Tomo Credit Card Review 2024
The Tomo Credit Card is revolutionizing the credit card industry by offering opportunities to individuals with poor or no credit history.
A Fresh Take on Credit Cards
The credit card industry is saturated with premium and reward cards, leaving a gap for those with poor or no credit. The Tomo Credit Card aims to fill this void by providing a solution tailored to individuals who traditionally struggle to gain credit approval.
No Credit Check Needed
Unlike most credit cards, the Tomo Credit Card does not perform a credit check during the approval process. This feature is particularly beneficial for people with little or no credit history, as well as those with poor credit scores. Instead, the Tomo Card uses an algorithmic approach that relies on alternative data, such as your bank account information, to determine eligibility.
No Interest Charges
Another standout feature of the Tomo Credit Card is the absence of APR (Annual Percentage Rate). Cardholders are not charged interest because the card does not allow you to carry a balance from one month to the next. This can be a significant advantage for individuals new to managing credit, as it helps prevent debt accumulation.
Pros and Cons of the Tomo Credit Card
Pros:
- No Credit Check: Approval process does not involve a credit check, making it accessible for those with poor or no credit history.
- No Interest Charges: You won’t pay interest since the card requires full payment each month.
- Additional Perks: Includes various discounts, credits, and other perks through the World Elite Mastercard program.
Cons:
- Monthly Membership Fee: A fee of $2.99 per month is required, totaling $35.88 annually.
- No Cash Back Rewards: The card no longer offers cash back on purchases.
- Competition: Some alternative credit cards may offer better perks and no membership fees.
Comparing Alternatives
| Card | APR | Annual Fees | Credit Score |
|---|---|---|---|
| Mission Lane® Visa Credit Card | 29.99-33.99% Variable | $0-59 | Limited, Fair, Poor, Bad |
| Chime Secured Credit Builder Visa® Credit Card | N/A | $0 | Average/Fair, Poor, None/Limited History |
| OpenSky® Secured Visa® Credit Card | 25.64% Variable | $35 | Fair, Poor, Bad, No Credit |
Who Should Consider the Tomo Credit Card?
The Tomo Credit Card is best suited for individuals looking to build or establish credit. Since it doesn’t require a credit check, it’s an excellent option for those who have been denied credit in the past or have no credit history. However, applicants must link their bank account to the card, as this data is used to assess eligibility.
Ideal Candidates:
- Individuals with Poor or No Credit: The approval process does not rely on credit scores, offering a chance for those with poor or no credit history.
- People Without a Social Security Number: It is possible to apply without an SSN or ITIN, making it accessible for immigrants and newcomers to the U.S.
- Beginners in Credit Management: The card’s structure helps individuals learn to manage credit responsibly without the risk of incurring interest charges.
Rewards and Perks
Initially, the Tomo Credit Card offered 1% cash back on purchases. While this feature has been discontinued, cardholders still enjoy several benefits through the World Elite Mastercard program:
Mastercard Benefits:
- DoorDash Discounts: Three months of free DashPass membership, including free delivery and $5 off your first order each month.
- Lyft Credits: Earn a $5 credit after taking three Lyft rides.
- ShopRunner Membership: Free two-day shipping and free returns at various stores.
- Fandango Discounts: $5 off your next purchase when you spend $20 on movie tickets or streaming.
- World Elite Concierge: Access to 24/7 concierge service for various tasks.
- Cellphone Insurance: Protection for lost or stolen cellphones.
- Zero Liability: No responsibility for unauthorized purchases.
- Global Luggage Assistance: Help with luggage from anywhere in the world.
Areas for Improvement
While the Tomo Credit Card has several appealing features, there are areas where it could improve:
- Reintroduction of Cash Back: The removal of 1% cash back is a significant drawback. Reinstating this feature would enhance the card’s attractiveness.
- Elimination of Membership Fees: The $2.99 monthly fee can be burdensome, especially for individuals with limited financial resources. Removing or reducing this fee would make the card more competitive.
- Expanded Rewards Program: Adding more robust rewards or cash back options would make the card more appealing to a broader audience.
The Bottom Line
The Tomo Credit Card is a unique offering in the crowded credit card market. It stands out by not requiring a credit check and charging no interest, making it an attractive option for individuals with poor or no credit history. While the card has some drawbacks, such as the monthly membership fee and lack of cash back rewards, it remains a solid choice for those looking to build or establish credit.
Frequently Asked Questions (FAQs)
What is the difference between a charge card and a standard credit card?
The Tomo Credit Card functions more like a charge card than a standard credit card. It requires you to pay off your balance in full every month, which means no interest is charged. If you don’t pay your balance in full, your account will be frozen until the card is paid off. This feature helps prevent debt accumulation and encourages responsible credit management.
Does the Tomo Credit Card perform a hard credit pull?
No, the Tomo Credit Card does not perform a hard credit pull. Instead, it uses alternative data, such as information from your linked bank account, to assess eligibility. This means there is no impact on your credit score during the application process.
Is the Tomo Credit Card safe?
Yes, the Tomo Credit Card includes several safety features through the World Elite Mastercard program. These include zero liability for unauthorized purchases, identity protection specialists available 24/7, and alerts for suspicious activity related to your card.
Is Tomo Credit a legitimate company?
Yes, Tomo Credit is a legitimate company based in San Francisco. It was founded by immigrants who struggled to get credit cards as foreign nationals and is dedicated to creating a smart credit card that doesn’t require a credit score for approval.
Is the Tomo Credit Card secured or unsecured?
The Tomo Credit Card is an unsecured credit card. Unlike traditional secured cards, it does not require a security deposit. Instead, it uses a proprietary model to evaluate your creditworthiness based on your banking habits and other data points.
Final Thoughts
The Tomo Credit Card is a refreshing alternative for individuals with poor or no credit history. Its unique approach to credit approval, combined with no interest charges and valuable perks, makes it a worthy consideration for those looking to build or establish credit. However, potential cardholders should weigh the benefits against the monthly membership fee and lack of cash back rewards to determine if it aligns with their financial goals.
