Should I borrow money against my car? People with bad credit are being offered this opportunity which comes with significant risks

That’s because it comes with a catch, where you could lose your car if you miss a credit card payment.

Billing itself as the first-ever vehicle-secured credit card, Yendo is an alternative to payday loans, offering monetary advances to people who normally wouldn’t qualify.

In exchange for the credit card, Yendo puts a lien on your vehicle.

Under “If I miss a payment, will I lose my car?” on the company website’s FAQ section, Yendo explains “as a lienholder, we can exercise our right to recover an outstanding balance, but this is our last option.”

Customers have 25 days after their monthly statement to make a minimum payment of either 1% of their debt or $50, whichever is greater, the company’s website says.

Bad bet or better option?

Yendo’s CEO and co-founder, Jordan Miller, told Fortune that he’s offering Americans with bad credit a better option than the predatory loan alternatives.

For example, car title loans, where drivers borrow money using their car as collateral, can charge as much as a 300% annual percentage rate (APR), according to the Federal Trade Commission.

That’s more than ten times the average interest charged for loans or credit cards, the Federal Reserve’s lates figure shows.

A more popular loan type for poor-credit borrowers is a payday loan, which offers cash advances based on your paycheck.

More than 12 million Americans take out payday loans every year, according to the Consumer Financial Protection Bureau, and they pay close to 400% APR.

Car title loans and payday lending should be stamped out by Yendo’s less predatory model, Miller argued to Fortune.

“The size of the U.S. population that is credit-strapped is so much bigger than people realize. It is mind-blowing,” says Miller.

“We’re trying to solve this.”

A better last resort is not a good first choice

Putting a lien on your car could put your livelihood or well-being at risk, so take your time to consider doing so.

Calculate how much you need to borrow and if you could make the monthly credit card payments, because failure to do so could cost you your vehicle.

Yendo offers people in hard financial situations a less onerous way of accessing credit, but that doesn’t mean it’s your only option.

Improving your credit will help you qualify for a credit card, loan or other financial tools that don’t involve putting personal possessions on the line.

How to fix your credit score fast

Improving your credit score quickly starts with taking the time to examine your credit history.

You can get a free credit score, free credit report card, credit trackers and advanced reporting on your credit history from a number of online services.

Next, track down outdated or incorrect billing information on your credit history.

You could have been charged for things you didn’t buy or you could be listed as owing on a debt you already paid.

If there are major issues with your credit report, some law firms can track down documentation to dispute the charges.

There’s also something called a secure credit card, where you give the bank an amount, say $500, as collateral and they allow you to use the card to help rebuild your credit score.

A guide to credit scores

Some people may not know what their credit score is, or if they have good credit.

First, you can check your credit score for free.