Comparisons with Other Financial Products

In this section, we explore how Yendo compares to other financial products, highlighting its unique features and potential drawbacks.

Comparison with Secured Credit Cards

Secured credit cards are commonly offered by major banks and credit unions. They require a cash deposit, which becomes your credit limit. For example, a $500 deposit results in a $500 credit limit. This deposit acts as collateral and may be returned after demonstrating responsible use over six months to a year.

Yendo differs in that it does not require locking up cash for credit limits. However, it currently lacks a graduation feature to transition to an unsecured line of credit, though this is planned for the future. Secured cards typically report to all three major credit bureaus, while Yendo reports to two. Yendo has a $40 annual fee, waived for the first year, whereas some secured cards have no annual fees.

"Yendo, however, provides you access to meaningful credit limits without the need of locking up your cash like a normal secured card."

Comparison with Title Loans

Title loans often come with extremely high interest rates, sometimes reaching hundreds of percent APR. For instance, a $2,000 loan at 300% interest could result in over $4,000 in interest payments. Yendo offers lower interest rates and functions as a revolving line of credit, unlike title loans which require reapplication after repayment.

With Yendo, the title is retained, allowing continued access to the credit line. This flexibility is a significant advantage over traditional title loans.

In summary, Yendo offers a unique financial product that provides credit access without the need for cash collateral, and with more favorable terms than traditional title loans. However, it does have some limitations, such as limited credit bureau reporting and the absence of a graduation feature.