December 6, 2023

The bank card trade is stuffed with premium and reward playing cards, with few choices present for individuals with poor or no credit score. Typically, in the event you don’t have a wholesome credit score historical past, you’ll be able to neglect getting a bank card and the chance to unfold out funds on purchases. The Tomo Credit score Card goals to assist change that.

In contrast to most bank cards, the Tomo card doesn’t carry out a credit score examine as a part of its approval course of. There’s additionally no APR—although different charges might apply. On this overview, we’ll analyze the Tomo Credit score Card and search to find out whether or not its options, charges, and perks make it a worthy addition to your pockets.

Time’s Take

The Tomo Credit score Card is a good selection for individuals struggling to achieve mainstream bank card approval. As an alternative of counting on credit score scores, it makes use of an algorithmic method to find out whether or not somebody must be authorized. 

Furthermore, as a result of you’ll be able to’t carry a stability on the cardboard from one month to the following, no curiosity is charged. This makes it a helpful answer for inexperienced persons getting used to having a bank card and managing and constructing credit score.

TOMO Credit score Card Evaluate Abstract: Professionals & Cons

Doesn’t use credit score scores to approve functions

Membership payment is required

Purchases don’t earn money again

Contains a number of reductions, credit, and different perks

Some opponents might have higher perks

Who’s the cardboard for?

The Tomo Credit score Card is greatest for individuals trying to construct credit score or set up new credit score. It’s pretty straightforward to qualify. You won’t even want a Social Safety quantity (SSN) or Particular person Taxpayer Identification Quantity (ITIN).

Folks with little, poor, or no credit score have a shot at being authorized for this card as a result of TomoCredit, the corporate that points it, doesn’t carry out a credit score examine. As an alternative, it makes use of different information within the approval course of, comparable to data out of your checking account. This implies you have to hyperlink your checking account to use. Nevertheless, as a result of there isn’t any credit score examine, there can be no influence in your credit score rating.

Individuals who can present optimistic traits with their financial institution accounts may have a greater probability of approval. For example, a wholesome, secure revenue will enhance your approval odds.

Rewards Construction

The Tomo card provided 1% money again previously, however that’s not true. At this time, the additional advantages cardholders obtain are via World Elite Mastercard, which we’ll focus on within the subsequent part.

Extra Hidden Perks

Being a part of the Mastercard community means the Tomo Credit score Card has some further perks. Advantages provided by Mastercard embrace:

  • DoorDash reductions. Get three months of free DashPass membership, which incorporates free DoorDash supply, and $5 off your first order each month.
  • Lyft credit. Take three Lyft rides and also you’ll qualify for a $5 credit score that you should utilize to pay on your subsequent trip.
  • ShopRunner membership. Free ShopRunner membership, which affords free two-day transport and free returns at varied completely different shops, together with Below Armour, Cole Haan, and Bloomingdale’s.
  • Fandango reductions. Get $5 off your subsequent buy while you spend $20 on film tickets or streaming.
  • World Elite concierge. Entry to a 24/7 concierge service that helps you with duties like discovering tickets to a sold-out present.
  • Cellphone insurance coverage. Safety for cellphones which can be misplaced or stolen.
  • Zero legal responsibility. You received’t be held accountable if somebody makes an unauthorized buy along with your card.
  • International baggage help. Help with baggage from anyplace on the planet.

What may very well be improved

The removing of 1% money again is unlucky, and it could be good to see it return. After all, no APR is charged on this card as a result of you’ll be able to’t carry a stability. However those that pay their card off each month wouldn’t usually incur curiosity fees anyway. And with many bank cards paying money again as of late, it could be good if the Tomo Credit score Card did the identical.

The opposite main space of enchancment is the membership payment. Cardmembers should pay $2.99 monthly—or $35.88 per 12 months—simply to make use of the cardboard. That’s a tricky tablet to swallow, particularly because the Tomo Credit score Card is marketed to these with no credit score or who need to construct their credit score. Some options don’t cost month-to-month or annual charges, and it could be good to see Tomo Credit score comply with go well with.

Options to the Tomo Credit score Card

The underside line

The Tomo Credit score Card goals to be completely different in a crowded area of premium, money again, and journey rewards playing cards. As an alternative of specializing in rewards, its purpose is to assist the underserved construct credit score. The Tomo card not contains money again, although it nonetheless comes with a number of reductions and perks by way of World Elite Mastercard. General, it’s a stable possibility for individuals who have struggled to achieve approval for bank cards previously.

Often requested questions (FAQs)

Cost card vs customary bank card?

The Tomo card works extra like a cost card than an ordinary bank card. It is because, whereas it doesn’t cost curiosity, you have to pay the cardboard in full each billing cycle. When you don’t, your account can be frozen till the cardboard is paid off. To assist maintain your utilization low, you’ll be able to arrange weekly computerized funds.

Does the Tomo Credit score Card do a tough credit score pull?

The Tomo Credit score Card doesn’t examine your credit score, so no onerous credit score pull is concerned. As an alternative, you have to hyperlink your checking account, which is a consider Tomo’s approval determination.

Is the Tomo Credit score Card secure?

The Tomo Credit score Card retains you secure with its World Elite Mastercard advantages. For example, it contains zero legal responsibility, that means you received’t be accountable if somebody makes an unauthorized buy with the cardboard. There are additionally identification safety specialists accessible 24/7/365, and you can be alerted of any suspicious exercise associated to your card.

Is Tomo Credit score a professional firm?

Sure. Tomo Credit score relies in San Francisco and was constructed by immigrant founders who struggled to get bank cards as overseas nationals. The corporate is devoted to constructing the neatest card that doesn’t require a credit score rating for approval.

Is the Tomo Credit score Card thought-about secured or unsecured?

The Tomo Credit score Card is an unsecured bank card. Nevertheless, in contrast to conventional bank cards, it doesn’t require a credit score examine or a credit score pull. As an alternative, Tomo Credit score makes use of a proprietary mannequin to evaluate your creditworthiness. A part of this course of entails evaluating your banking habits.

The knowledge introduced right here is created independently from the TIME editorial workers. To be taught extra, see our About web page.

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