July 20, 2024
Tomo Credit score Card Evaluation 2023

The bank card business is stuffed with premium and reward playing cards, with few choices current for folks with poor or no credit score. Usually, for those who don’t have a wholesome credit score historical past, you may overlook 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 could 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 superb selection for folks struggling to achieve mainstream bank card approval. As an alternative of counting on credit score scores, it makes use of an algorithmic strategy to find out whether or not somebody needs to be authorized. 

Furthermore, as a result of you may’t carry a steadiness on the cardboard from one month to the subsequent, no curiosity is charged. This makes it a helpful resolution for newbies getting used to having a bank card and managing and constructing credit score.

TOMO Credit score Card Evaluation Abstract: Execs & Cons

Doesn’t use credit score scores to approve purposes

Membership price is required

Purchases don’t earn money again

Contains a number of reductions, credit, and different perks

Some rivals could have higher perks

Who’s the cardboard for?

The Tomo Credit score Card is finest for folks trying to construct credit score or set up new credit score. It’s pretty simple to qualify. You may not 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 test. As an alternative, it makes use of various knowledge within the approval course of, equivalent to info out of your checking account. This implies you should hyperlink your checking account to use. Nevertheless, as a result of there isn’t a credit score test, there will likely be no influence in your credit score rating.

Individuals who can present optimistic tendencies with their financial institution accounts may have a greater likelihood of approval. As an example, a wholesome, secure earnings will improve your approval odds.

Rewards Construction

The Tomo card provided 1% money again prior to now, however that’s now not true. Right now, the additional advantages cardholders obtain are by way of World Elite Mastercard, which we are going to talk about 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 embody:

  • 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 use to pay on your subsequent journey.
  • ShopRunner membership. Free ShopRunner membership, which gives free two-day delivery 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 whenever 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 are misplaced or stolen.
  • Zero legal responsibility. You received’t be held accountable if somebody makes an unauthorized buy together with your card.
  • World baggage help. Help with baggage from anyplace on the earth.

What may very well be improved

The elimination 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 may’t carry a steadiness. However those that pay their card off each month wouldn’t usually incur curiosity expenses anyway. And with many bank cards paying money again nowadays, it could be good if the Tomo Credit score Card did the identical.

The opposite main space of enchancment is the membership price. Cardmembers should pay $2.99 per thirty days—or $35.88 per 12 months—simply to make use of the cardboard. That’s a troublesome tablet to swallow, particularly for the reason that Tomo Credit score Card is marketed to these with no credit score or who wish 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 observe go well with.

Alternate options to the Tomo Credit score Card

The underside line

The Tomo Credit score Card goals to be completely 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 consists of money again, although it nonetheless comes with a number of reductions and perks through World Elite Mastercard. General, it’s a stable choice for many who have struggled to achieve approval for bank cards prior to now.

Steadily requested questions (FAQs)

Cost card vs normal bank card?

The Tomo card works extra like a cost card than a typical bank card. It’s because, whereas it doesn’t cost curiosity, you should pay the cardboard in full each billing cycle. For those who don’t, your account will likely be frozen till the cardboard is paid off. To assist maintain your utilization low, you may 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 should hyperlink your checking account, which is a consider Tomo’s approval choice.

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 consists of zero legal responsibility, that means you received’t be accountable if somebody makes an unauthorized buy with the cardboard. There are additionally id safety specialists obtainable 24/7/365, and you’ll 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 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-about secured or unsecured?

The Tomo Credit score Card is an unsecured bank card. Nevertheless, 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 study extra, see our About web page.