Comparison with Secured Credit Cards

Differences between Yendo and Secured Credit Cards

Yendo offers a unique approach compared to traditional secured credit cards. Typically, secured credit cards require a cash deposit into an account, which serves as the credit limit. In contrast, Yendo uses the equity in your vehicle to secure the credit card. This allows Yendo to extend credit limits up to $10,000 without requiring a cash deposit or checking your credit score. As a result, Yendo can offer higher credit limits than most secured credit cards.

"Typically secured credit cards require money to be deposit into an open account."

"Yendo instead secures your credit card by using the equity in your vehicle."

Advantages of Using Yendo over Secured Credit Cards

Higher Credit Limits: Yendo can offer credit limits up to $10,000, which is generally higher than those provided by secured credit cards.
No Cash Deposit Required: Unlike secured credit cards, Yendo does not require a cash deposit, making it more accessible for those who may not have spare cash.
No Credit Check: Yendo does not check your credit score, which can be beneficial for individuals looking to build or rebuild their credit.

Impact on Credit Score

Opening any credit account, including with Yendo, affects the average age of your accounts, which is a factor in your FICO score. However, this impact is relatively small, as the average age of accounts only constitutes 15% of your overall FICO score. The benefits of having more available credit, such as potentially lowering your credit utilization, can outweigh the risks and possibly improve your credit score.