Tag: Credit Cards

  • Fintech, making changes together

    2023, the year Tomo learned how to “ride”with the waves

    It has been 5 years since Tomo launched and we continue to surf the unpredicted waves of fintech to ultimately continue our mission of building a better tomorrow. I’m not saying it was easy, but we’re proud of what we’ve achieved around credit building and credit repair.

    When we launched our first product, TomoCard, we received an overwhelming amount of interest while improving the lives of our customers.

    • 3.5 Millions users
    • Users’ credit scores increasing by 29 points on average*
    • Over 200,000 total customers answered that they saw positive changes in their credit report within the first 6 month period. And Tomo helped them feel more confident about their personal finance.
    • Able to offer personalized insights on cash flow and its impact on credit health
    • Leverage our proprietary technology to give users personalized credit building tips

    We refined our product over the years, but all in service of continuing to fulfill our mission for the long term.

    We remain quick and agile as we launched our second product, TomoBoost, a credit repair service that can boost credit scores intelligently using real time data. We are continually improving our product and have rich insights to help our customers.

    • Since 2019, we gathered 18 million verifiable bank accounts data based on users’ consents
    • Customers want Tomo to help them with two topics which we are building our product around. (1)Learn more about their personal finance, especially about personal credit (2)Get instant insights of their cash flow in and out, so they can better manage their cash flow.

    That brings us to now.

    2023 was a challenging year for fintech startups, but also presented upside opportunities for those who figured out how to adapt quickly. Let me explain. First off, a series of unimaginable events happened in the beginning of 2023:

    1. Rate Increase: Lending startups struggled as the cost of capital doubled, making it challenging to maintain margins. For many fintech companies, cash is their product, and when the cost of goods (cost of capital) goes up too high, lending fintech startups simply cannot survive. It seemed like only big banks could weather this storm, as they do have billions of customer deposits that fintechs simply don’t have. (below is the 2022 FDIC datapoint).

    Source: Dec. 31, 2022, data from the FDIC.

    2. Riding the shifts in Consumer Trends: With the rate increase, consumers became more vigilant with managing their personal finance (both personal credit and spending in general). If you think about it, back in 2021, everyone got good rates — with or without a good credit score. Now, with a score below 650, you are simply in trouble. This made credit building popular, with high user demand- Tomo was able to ride the wave at the perfect timing. The key here was listening to our customers who have been with us since 2019 and learning what they liked or disliked about Tomo.

    Also, we noticed that the credit building space is ripe for innovation; the space has been lacking new data driven products in the past decades. With huge consumer demand, Tomo launched in 2019 with our own proprietary technology to give users personalized credit building tips.

    3. Startups, by nature, are resilient. We are not the smartest or the wealthiest, but oh boy, we are resilient. That means many founders figured out — or had to figure out. When founders are faced with this type of market events that are out of their control, they are forced to focus on “internal data and IP.” For example, for Tomo, we built our own proprietary cash flow data in the past 5 years, and we gathered over millions of bank account data (checking accounts, savings accounts, investment accounts, 401k, etc.). We used the cash flow data to build “TomoScore,” an AI-powered cash flow management solution. This allowed us to help our customers manage their cash flow easier and manage their debt/credit better. This became a big hit as it aligned with the customer trends of being vigilant with money

    Closing thoughts:

    I first landed in the U.S. as a student without a credit score, without a U.S. bank account. I am beyond grateful that in 2024, I get to continue to challenge the status quo with an amazing, world class team at Tomo. Many people say that good intentions are not enough because it seems too easy, but our team at Tomo are “doers” with good intentions committed to building a better tomorrow. We, at Tomo, deeply thank each and every one of our supporters. It is simply impossible to challenge the status quo in finance unless it is done with careful, well-thought out collaborations. We are in this together.

    ** Average outcome for customers who opened a Tomo account in Q1 2022, starting VantageScore 3.0 under 600, who made on-time payments. Other factors, including activities at other lenders may impact results. Tomo reports both positive and negative on-time payments history based on their bank data.

  • Shop Smart Online: 7 to Use Your Credit Card Safely

    Have you ever been online shopping and all of a sudden a pop-up message blocks your whole screen with a message like, “A virus has been detected on your computer. Please click on the link to remove the virus from your computer,” or something of that nature?

    Well, you’re not alone. Millions of people every day are sent phishing emails or scam alerts, making online shopping one of the most prevalent places for your financial information to be compromised.

    Here are 7 tips on how you can use your credit card safely for online shopping:

    1. Shop on trusted websites. Make sure to check the site has a lock to the left of the website URL.
    2. Avoid using public Wi-Fi. Public Wi-Fi is often unsecured and very vulnerable to hackers.
    3. Update your passwords. If the website you are shopping on asks for you to create a password for your account, make sure to create a password that is strong and unique. Don’t use a password that you use for your important accounts (i.e. financial accounts).
    4. Be alert for phishing scams. Make sure you pay attention to the details. If you receive “fishy” emails or emails from unfamiliar people requesting your attention and action,, do not respond with any personal information or click on any links they send you. If your credit card company offers fraud alerts, make sure they are turned on.
    5. Monitor your accounts regularly. Log into your credit card accounts regularly and make sure to check there aren’t any suspicious or fraudulent activities. Make sure to report any fraudulent/suspicious activity to your provider immediately.
    6. Update anti-virus/computer software. Make sure you frequently update your computer’s software and any anti-virus software to prevent malware attacks.
    7. Use a credit card you designate to online purchases only. Try to also use a credit card that has your lowest credit line when making online purchases. That way, if you accidentally make a purchase from an unsecured or scam site, you limit yourself from fraudulent withdrawals.

    In conclusion, while online shopping can be an easy and convenient way to shop these days, you want to make sure you are aware of any potential risks you put your credit cards in. Some credit card companies, like TomoCredit, have a huge emphasis on credit card safety and send fraud alerts or allow you to lock your account from your phone yourself. This option allows users to be in control of the safety of their finances. Check with your credit card companies to see if they offer options like this for you!

  • 8 Tips to Maximize Your Tax Refund

    Tax season is here! The IRS just announced that Monday, 1/23/23, was the first day they would begin accepting and processing 2022 tax year returns. The deadline to file is 4/18/23, so save the date on your calendars! If you plan on making some big purchases with your refund, you might want to read on for some tips and tricks to help you get your biggest refund yet!

    Here are 8 tips that will help you maximize your tax refund:

    #1: Take advantage of an FSA account if your employer offers it

    As part of Tomo’s benefits, we offer all of our employee’s the option to contribute to an FSA account. An FSA account, or Flexible Spending Account, allows you to put money in an account for eligible FSA expenses. When you need to use your FSA dollars, the money is deducted automatically from your paycheck before taxes are taken out. You can save on average 30% by using pre-tax dollars to pay for eligible FSA expenses.

    #2: Donate to charity

    According to the IRA, you may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.

    #3: Claim credit for energy-efficient home improvements

    This credit offers a maximum value of $1,200 per year from 2023 through 2032 and can go toward investments like qualified energy efficiency improvements made to domestic residences (i.e. improvements towards qualified exterior windows, doors and skylights, and building envelope components).

    #4: Max out your IRA.

    IRAs are a great way to save towards your retirement while reducing your taxable income. Make sure the IRA account is a traditional IRA and not Roth. Roth IRA accounts are not tax deductible now, but traditional IRAs offer tax deductibility in the present.

    #5: Reconsider filing status if you are married

    Filing status is important because it determines your credit eligibility, filing requirements and standard deductions. If you and your spouse have similar or identical incomes, a marriage penalty could affect your tax return. Consult a tax professional if you are unsure if you should file jointly or separately.

    #6: Itemize deductions

    According to IRS, you may benefit from itemizing if any of the following circumstances apply to you:

    • You cannot use the standard deduction.
    • You racked up pricy uninsured medical and dental expenses.
    • You paid interest or taxes on your mortgage.
    • Your employee business expenses were unreimbursed.
    • You gave money to charities.

    #7: Start your tax preparation now to avoid delays!

    If your tax return is simple to prepare and you only have a w-2, it is better to get it done as soon as possible. The IRS processes over 100 million returns each year and can sometimes experience delays due to heavy incoming tax forms. Choosing a direct deposit method for your return may also be the best and quickest option.

    #8: If you are a gig worker, count your work as income

    If you are/were a delivery driver, Uber driver, or did any other work as an independent contractor, you must report your earnings and file your income on your tax return.

    We hope that this information was helpful for you to get your biggest refund yet! For more financial tips and tricks, be sure to subscribe to our Medium page and also check out our website www.tomocredit.com.

  • How this Startup is Making Credit Accessible to Everyone

    It’s 2023, but is there still structural racism in the credit card industry? In a survey from 5000 Americans, studies found that BIPOC individuals reported having the lowest or no credit score.

    Though the disadvantage for BIPOC folks has played a significant role in lack of financial education and literacy, this hasn’t stopped them from taking their personal finances into their own hands.

    Our credit card company, TomoCredit, aims to make credit accessible to everyone. We believe that all Americans deserve the right to credit and that no one should be discriminated against because of their race, status, age, etc.

    We are a startup based out of SF, CA, and our founder Kristy Kim, is a South Korean immigrant. Our team is also made of immigrants (90% of Tomo employees are immigrants/POC) and we built TomoCredit to solve our own acute pain points of not having credit history in the U.S.

    In addition to our diverse team, 95% of our TomoCredit customers are POC, which speaks to our unique understanding of just how different credit access for white Americans vs credit for everyone else works. To date, Tomo has helped over 3M people get access to credit they normally wouldn’t have had access to (with no fees or interest).

    If you are interested in learning more, please reach out to press@tomocredit.com

  • GenZ will spend $50 on a cup, but won’t pay off their high APR credit cards

    Many of you may have heard of the infamous “Stanley Cup/Tumbler” trending all over TikTok. Consumers that have fallen prey to this trend seem to be GenZ, many posting cup reviews all over the app. Although the tumblers do have pretty rave reviews and seem to do the job, the cost of the cup is pretty hefty. But with BNPL options, it’s easy for GenZ to spend their money on microtrends.

    What GenZ doesn’t understand is that the cup they thought was $50, is actually near $60 with interest fees. APR awareness is important, and it is definitely more important than a $50 cup you could probably buy off Amazon for $20 cheaper.

    High APR and interest rates are the culprits of many microtrends from BNPL purchases. It’s important that GenZ understand the repercussions of credit card debt and spending.

    TomoCredit, a credit card that has 0 interest/APR and virtually allows you to never carry a balance, wants GenZ and others to be aware of BNPL while shopping. Fees rack up quickly, and the last thing you want is to carry a balance you can’t pay.

    If you are interested in learning more, please reach out to press@tomocredit.com.

  • American credit card debt continues to climb while GenZ is unaware of APR repercussions

    According to Bankrate, 46% of credit card holders are currently carrying debt month-to-month due to inflation and paying for daily expenses. 50% of GenZ don’t know and don’t understand the APR linked to their debt. So what does this mean?

    With no real idea of when inflation will start to go down, many young adults are relying on their credit cards to make purchases. What many of them do not understand is how carrying a balance can affect their credit score and the impacts of interest rates on their balance.

    By carrying debt and not being able to pay back, people are racking up fees from the high interest rates and negatively impacting their credit scores. In a survey from Bankrate that asked which credit card feature is the best and most often used, 36% answered cash back rewards. Cashback is great, BUT, it can be more of a short-term strategy to pay down debt. Instead of thinking about immediate returns, young adults should start strategizing a plan for longer-term debt payoff, like choosing credit cards with 0 or low APR.

    Enter Tomo, 0% APR/interest credit card that doesn’t require credit history. The Tomo card, also known as GenZ’s favorite credit card, has gained popularity among young adults due to its 0 APR and ability for card holders to never carry a balance. This is the perfect card in 2023 as more and more Americans are leaning on credit cards to pay off daily expenses.

    For more information, please reach out to press@tomocredit.com.

  • How to Get a Perfect 850 Credit Score

    If you suffer from a low or (in many cases) no credit score, it may be quite difficult to achieve some of your personal financial goals. Some of these goals include: obtaining an auto loan, mortgage, or applying for any other types of loans.

    According to FICO’s most recent statistics, only 1.6% of 232 million U.S. consumers have a perfect credit score at 850. This feat may seem unachievable, but it isn’t impossible.

    We surveyed 100 people in San Francisco and asked them what their credit score is. Many answered in the mid-600s to 700 range, with a handful above 800 and some at a PERFECT 850.

    We asked those that were above 800 how they achieved this. The following are some tips and tricks they shared:

    1. Pay your bills on time and always pay over the minimum.
    2. Don’t max out your cards.
    3. Keep a low or 0 balance. Some companies, like TomoCredit, feature autopay, so you never have to worry about making a late payment. Tomo’s autopay triggers weekly, so you’ll also never keep a balance.
    4. Only spend on what you need, not what you want.
    5. Have a budget and stick to it. Seems simple, but can be difficult and challenging in practice.
    6. Create a strategy for your credit card usage — designate a credit card to the spending type. For example, if you have more than one credit card, use one for gas and groceries only and the other for major purchases.
    7. Don’t open too many accounts. Retail stores usually have people fall prey to their credit card programs and many tend to forget they signed up for the card until they receive a late payment notice in the mail.
    8. Understand your APR/interest rates. Know how much you are paying and what you will need to pay.
    9. Don’t close your credit card accounts. This factors into your FICO on credit card length history.
    10. Check your score for free. Experian, Transunion, Equifax all have annual free credit reports. Some of your current accounts may also show you your current score on the dashboard when you log in, like Tomo’s dashboard for instance.

  • This startup helps you be credit card debt-free in 2023

    Credit card debt, or any debt for that matter, can be a huge headache. No one likes to borrow money, especially if there is interest accruing on top of that. This New Year, make sure you are well organized and have a plan focused on your financial goals. SF based startup, TomoCredit, helps their users manage credit debt through one of their unique card features — weekly autopay. Users don’t have to worry about remembering to pay on time or carrying a large balance. Instead, the autopay feature triggers weekly on users’ full balance. This means a quicker credit score boost AND 0 credit debt! You start with a 0 balance every week.

    Nothing says “new year, new me” like a freshly paid-off credit card every week! Asides from the nifty autopay feature, TomoCredit also features a 0% APR/0 interest AND you don’t have to have credit history to apply!

  • 6 Tips for First Time Credit Card Holders in 2023

    It’s 2023 and you’ve finally decided to open a credit card. Congrats and welcome to the credit building family! We’re so proud of you for taking action towards your personal financial journey 🙂

    TomoCredit wants to share with you 6 tips that will help you maximize your Tomo card:

    1. Pay your bills on time. Luckily, the TomoCard has a weekly autopay feature that allows you to build credit with ease. No need to remember to pay your bills and risk late fees, we got you!

    2. Check your credit score. The Tomo app dashboard displays your credit score as soon as you log into your account. We want to make it easy and convenient for you to understand your credit building journey.

    3. Pay the full balance/keep balances low. Try not to keep a balance on your credit card and try to maintain a low or 0 balance. This will help build your credit fast and document healthy spending habits. With Tomo, you will never hold a balance, since our card triggers weekly autopay on the full balance.

    4. Monitor fraud charges! Always make sure to keep an eye on your account and check frequently for any errors of fraudulent charges. The New Year typically brings in good deals for savings, requiring personal information and payment methods. Make sure that you are diligent and pay attention to where you shop and give your money to.

    5. Be strategic with your credit card. For first time credit card holders, a good tip would be to use the card for one bucket, so you know exactly where your money is going and how much to expect when you spend. For example, delegating the card to use for groceries and gas only, or subscriptions like Netflix/Hulu only. This makes it easier for you to keep track of your spending while easily boosting your credit score.

    6. Use your perks! Many people forget to take advantage of all the benefits and services that their credit cards offer. TomoCredit card is among many that offer great benefits for its members. Because Tomo is partnered with MasterCard, we offer World Elite Benefits, which include:

    • Cell Phone Protection: Pay your cell phone bill with your Tomo Card and you’re protected for up to $1,000 against damage or theft.
    • Zero Liability Protection: As a Mastercard cardholder, you’re not responsible in the event that someone makes unauthorized purchases with your card.
    • Mastercard Global Service: Get emergency assistance and in any language. Also helps with reporting a lost or stolen card, obtaining an emergency card replacement or cash advance, finding an ATM and answering questions on your account.
    • Mastercard ID Theft Protection: Activate your card by registering your card number and receive alerts when suspicious activity is detected and resolutions services if needed.
    • DoorDash: Cardholders that are new to DashPass will receive a three-month membership. Cardholders will also get a $5 discount on their first order each month (valid until September 30, 2023 or while supplies last) — this $5 discount requires having a DashPass membership.
    • Lyft: Get a $5 credit for every three rides taken in a calendar month (capped at one per month).
    • HelloFresh: Get 5% back on each HelloFresh purchase that can be used towards a future HelloFresh order.
    • ShopRunner Membership: Get free two-day shipping and free return shipping at over a hundred online retailers.
    • Fandango Credit: Get $5 off your next purchase when you spend at least $20 on movie tickets or streaming with Fandango.
    • World Elite Concierge: 24/7 access to a concierge service that can help you with tasks such as obtaining hard-to-find event tickets.

    Hope these tips were helpful! To apply to the TomoCard, check out our website: www.tomocredit.com.

  • This startup wants you to reach the highest credit score FAST in 2023!

    As many of us are planning our New Year’s Resolutions, it seems safe to say that Financial Resolutions usually make the top of the list.

    This year, TomoCredit, an SF based startup, wants to help millions reach their highest credit score, as FAST as possible. TomoCredit is targeted towards GenZ and Millenials and aimed at helping those who don’t have any credit history/bad credit.

    The TomoCard has some unique features that make it the best credit card of 2023 to help build credit fast. Here are 5 key features:

    1. Weekly Autopay — this means on-time payments and 0 balance every week. Because of the weekly payoff, your healthy spending habits are being reported more frequently to all 3 credit bureaus (Experian, Equifax, TransUnion). Frequent reporting = credit building FASTER.
    2. 0% APR/interest — yes, you read that right
    3. Up to $10,000 credit limit
    4. SSN not required to apply!
    5. Free benefits worth over $500!

    So, what are you waiting for? Start your 2023 with Tomo.