Tomo Credit Card Review – Credit for Those Without Credit
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Tomo makes credit building more accessible to people who normally couldn’t get a credit card or loan. You don’t need any credit history to get a card, and you can get started with Tomo even if you have bad credit.
7/10
Fees
8/10
Cash back
7/10
Credit building
9/10
Bonuses
7/10
A credit card increases your purchasing power and helps consumers improve their credit scores with every purchase. A higher credit score makes getting better loans easier and saving money on other expenses easier. You will also get rewards from most credit card companies. Consumers have many options, but that can also create a lot of stress. The Tomo Credit Card is a compelling choice that can be the right fit. Our Tomo credit card review will explore key details about Tomo’s card so you can determine if it’s a good credit card for your needs.
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What is the Tomo Credit Card?
Tomo offers credit cards that help users build credit and get high credit lines. The fintech company is a new entrant in the credit card industry with a 2018 launch. Kristy Kim and Dmitry Kashlev teamed up to start the company in San Francisco. They immigrated to the U.S. from South Korea and Russia, respectively. Kristy and Dmitry saw their families get access to less credit in the U.S. since credit history doesn’t come with you when you move to another country.
This context inspired Tomo, a fintech company that helps people get credit cards based on cash flow instead of previous credit history. Tomo’s unsecured credit cards are issued by Community Federal Savings Bank, a member of the FDIC.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
How does the Tomo Credit Card work?
Foreign nationals and Americans without credit histories have an easier path to entry with Tomo. To get a Tomo Credit card, visit the company’s website and click the “Get Started” button. After clicking that button, the website will send you a brief form that only asks for your email address.
You will have to provide your email address and then wait for an email containing additional instructions. Wondering what happens if you submit the form? I did, too.
I put my email address in Tomo’s form to see what would happen. I received an email about a minute after submitting the form containing details about my Tomo Credit Card being reserved. Tomo put me on a waitlist due to the overwhelming amount of new sign-ups. It shows the credit card company has been gaining more momentum, and you can share a referral link with your friends if you are interested. Tomo provided one for me at the bottom of the email. The approval process time could vary for everyone. Tomo has a few perks for referring friends to a Tomo Credit Card.
How much does the Tomo Credit Card cost?
A Tomo Credit Card costs nothing for cardholders. You do not pay interest on debt, and the card has no fees. Tomo makes money from its cards through interchange fees, which merchants pay after each credit card transaction. Consumers do not have to worry about these fees.
Tomo Credit Card features
The Tomo Credit Card has several features that make credit building more accessible and rewarding for cardholders. Here’s what you can expect if you partner with Tomo for your card.
No credit history requirement
Most credit card companies want to see your credit report when you apply. These card issuers view credit scores as measures of trustworthiness. Most issuers and lenders will not consider your application if you do not have a credit score.
Tomo is different. Instead of looking at your FICO score, Tomo looks at the financial history in your bank account with other sources to assess your credit card application. This approach makes credit cards more accessible to people who want to get started.
Credit score growth
Tomo reports your payment history to all three credit bureaus. The lack of fees or APR makes it easier to keep up with your balance and pay in full by the end of the month. Tomo also has a seven-day auto-pay option that streamlines credit card payments.
Adjustable spending power
Tomo looks at your financials to determine your spending power, which can be any number between $100 and $10,000. Not everyone gets the maximum $10,000 credit limit, but you can get a higher limit by linking more of your checking accounts or using the account with the most funds.
Free benefits
The Tomo Credit Card offers great perks tied to the World Elite Mastercard program. You can save up to $500 by capitalizing on the available credits. Here are some of the free benefits you can expect:
- DoorDash: Get three free months of DashPass and a $5/mo discount.
- ShopRunner: Free membership that comes with free two-day shipping and returns
- Lyft: Get a $5 credit if you take three rides with Lyft in one month. You can get the $5 credit every month.
- Fandango: Get $5 off your next purchase if you spend $20 on movie tickets or streaming.
Tomo Credit Cardholders get additional perks not tied to saving money, ranging from exclusive PGA Tour experiences, the World Elite concierge, and travel rewards in over 40 cities worldwide.
Peace of mind
Get cell phone protection from the incidentals. Tomo covers you if your phone gets stolen or damaged. You also won’t be responsible for any unauthorized purchase, and you can receive global assistance anytime and anywhere. Cardholders can even speak with ID specialists available 24/7/365 through Tomo’s World Elite Mastercard perks.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Who is the Tomo Credit Card best for?
Wondering if the Tomo Credit Card makes sense for you? The following groups stand to benefit the most from this card.
Foreign Nationals
Tomo was founded by two immigrants who experienced the struggles of obtaining credit in the United States. One Google review about Tomo came from an immigrant who mentioned the difficulty of getting credit in America. The reviewer mentioned that Tomo “was a huge help” in helping him get started.
People without a credit history
Tomo isn’t only for foreign nationals who want to build credit in the United States. U.S. citizens without credit history will face obstacles similar to those faced by traditional credit card issuers. If you do not have any credit history and want to get started, Tomo can help since it has no credit check.
People who need to avoid hard credit checks
Most credit card companies run hard credit inquiries during the application process. This credit check helps creditors assess applicants, but this process will hurt your credit score. Some people have good credit histories, and no loan applications are coming up. These individuals can endure a hard credit check without much consequence.
However, if you plan on getting a mortgage or auto loan soon, every point can make a difference in your interest rate. Applying for a credit card and getting a hard credit check will hurt your score. Hard credit inquiries only decrease your score by a few points, translating into a higher interest rate on your next loan or pushing you below the minimum qualifying score.
Debt-wary consumers
Credit cards have many advantages. These plastic financial instruments let consumers build credit and get rewards through everyday purchases. There’s plenty to love about credit cards, but a common fear is racking up too much debt. High interest rates and fees can turn credit card debt into a nightmare.
The Tomo Credit Card is not your conventional card. No interest or transaction fees accumulate on the card because Tomo does not charge cardholders. Their primary revenue source is merchants' interchange fees during credit card transactions. We discussed the interchange fees earlier, but Tomo has one more advantage: it stands out from other choices.
This advantage can be a disadvantage, depending on who you ask. However, it’s a big perk for people who want to avoid debt. Tomo does not allow cardholders to carry account balances into the following month. Most credit card issuers let you get away with the minimum payment, but Tomo does not make this exception.
If you do not pay your balance by the end of the billing cycle, Tomo will freeze your card until you make the payment. If this happens, Tomo will make automatic payments from your connected bank account until the debt is repaid. Along the way, you won’t have to worry about interest accumulation. This feature can protect consumers from going deeper into debt and encourage prudent financial choices.
Who shouldn’t use the Tomo Credit Card?
The Tomo Credit Card has several benefits but is not for everyone. These are some of the groups of people who may want to look for another credit card.
Consumers with good credit scores
There’s nothing wrong with using a Tomo Credit Card if you have a good credit score. Some people go from bad credit or no credit history to building good credit with Tomo Credit Cards. However, consumers with good credit scores might be able to find best credit cards with better perks for their excellent credit. Tomo has useful rewards rates, such as 1% cashback and World Elite Mastercard benefits. If you have a good credit score and want to avoid debt, Tomo can help. You may just leave some perks on the table if you don’t expand your horizons.
People who want high credit limits
Tomo cardholders cannot have credit limits above $10,000. That’s how the cards work, and there’s no guarantee you get the maximum. The lowest credit limit is $100, which doesn’t leave much room for expenses. You can get a higher credit limit if you get an unsecured card that looks at your credit history instead of your linked bank account(s).
The Tomo Credit Card can be a great starting point if you have low credit and want to establish yourself. However, it’s not the best card for getting a high credit limit.
People who want more flexibility in paying off credit card balances
The Tomo Credit Card isn’t the best if you want a flexible payment plan. You cannot carry any balance from this month’s billing cycle to the following month. Tomo Credit Cardholders must adhere to making on-time payments and pay the balance in full each month or risk getting their credit cards temporarily frozen. Tomo has a useful 7-day auto pay feature to reduce this risk, but it remains.
Some credit cardholders prefer only to make the minimum monthly payment and still access a high credit limit. You can take your time paying off your balance with other credit cards, but you must contend with interest rates and fees.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Pros and cons
Every financial product has strengths and weaknesses. The Tomo Credit Card is no exception to this rule. Here are the pros and cons:
Pros
- No credit history required. Tomo looks at your bank account and other information instead of checking your creditworthiness. If you have poor credit or no history, you can still get a card.
- No interest or fees. Tomo credit cardholders do not have to worry about their balances accumulating. No interest or fees make these cards more affordable than competitors.
- Get 1% cashback on all of your purchases. Any cashback rewards program helps, and Tomo delivers. You also get access to World Elite Mastercard benefits through your Tomo Credit Card.
Cons
- No balance carryovers. You cannot carry your balance from one month to the next. This gives you less time to pay your credit card debt in full. Your card will get frozen if you do not repay the balance on-time, that is, before the next billing cycle.
- Low credit limits. The maximum credit limit for a Tomo Credit Card is $10,000. Most people get less than the maximum, and you can have a credit limit as low as $100. That’s not much money to use for expenses, and you may end up with a higher credit utilization ratio.
- Not much beyond a credit card solution. Some consumers get credit cards from issuers that also provide loans, budgeting tools, and other resources. If you get a credit card with Tomo, the experience begins and ends there. The credit card can do its job well, but there isn’t much beyond the card.
Tomo vs. competitors
Credit Card | Credit History Required | Variable APR | Max Credit Limit | Rewards Program |
|---|---|---|---|---|
Tomo Credit Card | No | 0% | $10,000 | 1% cashback |
The Platinum Card® from American Express | Yes | See Pay Over Time APR | $50,000 | 1x points on other eligible purchases |
Apple Card | Yes | 19.24% - 29.49% APR | $40,0,00 | Up to 3% cashback |
The Platinum Card® from American Express
The Platinum Card® from American Express has many rewards and a higher credit limit than Tomo and Apple. You can get 1x points on other eligible purchases.
The Platinum Card® from American Express has a lot going for it, but the main drawback is the $695 annual fee. The interest rate on an The Platinum Card® from American Express debt is also higher than Tomo and the Apple Card.
Apple Card
The Apple Card incentivizes cardholders to buy Apple products through its 3% cashback rewards program. The 3% cashback applies to Apple products, but you can receive cashback on every purchase. If you love Apple products, you will probably enjoy this card. Given how expensive Apple products have become, saving money can help.
Apple Cards have enhanced security through Face ID, Touch ID, and Apple Pay. You can use the digital version on your smartphone or bring the titanium card. It gives a more professional feel than a regular plastic card, but looks aren’t everything. Apple’s decision to avoid fees can move the tide in its favor. The max credit limit of $40,000 isn’t as high as an The Platinum Card® from American Express, but it is higher than the Tomo Credit Card. If you get an Apple or American Express card, you will still have to go through a hard credit check. Tomo Credit Cardholders get to avoid this inconvenience.
FAQs
Does a Tomo Credit Card improve your credit score?
Tomo reports your credit card activity to all three credit bureaus. If you stay on top of your credit card payments and keep a low balance, a Tomo Credit Card can improve your score.
What happens if you have a balance at the end of the billing cycle?
If you have a balance on your Tomo card at the end of the billing cycle, Tomo will temporarily freeze your card until you repay the balance. Tomo can use funds in your linked bank account to make credit card payments seamless.
Will applying for a Tomo Credit Card hurt my credit score?
Your credit score will not take a hit if you apply for a Tomo Credit Card. Unlike most credit card solutions, Tomo does not run a hard credit check on its applicants.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
The bottom line
Tomo makes credit building more accessible to people who normally couldn’t get a credit card or loan. You don’t need any credit history to get a card, and you can get started with Tomo even if you have bad credit. Tomo’s major strength is how easy it is to get a card. Your credit limit depends on your finances, and you may get a higher credit limit with another issuer.
When you look beyond Tomo’s accessibility, the company has additional perks. You don’t have to worry about hard credit checks, fees, or interest. Most credit card companies have all three inconveniences waiting for their cardholders. Some people may not like that you cannot carry over a balance from the previous billing cycle. You must pay the balance in full each month or have your card temporarily frozen until you pay the difference. Tomo has a seven-day auto-pay feature and can tap into your connected bank account to help pay your balance in full before the end of each billing cycle.
Tomo is an excellent credit card for beginners. Your payment activity will be reported to all three major credit bureaus and can help you qualify for more financial products in the future.
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Writer
Marc Guberti is a business freelance writer who specializes in personal finance, digital marketing, and entrepreneurship. His award-winning book "Content Marketing Secrets" teaches readers how to create, promote and optimize content for growth and revenue. Marc also hosts the "Breakthrough Success Podcast," where listeners learn how to master content marketing and get more clients.
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