June 23, 2024

The bank card business is filled with premium and reward playing cards, with few choices present for individuals with poor or no credit score. Typically, for those who don’t have a wholesome credit score historical past, you possibly can neglect getting a bank card and the chance to unfold out funds on purchases. The Tomo Credit score Card goals to assist change that.

Not like most bank cards, the Tomo card doesn’t carry out a credit score test as a part of its approval course of. There’s additionally no APR—although different charges might apply. On this overview, we are going to 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 realize 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 authorised. 

Furthermore, as a result of you possibly can’t carry a stability on the cardboard from one month to the subsequent, no curiosity is charged. This makes it a helpful resolution 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

Consists of 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 finest for individuals seeking to construct credit score or set up new credit score. It’s pretty simple 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 authorised for this card as a result of TomoCredit, the corporate that points it, doesn’t carry out a credit score test. As an alternative, it makes use of various knowledge within the approval course of, corresponding to info out of your checking account. This implies you could hyperlink your checking account to use. Nonetheless, as a result of there isn’t any credit score test, there will probably be no impression in your credit score rating.

Individuals who can present constructive developments with their financial institution accounts can have a greater likelihood of approval. As an example, a wholesome, secure revenue will enhance your approval odds.

Rewards Construction

The Tomo card provided 1% money again previously, however that’s now not true. In the present day, the additional advantages cardholders obtain are via World Elite Mastercard, which we are going to focus on within the subsequent part.

Extra Hidden Perks

Being a part of the Mastercard community means the Tomo Credit score Card has some additional 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 need to use to pay to your subsequent journey.
  • ShopRunner membership. Free ShopRunner membership, which affords free two-day transport and free returns at numerous totally different shops, together with Beneath Armour, Cole Haan, and Bloomingdale’s.
  • Fandango reductions. Get $5 off your subsequent buy once 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 gained’t be held accountable if somebody makes an unauthorized buy together with your card.
  • World baggage help. Help with baggage from wherever on the earth.

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 possibly can’t carry a stability. However those that pay their card off each month wouldn’t sometimes incur curiosity expenses anyway. And with many bank cards paying money again today, 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 yr—simply to make use of the cardboard. That’s a tricky capsule 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 alternate options don’t cost month-to-month or annual charges, and it could be good to see Tomo Credit score comply with swimsuit.

Options to the Tomo Credit score Card

The underside line

The Tomo Credit score Card goals to be totally different in a crowded discipline of premium, money again, and journey rewards playing cards. As an alternative of specializing in rewards, its aim is to assist the underserved construct credit score. The Tomo card now 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 choice for individuals who have struggled to realize approval for bank cards previously.

Regularly requested questions (FAQs)

Cost card vs normal bank card?

The Tomo card works extra like a cost card than a normal bank card. It’s because, whereas it doesn’t cost curiosity, you could pay the cardboard in full each billing cycle. For those who don’t, your account will probably be frozen till the cardboard is paid off. To assist preserve your utilization low, you possibly can arrange weekly automated funds.

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

The Tomo Credit score Card doesn’t test your credit score, so no arduous credit score pull is concerned. As an alternative, you could hyperlink your checking account, which is a think about Tomo’s approval resolution.

Is the Tomo Credit score Card secure?

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

Is Tomo Credit score a official firm?

Sure. Tomo Credit score relies in San Francisco and was constructed by immigrant founders who struggled to get bank cards as international 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 of secured or unsecured?

The Tomo Credit score Card is an unsecured bank card. Nonetheless, not like conventional bank cards, it doesn’t require a credit score test 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 includes evaluating your banking habits.

The data offered right here is created independently from the TIME editorial employees. To be taught extra, see our About web page.

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