Tomo Credit Card Review: A Unique Card for Building Credit

What Is the Tomo Credit Card?

The Tomo Credit Card is a charge card from TomoCredit. A charge card is a credit card that doesn’t let you carry a balance. To continue using a charge card, you must pay off the full balance at the end of each billing cycle.

How Does the Tomo Credit Card Work?

The Tomo Credit Card works by:

• Assessing your application on factors other than your credit score (e.g., your income)
• Granting you a credit limit between $100–$10,000
• Allowing you to make purchases up to your credit limit with the card
• Automatically withdrawing your statement balance from your linked bank account every 7 days
• Freezing your card if you’re unable to pay your balance by the due date

Quick Review

The Tomo Credit Card has many advantages and disadvantages, depending on what you’re looking for in a credit card. Here’s what you should consider when deciding whether or not to apply:

• No credit check required: One of the biggest draws of the Tomo Credit Card is that it doesn’t require a credit check to qualify for the card. That means borrowers with no credit or negative marks on their credit histories can still get the card. However, TomoCredit uses a native algorithm to assess your application, which considers factors such as your income and regular expenses. So qualifying for the card is still not guaranteed.
• No fees or APR: The Tomo Credit Card doesn’t charge fees or even interest. This is unusual for a credit card, but it’s possible because of Tomo’s unique billing system. As credit card debt plagues many borrowers today, escaping interest charges can be a huge perk.
• Weekly repayment schedule: The Tomo Credit Card’s repayment system is either a pro or a con, depending on your needs. Your balance will be automatically withdrawn from your linked bank account every week, so you can’t carry a balance and pay it off over time. This saves you from paying interest, but it also might put financial pressure on you if you can’t afford to pay your bill by the end of the 7-day billing cycle.
• No consistent rewards: The Tomo Credit Card previously earned 1% cash back on every purchase, but now offers no consistent rewards. Instead, you can occasionally get cash back through promotions offered by Tomo, as well as certain subscription and service credits (like a $5 credit for Lyft rides).

Pros & Cons

Who Is the Tomo Credit Card Best For?

You should get the Tomo Credit Card if you’re trying to build credit and have a steady enough income to keep up with the 7-day billing cycle. In particular, there are four main groups of people we think would benefit the most from this card:

• High-income credit rebuilders: If your credit is in bad shape but your finances are good and you don’t want to put down a deposit on a secured credit card, then getting the Tomo Card could be a good solution to get your credit back on track.
• Non-US Citizens: You don’t need a Social Security number to apply for the Tomo Credit Card—instead, you can apply with just an Individual Taxpayer Identification Number (ITIN). This, combined with the lack of a credit check, make the card ideal for recent immigrants working in the US.
• Young adults looking to establish credit: As long as you get a low credit limit that won’t put your finances at risk, the Tomo Credit Card’s unique billing approach can help you develop good credit habits as a newbie, like making frequent and full-balance payments.
• Retirees: If you’ve got a stale credit file with no credit history because you’ve long stopped using credit, it can be difficult to get back into the game. The Tomo Card offers a rare opportunity to start building credit again while potentially getting access to a decent credit line without having to pay any fees or interest.

If you already have an excellent credit score or you don’t have a stable enough income to maintain weekly repayments, we recommend you explore other options.

What the Crowd Says

Professional publications rave about the Tomo Card, while actual cardholders tell you to steer clear completely—or at least make sure you understand what you’re signing up for. It’s important to take into account both cardholder and expert reviews for the Tomo Card to get the full picture and avoid disappointment.

Below is a summary of ratings for the Tomo Card taken from sources across the web:

What Major Publications Say

Experts have great things to say about the Tomo Card in terms of its novel approach to credit building and the potential it gives people to reform their credit and finances at no extra cost—regardless of how terrible their credit is. However, they may not do enough to warn against signing up if you’re short on cash or struggling financially.

Although these professional reviewers warn about the card’s main caveat (that you need to pay the full balance off every week), many glaze over the fact that the Tomo Card is actually a charge card rather than a credit card, or fail to properly explain to readers what that means in practical terms.

What Cardholders Say

The majority of actual cardholders don’t recommend the Tomo Card. Many believe that they’re getting a credit card and are confused and disappointed when they find out they’ve actually signed up for a charge card.

While a small minority praise the card as a low-maintenance option for building credit, others accuse Tomo of false advertising and poor customer service. All these discrepancies between professional and user reviews show that the Tomo Card may have more benefits on paper than in reality.

Lack of Customer Service

One of the main complaints among Tomo cardholders is the lack of a clearly established customer service department. The card issuer doesn’t provide any phone numbers or contact information for Tomo customer service—instead, they use automated response systems, leaving many users feeling frustrated and helpless when something goes wrong with their account.

It’s unclear whether minimal customer service is a part of Tomo’s business model or if it’s a short-term issue attributable to the company’s young age. Either way, don’t expect much help or support from Tomo if you choose to get their credit card.

Unclear Eligibility Requirements

Many people don’t fully understand that the Tomo Card is a charge card rather than a typical credit card and that approval is based on income rather than credit requirements. This seems to cause some users confusion and disappointment when the card issuer rejects their application or closes their account due to insufficient income or bank account funds.

Data Privacy Concerns

Tomo bases their approval decisions on alternative data rather than on your credit score or credit history. Tomo collects information about your bank accounts, income, and spending, which is a source of concern for some users and applicants.

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Rates & Fees

Fees

• Annual fee: $0
• Late payment fee: $0
• Foreign transaction fee: $0

Note that, although there are no late payment fees, you should still pay your bills on time. If you don’t pay off your balance at the end of each week, Tomo will freeze your account temporarily so that you can’t use your card until you’re caught up. Your credit may also suffer.

Interest Rates

With most credit cards, you can carry a balance from month to month. The issuer charges interest on the balance you leave unpaid.

If you have a credit card that allows you to carry a balance from one billing cycle to another, the yearly rate of interest you’ll pay is called the APR (annual percentage rate). However, the Tomo Credit Card does not allow you to carry a balance, so it doesn’t charge interest.

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Rewards

The Tomo Credit Card does not have a cashback rewards rate. It previously offered 1% cash back on every purchase—a claim that’s still prevalent online. However, a customer service representative confirmed that the card now only offers occasional rewards on select promotions.

Credits

In lieu of regular rewards, the Tomo Credit Card offers credits and discounts with certain merchants. For example, you can get:

• DashPass: Free 3 months subscription of DashPass, and $5 off each month
• HelloFresh: Discounts on your first 5 boxes of HelloFresh (equivalent to $90) plus free shipping
• ShopRunner: Free 2-Day shipping and free returns with ShopRunner
• Lyft: A $5 Lyft credit when you take 3 rides

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Credit Limit

The Tomo Credit Card offers initial credit limits of $100–$10,000. Credit limit increases are also available. The Tomo website says that you can achieve a credit limit of $10,000 over time based on periodic account reviews.

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Benefits

The Tomo Credit Card has fairly extensive benefits for a credit card with no credit score requirements, including World Elite Mastercard® benefits and other perks.

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Tomo Credit Card Limitations

There are limits to how much you can use your Tomo Credit Card. We contacted TomoCredit and confirmed that these limits are as follows:

• Number of purchases allowed per day: 20
• Value of purchases allowed per day: $5,000
• Number of purchases allowed over 4 days: 40
• Value of purchases allowed over 4 days: $10,000
• Value of purchases allowed per month: $20,000
• Value of purchases allowed per year: $240,000

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Building Credit

Credit Reporting

Credit reporting is an important part of credit building, as your credit report is based on the information your lenders send to the credit bureaus. Fortunately, the Tomo Credit Card reports to all three major credit bureaus—Experian, Equifax, and TransUnion—every month.

Tips for Building Credit

The Tomo Credit Card is an excellent card for building credit due to the card issuer’s comprehensive credit reporting policy. However, you’ll need to take a few steps to ensure you stay on the right track:

• Keep your account current: Since the Tomo Credit Card requires very frequent payments (once every 7 days), you have many more opportunities to make either on-time or late payments than you would with a typical credit card.
• Use only a small fraction of your credit line: Maintaining a low balance is crucial to achieving a good credit utilization rate, which is a major credit scoring factor. The card’s short billing cycle should make this easier, as long as you don’t charge too much to your Tomo Card each week.
• Keep your account open: Keeping your Tomo Card active in the long term will allow your credit score to benefit from a long credit history and a large credit line (if you qualify for Tomo’s periodic credit limit increases). By contrast, closing your Tomo account could hurt your credit.

The Tomo card offers a rare opportunity to access an unsecured credit line without any credit check. As long as you meet the card issuer’s other requirements, it offers an excellent opportunity to build credit for the first time or recover from major credit issues in your past. All you need to do is use your card responsibly.

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How to Get a Tomo Credit Card

Credit Score Needed

Tomo doesn’t perform a credit check when you apply for the Tomo Credit Card. This means there are no credit score requirements, so you don’t have to worry about your credit report sabotaging your application.

Application Requirements

As part of your application, the Tomo Credit Card issuer will evaluate your finances (instead of your credit history). They’ll do this by using the financial history of the bank accounts that you link to the card. They will then decide whether to approve your application and, if so, for what credit limit.

Notably, you don’t even need a Social Security number to apply for the Tomo Credit Card. You can use an ITIN (an Individual Taxpayer Identification Number, which is a number that the tax authorities issue to non-residents of the US for tax purposes), so new immigrants can apply.

How to Apply

Tomo says that it takes only five minutes to apply for a Tomo Credit Card online. You’ll have to provide some basic information, but Tomo won’t perform a hard inquiry (a credit check that’s visible to others viewing your credit report and has a small impact on your credit score).

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FAQs

Is the Tomo Credit Card legit?

The Tomo Credit Card is a legitimate product from TomoCredit, which has been incorporated since 2019 and BBB-accredited since 2021. However, the company has garnered a lot of criticism over the card and accusations of foul play from borrowers and applicants.

There are currently 49 complaints registered against them with the BBB, and 63 reviews that average a rating of 1.25/5 stars. Complaints against the company are largely based on the following accusations:

• Tomo failed to cancel charges and provide provisional credit after borrowers reported their Tomo Credit Cards lost or stolen.
• Tomo rejected borrowers’ applications for the card even though they had proof of adequate income.
• Tomo withdrew money from borrowers’ bank accounts without consent or after the borrower had tried to cancel a payment.
• Tomo canceled borrowers’ Tomo Credit Cards without permission or explanation.
• Tomo’s failure to provide a customer service phone number has made resolving issues with cardholders difficult.

These claims have been levied by individuals online and have not been verified by TomoCredit or the BBB. However, it’s always a good idea to consider other users’ experiences when deciding whether you want to move forward with a specific credit card.

Is the Tomo Credit Card a secured card?

No, the Tomo Credit Card is not a secured card. Secured cards require a security deposit which determines your credit limit. Tomo is unsecured, so you won’t need to pay money upfront to open an account.

Can I use my Tomo Credit Card at an ATM?

No, you cannot use your Tomo Credit Card at an ATM to withdraw funds. This function is known as a cash advance, and it’s not available on Tomo Credit Cards.

Does the Tomo Credit Card charge for foreign transactions?

The Tomo Credit Card allows you to make foreign transactions, and doesn’t charge any fees for doing so.

Many credit cards that allow foreign transactions charge fees equivalent to 1%–3% of the transaction amount, whereas others don’t charge a foreign transaction fee at all. If you travel a lot, fee-free foreign transactions are a great bonus.

Who issues the Tomo Credit Card?

Although the card is a product of TomoCredit, it’s issued by Community Federal Savings Bank.

How does Tomo make money?

Kristy Kim, CEO of TomoCredit, stated in a Reddit AMA that they rely on revenue from interchange fees. Interchange fees are charges paid by merchants when borrowers use their credit card to pay for that merchant’s goods or services. 1

How can I contact Tomo?

If you have questions about the Tomo Credit Card, you can email customer service at [email protected]. They don’t appear to have a phone number, but they do share their location, which likely accepts mail correspondence (although they don’t confirm this):

TomoCredit Inc

535 Mission Street, Floor 14

San Francisco, CA 94105