With the help of the Tomo Credit Card, you will be able to build credit and stay out of debt. Furthermore, you will not have to worry about credit checks or interest. However, there is a monthly fee for the services, and you will need to link your bank account to get the card. This card is a great option for people with poor credit or no credit. Hence, if you have a FICO score of 629 or below, you can try the Tomo Card.
In this article, you will learn about the Tomo Credit Card and find out how it works. Furthermore, you will also learn about the major features of the card, along with the major pros and cons of using the car, especially if you have poor credit. Finally, we will share with you some of the major benefits of the Tomo Credit Card. Hence, to learn more about this new credit option, read on through to the end of the article.
What is The Tomo Credit Card?
According to USAToday.com,
“Building credit from scratch can be challenging, and many credit cards require existing history to get approved. The Tomo Credit Card offers a solution to this problem by skipping the credit check when you apply. And while the card no longer offers rewards to new cardholders on everyday purchases and charges a monthly fee, you can enjoy some benefits while establishing a positive credit profile.”
Here are some of the major highlights of the Tomo Credit Card:
- You will get a credit limit of up to $10,000
- There are no APR charges
- There are expedited autopay options – weekly, bi-weekly, monthly
- People new to the United States can also apply (no SSN and TIN required)
- No security deposits
- No credit checks
What Are The Pros And Cons Of Tomo Credit Card?
According to the Forbes Advisor,
“One of just a handful of credit cards available to those with limited or no credit history, the Tomo Credit Card, which is issued on the Mastercard network, uses banking and other financial metrics to determine approval and credit limit. But the approval process can be slow and you’ll have to agree to connect to your bank account as part of the application.”
The following are some of the major pros and cons of the Tomo Credit Card:
Here are the pros of Tomo Credit Card:
- There are no credit checks during the application
- There are no APR charges (interests)
Here are the cons of Tomo Credit Card:
- You cannot easily link all financial institutions
- There are no rewards on transactions through the credit card
- There are fewer benefits than many other credit card options
What Are The Benefits Of Tomo Credit Card?
One of the major benefits of the Tomo Credit card is that getting it is really easy. That is why it is a great option for people with poor credit scores or someone with no credit score. Traditional issuers of credit cards will do a hard inquiry on you before they review your application. However, the Tomo Credit Card providers will not run a credit check for you to reap the benefits of the card.
According to NerdWallet.com,
“TomoCredit never runs a credit check. Instead, the company’s proprietary technology can weigh many data points, a key few being your income (or income potential) and your account balances. The bank that issues the card, New York-based Community Federal Savings Bank, uses this data to determine whether you’re a good candidate for the card.”
Here are the major benefits of the Tomo Credit Card, of which you must be fully aware:
1. No Credit Checks
When you apply for a Tomo Credit Card, there are no credit checks. Hence, there shall be no impact on your credit score as well. To determine your eligibility for the card, Tomo checks the number of data points, like how much money you have, how do you manage them, etc.
2. No Interest Rates (APR)
You will not need to pay any interest to avail the services of the Tomo Credit Card. This is because, unlike any other credit card options, Tomo does not allow you to carry a balance from one month to another. Hence, it is practically impossible for the debt to rack up.
Payment Is Through A Monthly Fee
There are no annual fees for using the Tomo Credit Card. However, there is one fee on a monthly basis. The monthly payment is $2.99 per month ($35.88 per year). Furthermore, you will get a credit limit of up to $10,000. Once you make the first payment on time, your credit limit might increase.
4. The Service Offers Various Perks
Earlier, the card used to offer 1% cashback on its purchases, but it stopped now. Although there are no rewards anymore, you will get access to many perks with every transaction on the card. Since the Tomo Credit Card runs on Mastercard, most of the perks are available from here.
Even if you are new to the United States, you are still eligible to get the Tomo Credit Card. You can apply for the card by providing other official information when you do not have a Social Security Number or your Individual TIN. This makes the Tomo Card one of its kind.
Hope this article was helpful for you in getting a better idea of what Tomo Credit Card offers and how it works to offer you credit. One of the best things about this card is that you will not need to have a good credit score to avail of the services of the card. This is because it does not carry out a credit check but takes a monthly fee from you by linking your bank account.
Since it is a charge card, you will not have to pay any interest charges. However, you will still need to pay in full for every billing cycle if you do not want your account to be frozen. Do you have any more information about the workings of the Tomo Credit Card? Share them with us in the comments section below.