessarily punished for not fitting into older credit models.”

Miller and his team set out to create a solution that would help underserved people become eligible for traditional underwriting methods. He told us that underserved Americans own north of $1 trillion in vehicle equity, making cars their largest asset by far.

People can apply for a Yendo credit card on the company’s website. Miller told us applying for the card takes less than five minutes, and approved applicants receive their card in the mail a few days after submitting their application.

“The average credit limit that we give out is about $4,400, which is 10 times the typical starting subprime limit,” Miller told us. “And the rate we offer is comparable to super prime cards.”

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Applying for a Credit Card With Yendo is Simple

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The economic pressures of raising a family in the 21st century can create stress for parents. Add the effects of inflation to the mix, and you see more people overwhelmed by the cost of essential items like food and utilities.

Though Yendo initially focused its business on serving underserved consumers, the company has since expanded its reach to a broader group — the average American. Miller told us the average American borrows money to get by each month, and credit cards can be a vital part of their financial toolkit.

“Available credit really shrinks for a lot of people at a time when inflation and all these other things are kind of fighting in the other direction,” Miller told us. “We’ve seen a very fast adoption by the broader market, and it’s our job to assist people when they’re looking for access to credit. It’s definitely been interesting to see how our customer base has evolved with us.”

Yendo printed its first credit card in July of 2022. The company has honed its practices over time and expanded its reach to better meet the needs of cardholders.

People who apply for a Yendo card must supply the company with information about their vehicle. Applicants can provide their license plate number, vehicle identification number, or another identifying factor depending on where they live and the type of car they own. Yendo requires some applicants to submit pictures of the vehicle they’re using as collateral.

Depending on where an applicant lives, they may have to drop off their car title at one of the 93,000 businesses the company partners with, including CVS, Dollar General, and Walgreens stores.

“As soon as they drop off their title, or at least within a couple of minutes, their virtual card is available on their phone and their physical card shows up in a couple days,” Miller told us. “If we don’t require you to drop off your title, then your virtual card is activated on your phone as soon as you sign the agreement. As far as we know, we’re one of the fastest credit products there is.”

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Lower Interest Rates Bolster Borrower Finances

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Life is full of risks. Some people are afraid of flying because they think being up in the clouds and relying on a stranger’s skill to get them from one point to the next sounds risky. But more common modes of transportation such as riding in a car also present risks.

Anytime you submit something as collateral to receive a loan or other credit product, you risk losing that item if you can’t keep up with your payments.

“It’s really hard to lose your car with us because we do everything possible to make sure people don’t fall into that situation,” Miller told us. “Our minimum payment is 1% of the outstanding balance plus interest and fees, or $50, depending on whichever amount is lower. You have to miss many payments with us to wind up in a recovery situation, which we view as our last option.”

Yendo provides hardship programs to cardholders who are having difficulty making their monthly payments on time. The company also offers payment-assistance tools to help customers avoid missing a payment.

In the event that Yendo must sell a cardholder’s car, which can happen when the company isn’t able to reach a customer over time, the sale occurs at an auction. Miller told us the company uses the proceeds of the sale to recoup its expenses and sends any remaining funds to the customer.

Lenders often charge borrowers with bad credit higher rates than they do borrowers with stronger credit profiles. The prospect of earning more in fees compensates a lender for the risk of working with someone with credit that’s less than perfect. Yendo doesn’t charge different rates to different customers.

Miller told us Yendo’s card is a much cheaper tool for borrowers than most of the subprime card options other lenders offer.

“When you consider some of the alternative methods people can use, like payday loans or pawning your car title, those options have some of the highest APRs around, historically,” Miller told us. “We spend a lot of time making sure that if someone goes online to look for a title loan or payday loan, then they can find us instead. We’ve saved people $75 million in interest and fees compared to what they would’ve paid with a higher-interest credit product.”

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You Don’t Have to Own Your Car to Receive a Yendo Card

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Many people own their cars outright, which is part of what makes Yendo’s solution so convenient. Miller told us the company will work with people as long as their car was made after 1996 and has less than 250,000 miles on its odometer.

Vehicle owners don’t need to have the title of their car on hand to apply for a credit card through Yendo. Miller told us some of Yendo’s customers have misplaced their title over the years. The company partners with DMVs to locate vehicle titles if a car owner can’t produce it.

But you don’t need to own your car outright to secure a Yendo credit card.

“A lot of Americans have an existing auto loan, but that doesn’t mean they can’t get our credit card,” Miller told us. “What we do in that instance is we refinance the auto loan with one of our partners, and then we can give the customer a card. When they continue making monthly payments on their auto loan their credit limit gets bigger, so it’s like continuing access to equity.”

Yendo provides an app for customers who want to track their card spending while on the go. And the company’s website offers financial education that can help customers steer clear of predatory lenders.

Yendo’s credit card is available to residents of 40 states. Don’t worry if you live in an area that Yendo doesn’t serve yet. Miller told us the company plans to be in all 50 states soon.

“We’re really proud that we can offer higher credit limits to people,” Miller told us. “We want to provide the most equitable products, despite a person’s credit history. We help people in a way that lets them avoid falling behind.”

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