5 Things to Know About the Tomo Card

With no credit check or interest, the Tomo Card can help you build credit and stay out of debt. There is, however, a monthly fee, and you'll have to link a bank account to get the card.
Caitlin Mims
Melissa Lambarena
By Melissa Lambarena and  Caitlin Mims 
Edited by Kenley Young

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Editor's note: As of 2023, the Tomo Credit Card stopped offering cash-back rewards and began charging a monthly "participation fee." It has also moved back to a waitlist. In early 2024, Tomo confirmed that spending has been temporarily disabled for certain existing cardholders. The company says those accounts continue reporting to credit bureaus and have not been terminated. Tomo claims it is preparing to launch a new product, but it's unclear what that will mean for existing cardholders.

If you're looking to build credit or avoid interest or fees, explore our article on other alternative credit cards that are accepting applications. Just keep in mind that while any credit card can adjust its rewards, benefits and fee structure at any time, new cards from startup financial technology companies like Tomo are particularly prone to significant changes as they find their place in the market.

The Tomo Credit Card, created by San Francisco-based startup TomoCredit, was launched as a card for those with no credit or poor credit (FICO scores of 629 or below) who want to establish a credit history without carrying a monthly balance. Unlike a lot of cards that target a similar audience, there's no security deposit or even an APR. You can't carry a balance, so it's almost impossible to get into debt trouble.

Also unlike traditional credit card issuers — which usually conduct a hard inquiry when reviewing your application — TomoCredit never runs a credit check. Instead, the company's proprietary technology can weigh many data points, a key few being your income (or income potential) and your account balances. The bank that issues the card, New York-based Community Federal Savings Bank, uses this data to determine whether you’re a good candidate for the card.

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In this way, the Tomo Credit Card is similar to other alternative credit cards that can use unique underwriting techniques that aren't necessarily tied to credit scores. But that doesn't mean the card is right for everyone. For one thing, in lieu of interest, you will owe a monthly "participation fee" that adds up to almost $36 each year. And for another, the card is now on a waitlist, and some existing customers have reported problems using their cards.

Tomo Credit Card
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Here are five things to know about the Tomo Credit Card.

1. No credit check is required, but a linked bank account is

Because there's no hard pull on your credit report when you officially apply, it won’t impact your credit scores the way a traditional credit card application does. Instead, TomoCredit says it looks at a number of data points to determine eligibility. One of them is how much money you have and how you manage it.

It uses different data points such as your phone number, email address, the channel used to sign up for the card, the balance in your bank account, the amount and stability of your income, and possible red flags, according to Kristy Kim, CEO and co-founder of TomoCredit.

To get this information, TomoCredit requires you to link at least one account through Plaid, a third-party service provider. You can link a checking account, savings account, investment account or another eligible account.

Your bank account login details aren't stored and aren't visible to TomoCredit employees, according to the company’s website.

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If you prefer not to link a bank account, a secured credit card could be an option. These cards can be ideal if you have poor credit or no credit, but unlike with the Tomo Credit Card, you’ll have to come up with a security deposit upfront — usually a few hundred dollars, depending on the card. You typically get the money back once you close or upgrade the card, assuming you’ve maintained a good payment history.

2. There's no APR because you can’t carry a balance ...

The Tomo Credit Card doesn’t charge interest. That's because, unlike traditional credit cards, the Tomo Credit Card doesn't allow you to carry a balance from one month to another, making it impossible to rack up debt. You can also enroll in a seven-day automatic payment schedule. A payment is automatically deducted from your bank account to cover the balance every week.

Frequent payments keep your credit utilization low (a key factor in your credit scores) and help you establish credit. Payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. These companies collect the information used to calculate your credit scores.

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Even without the risk of fees or interest, you should still make payments on time to prevent the card from being frozen and your credit from taking a hit. Accounts that are delinquent may still be reported to the credit bureaus and get sent to collections, Kim says.

3. ... But it will still cost you to hold the card

Technically, the Tomo Credit Card doesn't charge an "annual fee" — but it does charge a monthly one.

You'll pay $2.99 per month ($35.88 annually) to hold the card. Among cards for poor credit, that's not an outrageous cost, especially given TomoCredit's unique underwriting formula and the card's potentially generous credit limit. Depending on the factors that TomoCredit weighs in its underwriting, it's possible to get a credit limit of up to $10,000. After making the first payment on time, you may also see your credit limit increase, Kim says.

But it's worth noting that when the Tomo Credit Card first launched in 2021, it charged no such monthly fees. Those were added in 2023.

4. You may qualify for perks, but not rewards

The card also once offered modest rewards — 1% cash back on purchases — but that, too, changed in 2023.

There are no spending-related rewards now. Cardholders will have access to perks with companies like Lyft and DoorDash, but those come largely from Mastercard, the payment network that the Tomo Credit Card runs on.

When working on shoring up your credit, earning rewards isn't really a priority. But if you'd prefer to do both at the same time, instead consider the Capital One QuicksilverOne Cash Rewards Credit Card or Capital One Quicksilver Secured Cash Rewards Credit Card. Both offer 1.5% back on all purchases. In exchange for the higher rewards rate, though, you'll either need to pay a $39 with the Capital One QuicksilverOne Cash Rewards Credit Card or put down a security deposit with the secured version. Paying an annual fee or a security deposit can be a hassle, but depending on how much you spend with your card, the higher rewards rate could easily offset the cost of these cards.

5. You may qualify with no Social Security number

Newcomers to the U.S. who want to build credit may also qualify for the Tomo Credit Card. If you don’t have a Social Security number or Individual Taxpayer Identification Number, it’s possible to apply with other information on a case-by-case basis, Kim says.

Among credit cards, that feature is still a rarity. The Deserve® EDU Mastercard for Students is another card that doesn't require a Social Security number upfront in certain situations, but at the moment it has paused applications.

See how the Tomo Credit Card compares with alternatives by visiting NerdWallet's list of the best credit cards.

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