How Car-Secured Credit Works
From checking eligibility to using your card at any Visa terminal — here's the full process, plain and simple.
You Check Your Car's Eligibility
The process starts with a soft inquiry — a check that doesn't affect your credit score. You provide basic information about your vehicle (year, make, model, mileage) and the lender estimates your credit line based on your car's current market value.
Lender Assesses Your Vehicle's Equity
Unlike traditional cards, the credit limit isn't based on your FICO score. It's based on how much your car is worth and how much you owe on it (if anything). The difference — your equity — determines your potential credit line. Typical LTV is 50–70% of equity.
A Lien Is Placed on Your Title
If you're approved, the lender places a lien on your vehicle's title. This is how the car secures the credit line. You keep the title, you keep driving your car. The lien just means the lender has a recorded security interest while the account is open.
You Receive a Visa Credit Card
Your car-secured card works like any Visa credit card. Use it anywhere Visa is accepted — groceries, gas, online shopping. You get a statement each month with a minimum payment due.
You Pay Your Bill, Your Credit Builds
Monthly payments are reported to all three credit bureaus (Equifax, Experian, TransUnion). On-time payments build your credit history and improve your score. Your credit line is revolving — pay it down, and it's available to use again.
When You Close the Account
Once you close the account and pay the balance in full, the lien is removed from your title. Your car is fully unencumbered. Read your account agreement carefully to understand the lien removal process before you apply.
Common Questions
No. You keep driving your car normally. A lien is placed on the title, but your car stays with you. The lender only has a security interest — not possession.
Late payments are reported to credit bureaus and will negatively affect your credit score. In a severe, extended default scenario, the lender could repossess the vehicle — similar to how a home can be foreclosed on for a HELOC default. Review Yendo's specific default and repossession terms carefully before applying.
Your credit score is not the primary factor. Vehicle equity is. Yendo uses the value of your car to determine approval and credit limit. Review Yendo's current eligibility criteria directly, as underwriting standards can change.
Availability varies. Check Yendo's current state availability on their website before applying — it may not be offered in all states.
Ready to Check Your Car?
Soft inquiry only — no credit score impact. Takes under 5 minutes.
Check My Car's Eligibility →Affiliate link · DriveCredit is not a lender