Yendo car-secured credit card
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A credit card secured by your car's value instead of a cash deposit; it reports to all three credit bureaus. Yendo lists a 24.88% to 35.88% purchase APR and a $40 annual fee for the Auto Card, but its site-wide disclosure says 29.88% to 35.88% and $40 to $69, so check your offer. Your car is collateral. US only, not in every state.
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Disclosure: Some links are sponsored. We may earn a commission if you apply through them and are approved, at no extra cost to you. Facts come from the CFPB, the Federal Reserve Bank of Philadelphia and Yendo's own FAQs, checked October 29, 2026. This is general information, not financial advice.
Last reviewed: by the Smart Savings Guides editorial team. How we research and update articles.
The difference is collateral: a secured credit card needs a cash deposit, which usually becomes your credit limit, while an unsecured card is approved on your credit history and income alone. Both build credit the same way, by reporting on-time payments to the credit bureaus. A secured card is easier to get with no or poor credit; an unsecured card ties up none of your cash and usually has better terms once you qualify.
Key takeaways
- Secured: you put down a deposit (for example $500) and can usually spend up to that amount.
- Unsecured: no deposit; the issuer sets your limit from your credit history and ability to pay.
- Same credit-building: what matters is that the card reports to the three bureaus and you pay on time.
- Getting the deposit back: usually when you close the account in good standing, or when the issuer "graduates" you to an unsecured card.
No cash for a deposit, but you own a car?
Sponsored link: we may earn a commission if you sign up, buy or are approved through it, at no extra cost to you.
Yendo's card is secured by your vehicle instead of a cash deposit. Checking your offer is a soft inquiry.
Check if you qualify for Yendo
Accepting an offer triggers a hard inquiry and puts a lien on your car title, so missed payments could put the car at risk. Yendo's FAQ lists a fixed purchase APR of 24.88% to 35.88% and a $40 annual fee; check your own offer. US only: through our link it isn't offered in AK, HI, IA, LA, ME, MD, MA, MN, MO, NJ, NY, OK, SD or WI. Not for anyone who might carry a balance they can't repay.
Side by side
| Secured card | Unsecured card | |
|---|---|---|
| Deposit | Yes, usually equal to the limit | No |
| Who it's for | No credit history, or credit that needs rebuilding | Fair to good credit and steady income |
| Credit limit | Usually small, set by your deposit | Set by the issuer; can be higher |
| Fees and interest | Can be high, says the CFPB; compare carefully | Varies widely; many have no annual fee |
| Builds credit? | Yes, if it reports to the bureaus | Yes |
| Your money | Deposit is held until you close or graduate | None tied up |
How a secured card works
The CFPB describes it simply: you put in an amount of cash, for example $500, and can then spend up to that amount. When you pay your bill, your available credit goes back up. As you show you can pay on time, the issuer may raise your limit and refund your deposit. The Federal Reserve Bank of Philadelphia notes that you generally can't touch the deposit until the account is closed or converted to an unsecured card.
A secured card is a real credit card, not a prepaid card. The CFPB says a secured card should report to the three national credit reporting companies, while most prepaid cards don't. Before you apply, ask the issuer whether it reports to Equifax, Experian and TransUnion.
When to move to an unsecured card
- Your secured card has a record of on-time payments and low balances.
- Your issuer offers to graduate you, or you can check pre-approval offers without a hard inquiry.
- You won't be tempted by a higher limit: keeping balances low matters more than the limit itself. See credit utilization explained.
Don't close your oldest card just because you got a new one: myFICO says the length of your credit history, including the age of your oldest account, makes up about 15% of a FICO Score.
What if you can't afford a deposit?
Some cards secure the line with something other than cash. Yendo, for example, uses your car as collateral; see Yendo vs a secured credit card for the trade-offs. Other options are covered in secured credit cards with no deposit and credit builder card vs secured card.
Check if you qualify for Yendo
Sponsored link: we may earn a commission if you sign up, buy or are approved, at no extra cost to you. Check current prices and terms on the provider's own site first.
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Frequently asked questions
Is a secured or unsecured credit card better for building credit?
Both build credit the same way if they report to the three bureaus and you pay on time. A secured card is easier to get with no or poor credit; an unsecured card doesn't tie up a deposit.
Do you get your deposit back on a secured card?
Usually yes, when you close the account in good standing or when the issuer moves you to an unsecured card. Until then, the deposit is generally held and you can't use it.
Can a secured card become unsecured?
Some issuers review your account and "graduate" you to an unsecured card, refunding your deposit after a record of on-time payments. Others require you to apply for a new card. Ask your issuer how it works.
Do secured credit cards have high fees?
They can. The CFPB says fees and interest rates can be high on secured cards, so compare the annual fee, any setup fees and the APR before you apply, and pay in full each month to avoid interest.
Sources
Official sources this article relies on, checked October 29, 2026. Rules and prices change, so confirm details at the source.
More guides
- Thin or No Credit File? How to Start Building Credit
- Secured Credit Cards Explained: How They Work and How to Graduate
- How Credit-Builder Loans Work (and When They Make Sense)
- Credit Utilization Explained: The 30% Rule and What Really Matters
- How to Check Your Credit Report for Free on AnnualCreditReport.com
- Yendo vs a Regular Secured Credit Card: Which Fits You?
- Can You Get a Credit Card With No Credit History?
- Car Title Loan vs a Car-Secured Credit Card: Key Differences
- How Long Does It Take to Build Credit From Scratch?
- Secured Credit Card With No Deposit? Your Real Options
- Yendo Requirements: Who Gets Approved and How It Works
- Credit Builder Card vs Secured Card: What's the Difference?
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