Yendo, a fintech startup that raised $165 million in funding last year, is offering a credit card program targeting customers with poor credit scores, requiring borrowers to put their vehicles up as collateral.
Founded in 2021 by Jordan Miller, George Utkov, and Daniel Ashy, Yendo claims to have saved customers over $50 million in interest and fees compared to alternative lending products.
The company secured $150 million in debt financing from I80 Group in May 2024, plus $15 million in equity from strategic investors, to expand nationwide. It now offers credit limits up to $10,000 but will seize vehicles if cardholders miss payments.
“The size of the US population that is credit-strapped is so much bigger than people realize,” Miller told Fortune. “It’s mind-blowing.”
Not surprisingly, the company grew its business by 700% in 2023 and quadrupled its member base in 2024.
Credit card debt has reached $1.13 trillion, according to Federal Reserve data, with delinquency rates climbing to 7.18% in the fourth quarter of 2024. Auto loan delinquencies also rose to 2.96%.
Yendo charges a 29.88% APR and a $40 annual fee for balances over $50. Customers who pay their monthly balance in full avoid interest charges. The company aims to differentiate itself from car title lenders, who can charge up to 300% APR.
Cardholders must pay at least 1% of their debt or $50 monthly, whichever is higher, within 25 days of their statement. Yendo places a lien on each borrower’s vehicle and provides hardship programs for struggling customers.
Miller says his company provides a less predatory option than traditional title loans. However, consumer advocates warn the program still puts borrowers’ transportation and jobs at risk.
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