Tomo Credit Card – Everything You Need To Know
If you’ve been checking your credit options lately, you’ve probably heard a thing or two about the Tomo credit card. Word is that it is a way you can access credit without having a credit history. For this reason, the Tomo credit card can easily be availed to first-time borrowers. Rather than using credit report ratings or Fico, like other credit cards, Tomo is based on cash flow, which means that you’d be eligible for a Tomo credit card as long as you have a consistent cash flow.
The CEO, Kristy Kim, built the company inspired by her frustrations as an immigrant who didn’t have a credit score. She was allegedly rejected 5 times when requesting an auto loan and had to buy her first car in cash.
In this article, we shall take a look at what exactly Tomo credit card entails, covering all you need to know about it.
How Does Tomo Credit Card Work?
Tomo credit card works through a debit card model. Using its proprietary underwriting system, it is able to offer high-limit credit cards, which, in turn, assist people in building their credit scores. The system works by analyzing over 50,000 data attributes like monthly income, stock portfolio, spending patterns, and saving. It is issued by the community federal savings bank, which is a member of the Federal Deposit Insurance Corporation (FDIC).
Users of the card make payments through a seven-day payment schedule, with no APR or fees applied. A client would get approved after finishing up a quick application process using the TomoCredit mobile app or through their online website. On average, after approval, users would get a credit limit of about $100 to $10,000. To increase your credit limit as a borrower, you can link your investment accounts.
Who Can Use The Tomo Credit Card?
Although popular among the immigrant demographic, the card is really for anyone who has a thin file or no file regarding credit history. According to TechCrunch, Tomo aims to help young consumers build healthier financial habits without fears of overspending or missing payments like they normally would. The creators instead leverage other data sources such as cash flow data to underwrite its clients instead of credit history.
Another thing that sets Tomo apart from other credit cards is that instead of charging fees on borrowers who make late payments, they make their money as cardholders spend.
Tomo Credit Overview
As it stands, Tomo Credit has already preapproved more than 300,000 customers. It further plans to issue about 500,000 more cards by the end of the year. Their primary goal is to create an open credit zone aiding a number of underserved families and individuals.
According to BusinessWire, It now works together with Finicity and MasterCard to offer more exclusive products for its customers. It recently launched the Tomo Credit MasterCard, which is a higher limit credit card, which doesn’t need Hard or soft inquiries or FICO to apply for.
At the credit care company our mission is to help our clients achieve the best credit score possible. We also help repair and delete any false information in your credit report and ultimately increase your FICO score. For more information about Tomo or anything credit related, feel free to contact us today.
