This New Year, TomoCredit, a fintech startup based out of San Francisco, CA, wants to help you build credit even if you don’t have a credit history! (or if you simply need to rebuild your score).
The Tomo card, better known as “GenZ’s favorite credit card”, lets you build credit without having ANY credit history. The card also has 0% APR/interest and since it is MasterCard “World Elite,” there are a ton of perks for members, including: $1000 cell phone protection and Lyft/DoorDash/HelloFresh credits. Talk about a win-win!
The Tomo card also features weekly autopay, which allows users to boost their credit FAST. What better way to start the New Year than with good credit?! The Tomo card reports to all 3 credit bureaus — Equifax, Transunion, and Expedia.
So if you plan on buying a home, car, or any other expense requiring a loan, this card will help you reach your credit score goals.
Check out how we are on a mission to help millions of others reach their financial and credit score goals by visiting our website: tomocredit.com
Crypto has been viewed upon as speculative instruments, not payment mechanisms. While Bitcoin was originally intended to be a new world currency, it has transitioned to more as a hedge against inflation and a store of value. In a sense, spending Bitcoin would be a lot like spending Apple stock. Sure, you can spend it, but it would also be fairly regretful if the remainder of your holdings kept going up. The psychology behind this prevents users from making this a true payments system (unless you had a ton to get rid of).
However, with the advent of Stablecoins, the game has changed. Stablecoins are cryptocurrencies that maintain a $1 peg, which means that they are not meant to be speculative assets. Newer networks allow pretty amazing interest rates on top of these, but in general, these should not be any different than the $1 in your bank account, your credit balance, or in your wallet.
Stablecoins come in many forms, asset backed (like USDC), algorithmic (like UST), or a combination of both. In general, there are some controversies on how a stablecoin can maintain a peg even during volatile market conditions. But why is this so hard to spend today?
Take an example of how you’d have to do it:
01 Send to a crypto exchange To spend your crypto, you must first take it off any wallet or protocol you have it in, that means sending it to an exchange.
02 Trade to USD That’s right, just like any other crypto asset, you need to convert crypto on an exchange. Some offer free conversions from USDC, but otherwise you have to pay fees too.
03 Send to a Bank account Even with the benefits of crypto instant settlement, you still need to withdraw to your bank account after you sell on an exchange, which can take an extra day or two.
How TomoCredit is Solving the Payments issue
Tomo is a crypto wallet
We think making the core product a crypto wallet is important, that way you can have the safety of a custodial wallet.
Choose which coins to spend
We default to your stablecoins, but if you prefer to spend other crypto assets, you can choose them as a default.
Autopay automatically converts and pays off your card
No need to worry about trading or withdrawing, Tomo will automatically convert coins that are needed to pay off your credit balance. Spend your credit card like you normally would.
A good credit score is essential for purchasing a new place, a new car, or taking out a loan with better interest rates — but what factors go into the number?
No Single Number
First, there is no definite credit score — there are different credit score models. The credit reporting agencies TransUnion, Experian, and Equifax together give the VantageScore. The FICO score is another well-known and widely accepted model that was introduced in 1989. Creditors use the FICO score to evaluate past credit use for lending decisions.
Factors of the FICO Score
According to the FICO website, the score pulls from five different categories: payment history, amounts owed, length of credit history, new credit, and credit mix.
Payment History (35%)
This is the most important category — it looks at if you have made your credit payments on time. The score in other words reflects your trustworthiness and timeliness. Repeated late payments will damage your score.
Amounts Owed (30%)
This looks at how much of your available credit you are using. By standard, using about 30% is recommended. For example, if you have a $1,000 credit limit, try to use around $300.
Length of Credit History (15%)
This factor looks at how long you have held your credit accounts. The longer, the better — but if you have an old credit account that you have made many late payments on, that will not reflect well on your score.
This category also explains why many people are encouraged to start a credit card as early as possible — especially if you are a college student.
New Credit (10%)
When you open a new credit account, it will decrease your score temporarily, for up to six months. Making new credit accounts however is not discouraged. Rather, you should not be opening too many in a short period of time.
Credit Mix (10%)
The credit mix looks at the different types of accounts you hold: credit cards, loans, and more. Credit cards are considered revolving accounts, where payments are made monthly and are flexible. Installment accounts like mortgage loans are fixed monthly payments. If you prove your responsibility to manage both, it will reflect well on your overall credit score.
The biggest takeaway should be that above all, timely payments are significant in increasing your credit score. You can set up autopay functions like many credit card accounts offer, or set monthly reminders on your phone to manually make the payments.
Although different credit scores have different calculations, these factors overall remain important across the board. Knowing these different factors will help you guide your decisions on credit spending, and opening new accounts.
For many college students, student loans are a major component in helping to afford college. Life after college can be especially confusing when having to manage both student loans and personal finances. For some, it is the first time they have to deal with things like budgeting and making student loan payments. Many schools also do not teach financial literacy, leading there to be several common misconceptions regarding student loans and credit score. So, how does student loan affect credit score?
Many believe that there may be a good or bad association between student loans and credit score, or that there is no relationship at all. But in reality, student loans can affect your credit score both negatively and positively.
How to avoid student loans from hurting your credit score
There are five components that make up your credit score: amounts owed, new credit, payment history, credit mix, and length of credit history. Student loans affect payment history, credit mix, and length of credit history.
Keeping up with monthly payments is key. Payment history makes up 35% of your credit score. While forgetfulness does occur, missing continuous payments will be detrimental to your payment history. Payments that are overdue should be taken care of immediately. The more overdue your payment is, the larger the consequence that you will face. You may end up going into default as a result. For federal student loans, this occurs after 270 days of not making the payment, and for private student loans this occurs after three months. Your credit score will drop when your lender reports the late payment to one or all of the three major credit bureaus.
Remember to borrow mindfully. Applying for new loans can hurt your credit score, especially if you have several loans, do not have a long credit history, or student loans are your only form of credit.
If you are forgetful, it may be helpful to schedule reminders on your calendar or set up autopay. If you cannot pay your student loans, try asking your lender to pause or lower your monthly student loan payments as soon as possible.
How credit can benefit your credit score
Conversely, making payments on time will improve your payment history, and therefore benefit your credit score. Presumably, if you have student loans, you will be repaying it within several years. The amount of time taken to repay your student loans affects your length of credit history. Having a history of making regular payments will present you as a reliable borrower to lenders. Student loans also help to diversify your credit mix, increasing your credit score.
If you have student loans, it is important to stay informed about their effects on credit score. How student loans affect your credit score will depend on how you manage your student loans. Making sure to stay organized and on top of your payments will lead you to a better credit score. Having a good credit score is vital to your financial health. You will receive many benefits from a good credit score including low interest rates on credit cards and loans, a higher chance for loan approvals, and much more. If you would like to improve your credit score, consider applying to Tomo. No credit history required, no interests or fees, and your credit will never be pulled.
When I was 4 years old, I remember thinking, “I can’t wait to be an adult!” Then, when I entered my first year of college, I had to be an adult and I had no idea how. Adulting is hard, I get it. A big part of adulting is learning and growing from your mistakes, and a big mistake that most people make in college is not learning how to manage their money. Personal finance isn’t something they teach you in high school, so don’t feel bad about not knowing anything! Here are some things I wish I knew about finance in college, so that you don’t have to repeat my mistakes!
Don’t spend more than you can afford.
I was fortunate enough to have my parents pay for my expenses in high school. I didn’t see the money leave my bank account so it didn’t occur to me that I might have been spending a lot. When I started college, I started paying for my own expenses and it hit me how bad my spending habits were. I ended up spending without taking note of how much I was spending, because I was so used to just buying things without a care in the world. After I started noting my spending habits, I ended up saving a lot of money and only bought things I needed. Make sure you only buy things that you can afford and always take note of how much you spend so you don’t get any surprises at the end of the month!
Put some money into savings.
It’s tempting to spend all of your money because with more money you can buy more things! However, that only gives you temporary satisfaction. Putting your money into a savings account is an investment into your future. You never know if you might run into a tough financial situation in the future. If you start by saving five dollars a day, that can add up almost $2000 in a year! This can also help when paying off student debt in the future. When you put money into a savings account, you also earn interest! Consider looking at a high-yield savings account since it has a higher interest rate than a regular savings account.
Take out loans wisely.
Student loans may seem like free money since you don’t have to pay it back immediately. Some students might end up using this money for non-school related expenses. It’s important that you manage your loans wisely so that you don’t end up with a huge debt at the end of it all. Learn about the different types of loans your school offers. It’s typically recommended to take out subsidized loans first whenever possible before considering unsubsidized (private) loans. The government will pay for the interest on subsidized loans while you are still in school, but unsubsidized loans will start accruing interest the day you take it out. When it comes time to pay off your loans, make sure to start with the loan with the highest interest.
Turn your hobby into money.
You can make money out of doing just about anything! With the help of the internet, it’s become even more simple to sell your services. If you’re interested in photography, consider offering your services for graduation photos! For those into arts and crafts, you can sell your work using different platforms, like Instagram or Etsy. I even knew someone who was cutting hair in their apartment! Not only can you make money, but you can also add these experiences onto your resume or portfolio. Get creative and almost anything can earn you a stream of income.
Understand how credit works.
You hear it all the time, but everyone really does need credit. Having a good credit history will help when buying things like a car or a house. Your credit score basically tells the banks how trustworthy you are with money. Getting your first credit card to start building credit might not be easy. Credit card companies look at your credit before deciding if they can trust you with a credit card. Luckily, there are some great options for students. Students can become an authorized user of their parent’s credit cards. If students want their own card, they can consider a student card. Student credit cards consider the fact that you may not have a credit score and are geared towards college students. Another great option is TomoCredit. The Tomo card is great for college students and international students who don’t have a credit score. There are no interest fees and Tomo will never do a credit pull, which means it won’t lower your credit score in any way! It’s important to start early, because the longer your credit history, the better!
Do you really need that extra piece of plastic in your wallet? Yes, and here’s why.
Build credit.
A credit score and credit history may seem ambiguous now, but there will come a day when you will wish for that high credit score and long credit history. Whether it is renting or buying a property or financing a car purchase or some other large purchase, your credit score and credit history matter. They will determine if you get approved for that new home or new car, and the borrowing rate you are charged. Would you rather pay more than necessary? Absolutely not, no one does. Time to get a credit card and start building that credit.
Rewards.
There are so many credit cards out there and most of them offer some form of rewards, sometimes even just for signing up! Besides sign-up bonuses, most credit cards offer continuous cash back rewards as you use the card. Why not start paying yourself back for spending money?
Interest-free borrowing.
By using credit cards, you can borrow money for a short period of time and pay zero interest as long as you pay off the credit card in full by the payment due date. You can’t get a lower rate than that.
Peace of mind.
Most credit cards come with some form of insurance these days. This means if you have a fraudulent charge on your card, you can easily report it to your bank and get the funds back right away. If you rely on using cash for all transactions, you risk getting it stolen or simply losing it. With a debit card, your money actually leaves your bank account if a fraudulent charge were to occur. You will eventually get your money back, but it can take longer than if it were to happen to a credit card.
Avoid foreign transaction fees.
There is a lot of world to see and that requires traveling. If you get the right credit card, you can avoid foreign transaction fees when traveling in a different country, which can add up quickly. Save your money for traveling and don’t waste it on fees.
Convinced you need a credit card now?
Be one of the first to get in on the next generation of credit cards. Visit TomoCredit.com to learn more.
We recognize with the ever-changing COVID-19 virus situation that this is an uncertain time for everyone. Our hearts and our thoughts go out to everyone on this planet that we call home.
At the end of the day we are all human, and sooner or later we must all face challenging times. Preparing you, our customer, for future financial success is always our #1 priority. To ensure that our cardholders achieve that success even in these challenging financial situations, we are waiving required monthly payments for the next two months. We hope this will lessen the impact of the stresses we all face globally and hope it keeps you on track to financial success.
The spirit and well-being of our team is what keeps Tomo’s dedication to your success alive. Considering the most recent news and announcements from the World Health Organization (WHO) and Centers for Disease Control and Prevention (CDC), we have made the decision to allow all employees to work from home for the next few weeks. We are offering extended sick leave for every team member and have temporarily suspended all business travel.
Situations like these serve to remind us why Tomo’s vision is important! Giving underserved customers a way to gain the financial freedom they deserve is especially important in times like these, which serve only to motivate our team to work harder in the face of challenge. Team Tomo is still on schedule and working diligently, rolling out new features and processing applications. Our mission has always been to ensure an opportunity for everyone to easily access credit and start building their road to future financial success.
Our love goes out to you all. We appreciate your support in helping redefine credit for the world! If you have any questions, please don’t hesitate to reach out to us at any time.
In the US, having good credit matters more than ever. Having good credit will ensure you qualify for affordable rates on student loans, auto loans, insurance, and mortgages, saving you tons of money and making it easier to pay them back in the long term. Credit can determine whether you can qualify to rent an apartment by yourself, finance your iPhone/car/furniture, or land your dream job.
Establishing strong credit is the first thing you should do when you land in the U.S., and it all begins with your first credit card. Having a good starting card allows you to build a strong credit history quickly and easily.
Source: Credit.org
No one starts with a great credit score — it takes some time to build. The three major credit bureaus in the U.S. — TransUnion, Experian, and Equifax — consider three to six months of credit activity before they start updating your credit report.
Starting your credit journey as soon as you arrive in the U.S. is one of the wisest things you can do for your financial future.
Where do I start?
Getting a credit card is the fastest and easiest way to begin building your credit score, but there’s often a catch — most credit card companies only issue credit to those who already have an established credit history. Because credit history is used as the main factor to determine the credit risk of an applicant, if you don’t have any credit history, it’s unlikely that you’ll get approved at all!
This is where Tomo comes in… Tomo is a new generation of credit card that doesn’t require a credit score or security deposit to determine your creditworthiness. Tomo issues credit cards based on an evaluation of your banking history instead — your account balances, income, and spending trends. Tomo’s smart repayment system manages consistent on-time payments to help you build good credit, faster and more easily. Because Tomo is committed to helping you build good credit fast, it carries no fees of any kind! Did we mention Tomo offers a high cash back reward of up to 20%? You heard that right. Earning cashback while building credit has never been easier!
Apply today and join the future of building credit.
I recently moved to San Francisco from London to study for an MBA at Berkeley Haas because I wanted to be at the heart of the tech ecosystem and learn more about the innovation happening within financial services. In order to understand this landscape more, I wanted to work with a company innovating the space, and I’m lucky enough to be working with Tomo.
Tomo addresses a huge pain point I had when I moved here as an international, a lack of US credit history. A lack of credit history meant I was unable to apply for almost all credit cards and unable to earn a variety of rewards offered by different card companies. Additionally, credit history is a requirement for some cell phone plans, for apartment rental eligibility and it can have an adverse impact on the amount you pay for insurance premiums. However, through lots of market research for an alternative and for interesting Haas affiliated fintech companies, I came across Tomo which was tackling both of these issues.
Tomo is a fintech startup that currently offers a credit card that does NOT require you to have a credit score, which is exactly what I was looking for. I reached out to the founder Kristy and was able to get an early look at the product and the functionality they are offering. They are also working on technology that allows you to get approved for a card without having an SSN which is how I was able to get a card. This is a game-changer for international students who often have no credit history or SSN.
Me with my Tomo card!
Not only did they get me my first credit card, but they also offer crazy cashback! For every person you refer and is approved, you will EACH receive an additional 1% in cashback which is how in a short amount of time I’m earning 8% cashback! You can do this with up to 19 people at a time allowing you to boost your cashback up to 20%. Whilst doing all of this, I am building up my credit history! It’s honestly amazing.
There is limited availability and the waitlist is filling up fast. So if you are looking for a modern-day credit card with the best cashback or you have no credit score or SSN, then Tomo is the card for you!
Here at Tomo, we know you’re not just a credit score. When you sign up today not only can you get approved with no credit history but we are the first card offering up to 20% in cashback. EVER.
How does it work?
First, you’ll want to sign up for our waitlist. When you get your welcome email, simply apply for our card like you would for any other credit card — minus the credit check! Tomo Credit assesses your eligibility not by looking at your credit score, but by analyzing your banking history.
Once accepted you will receive a unique referral code that you can share with your friends, colleagues and acquaintances. For each person that is approved for a card, you both receive 1% in cashback rewards.
Cashback works via redeeming the Tomo points you earn from spending on your Tomo card for cash. For example, if you have referred 19 people that get approved for a Tomo card, you will earn 20% in cashback. When you spend $100, you will receive 2,000 points. 100 Tomo points = $1 in cash so the 2,000 Tomo points you earned are worth $20 in cash which can be withdrawn into your checking account. It’s that simple.
Your cashback bonuses for referring people are valid for three months and you can replenish these with new referrals to keep your cashback high for a longer period.
You can track your balance, rewards, and pay off your card on the dashboard on mobile or web browser.
Tomo cards are currently limited to only 50,000 so the quicker you sign up the better. Also, don’t forget the more you share, the more rewards you will earn!
You can get on the waitlist by using the below link:
