A product called the Tomo credit card was developed by San Francisco-based business TomoCredit or bad credit (FICO scores of 629 or lower) who want to build a credit history without carrying a balance on a regular basis. There isn’t an annual charge, a security deposit, or even an APR, in contrast to many cards that cater to the same demographic.
Tomo credit never performs a credit check, in contrast to conventional credit card issuers that frequently do so while evaluating your application. Instead, a variety of data elements, including your income or potential for income and account balances, might be weighed by the corporation using proprietary technology. This information is used by the card’s issuing bank, the new york-based community Federal savings bank, to decide whether or not you qualify for the card.
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In this respect, the Tomo credit card is comparable to other alternative credit cards that may employ distinctive underwriting strategies unrelated to credit scores. But that does not imply that everyone will benefit from the card.
The Tomo credit card is covered by the following five points.
- A preapproval procedure exists: You must first check the website to see if you are preapproved by entering your age, income, and bank account balances. A pre-approval essentially amounts to the issuer saying yes to you based on the data you provided. You can proceed to the following stage if you have been preapproved.
You receive an offer to formally apply for the card through email from the company. You will receive an acceptance or rejection after submitting the official application after TomoCredit has had a chance to look over further information.
- There is no need for a credit check, but a linked bank account is when you formally apply, there is no hard draw on your credit report, so it won’t affect your credit scores the way a conventional credit card application does. Instead, Tomocredit claims that in order to assess eligibility, it considers a variety of data factors.
One of them is your financial situation and management methods. According to Kristy Kim, CEO, and co-founder of TomoCredit, it uses many data points including your phone number, email address, the method used to apply for the card, the balance in your bank account, the quantity and consistency of your income, and other red flags.
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Tomocredit requires you to link at least one account with plaid, a third-party service provider, in order to access this data. You are able to link a checking, savings, investment, or another qualifying account. The company’s website states that your bank account login information is not saved and is not accessible to Tomocredit staff members.
- Because you cannot carry a balance, there is no APR: There are no fees or interest charges with the Tomo credit card. Instead, Tomo’s credit is compensated by the merchant when you use your card to make a purchase through interchange fees. Because you cannot carry a balance from month to month with the Tomo credit card, unlike standard credit cards, it is impossible to accumulate debt. Your initial automatic payment schedule is for seven days. Every week, payment is automatically withheld from your bank account to pay the debt. Regular payments help you create credit by reducing your credit use, which is a major element in your credit scores.
The three main credit bureaus-TransUnion, Equifax, and Experian-are informed about payments. These businesses gather the data necessary to determine your credit ratings. According to Kim, Tomocredit enables you to switch the payment plan to a more conventional monthly cadence after around three months of use.
- The credit limit is possibly high and offers benefits: You might be eligible for a credit limit of up to $10,000, depending on the considerations TomoCredit gives in its underwriting. You can also see an increase in your credit limit after completing the first payment on time, says Kim. additionally, cardholders will receive a 1% cash-back rewards rate, which is competitive for cards in this class but below average for regular cards. Rewards can be redeemed for a statement credit.
- With no social security number, you might be eligible: The Tomo credit card may also be appropriate for newcomers to the united states who desire to establish credit. You can submit an application using the information from your passport if you don’t have a social security number or Individual Taxpayer Identification Number. The functionality still doesn’t exist very often in credit cards. However, in some circumstances, the deserved EDU Mastercard for students is a different card that does not demand a social security number up front. Similar to that, it doesn’t have an annual fee and accrues points.
Tomo provides unsecured credit cards with no annual fee, interest, or credit check. It offers 1% cash back on all purchases and reports to the three main credit reporting agencies.
A product called the Tomo Credit card was developed by San Francisco-based business TomoCredit for people who have no credit or bad credit (FICO scores of 629 or lower) who want to build a credit history without carrying a balance on a regular basis.
The Tomo credit card bears the Mastercard logo, which is widely recognized throughout the world. Although credit limits start at $100, you can be qualified for a credit limit of up to $10,000 depending on your situation and financial condition.