Tomo Credit Card Review: Earn Cash Back & Accumulate Credit

If you have bad credit or no credit history, the Tomo Credit Card offers a unique approach to improving your credit. Unlike a typical credit card with an interest rate on any balances you carry, Tomo requires you to make weekly payments through an automatic payment system that prevents any balances from being charged to the card. And you don’t need a credit history to be approved; instead, your approval is based on the banking information, income, and other details of your application.

It’s an accessible card that can help you build credit if you’re just starting out, but you’ll want to make sure you practice responsible credit habits that you can use to continue using your credit and credit card in the future.

In one look

• Alternative approval process; instead of a credit check, Tomo assesses your financial history using the information in your application
• 1% cash back on all purchases
• Credit limit between $ 100 and $ 10,000 (also based on your financial information)
• No APR; instead, you should go for a weekly automatic payment schedule that prevents you from carrying a balance
• If you don’t have the funds to pay a balance, your account will be automatically blocked
• Payments reported to all three credit bureaus
• No charges

Additional card details

Most of the value of the Tomo Card is its easy access to building credit, but don’t expect many additional perks. It’s a Mastercard, which means you can use it anywhere Mastercard is accepted. There are also no cardholder fees, and you’ll get 1% cash back on every purchase.

The biggest advantage of the Tomo card is its alternative approval process. Applying for a Tomo credit card will not affect your credit score, and you can even get approved without a credit score.

Since a credit score is not required for eligibility, you will need to include other factors in your application, such as your income and your linked bank account information. Eligible accounts include checking, savings, and even investment accounts. Based on this information you provide, Tomo’s algorithm will determine if you qualify and your credit limit, which can be up to $ 10,000. By linking more bank accounts (and therefore providing more financial information), you are more likely to get a higher credit limit.

Although the Tomo Card is a very accessible option, it still requires the responsibility of maintaining your financial well-being while using it, just like with any other credit card. If you don’t have the funds to cover an automatic weekly payment, your account will be blocked until you can pay it off in full. If this happens continuously, you risk having your card closed and sent to a collection agency, which could negatively impact your credit score.

Should you get this card?

If you’ve just learned how to create credit, the Tomo Card can be a great place to start – and more accessible than many other credit cards. This card is also a good option if you are not a U.S. citizen or do not yet have a credit history in the United States and are looking to start building your credit.

Since the Tomo card is new, you may face a waiting period after submitting a request for pre-approval. Some users have also encountered issues linking bank accounts to their apps. Check the Tomo Card website for a list of these establishments before you apply to make sure that your bank account will not affect your ability to be approved. While not complete ruptures, these drawbacks can be a downside when choosing a card from a non-traditional issuer.

If you have bad credit or no credit, the Tomo Card Alternative Approval Process can help you avoid any credit checks that can potentially have a negative impact on your credit score. But keep in mind that there are other cards, such as the Petal 2 Visa® credit card, that offer similar options for people without great credit. The Petal card still checks your credit score, but it also uses financial information similar to Tomo’s to determine your approval and offers pre-approval that will not affect your credit score. Secured credit cards also offer an accessible entry point into building credit for people with bad or no credit history.

Still, Tomo’s automatic payment schedule and lack of an option to keep a balance sets it apart from other card options. If you are new to the world of credit and are not used to regular monthly payments, then Tomo might be a safer option to start. Just make sure you can consistently cover your weekly payments – if your account is frozen or closed, it could negatively impact your credit score.

How to use the Tomo credit card

The Tomo credit card can be a great start to boosting your credit, but if you are considering upgrading to more lucrative rewards cards in the future, start making good credit habits now, like maintaining your credit usage. at a low level and not spending more than you can afford.

While you cannot keep a balance with the Tomo card, if you decide to switch to a more traditional credit card in the future, you will be responsible for making monthly payments (and earning interest on the balances. remaining). Stay on top of what you’re spending now to set yourself up for success with other cards down the line.

In the meantime, you can use these habits to build credit with the Tomo credit card. Tomo reports to the three major credit bureaus and the weekly automatic payment system can help you build credit fast; at the end of the seven days, your balance will be automatically withdrawn from your bank account. This automatic payment system has limited flexibility; the schedule is set to start every Monday and cannot be changed.

You will also earn 1% cash back on every purchase you make. While this is small compared to other cash back credit cards, it is more than what many starter credit cards offer. To start making money, use your Tomo Card for everyday expenses that you would usually do with a debit card, like groceries, gas, and even bills.

Just know that you are approaching your credit limit – spending too much of your available credit can increase your credit usage and make it difficult to increase your credit score. And if you overspend and are unable to pay off your Tomo Card balance when due, your account will be frozen until you have paid in full, which could ultimately lead to the closure of your account. your account by Tomo. Account closure affects several factors that go into your credit rating, including credit mix and credit utilization rate, which could wipe out any credit progression you make.

Tomo credit card compared to other cards

Final result

The Tomo credit card is most beneficial for people with no credit history who are ready to build their credit. No fees, 1% cash back, and no risk of earning interest, this card can help you build not only a good credit rating, but also the habits to maintain it.

Frequently Asked Questions