Tomo Credit Card Review

If you’re new to credit cards or struggling to get approved for a more conventional card — or even a secured card — the Tomo Credit Card could be your best option. This charge card doesn’t require a credit check or security deposit and can help you establish a positive credit history. And since it’s a World Elite Mastercard, you’ll also get access to several useful benefits and discounts.

However, it doesn’t come with a rewards program or the opportunity to upgrade to a more traditional credit card. And depending on where you bank, it might not even be an option for you.

• No credit check or security deposit required

  If you have limited or no credit history, the Tomo Credit Card may be ideal, since it doesn’t require a credit check for approval. Instead, Tomo uses your banking information and other alternative metrics to determine your creditworthiness. This is especially helpful for recent grads, immigrants and others who are just getting started on their credit journey.

  Tomo uses this same information when deciding your credit limit. This means that, unlike secured credit cards, you won’t have to provide a security deposit to serve as your line of credit. Depending on your cash flow and financial history, you’ll receive a line of credit ranging from $100 to $10,000.

• Reports to major credit bureaus

  Like any good credit card for building credit, the Tomo Credit Card reports to all three major credit bureaus (Experian, Equifax and TransUnion). This gives you a chance to showcase responsible card usage and build a positive credit history. If you’re starting from scratch, it usually takes about six months to establish a credit score. After that, you should see your score updated monthly. Just make sure that you don’t miss a payment, as this will have a negative impact on your score.

  If you want to build credit faster, you can subscribe to Tomo’s TomoBoost feature. For an additional tiered fee, Tomo will include your monthly bill payments in their report to the credit bureaus. This way, you’ll be rewarded for making timely payments on things like rent, utilities, entertainment subscriptions, etc.

• No APR

  Since the Tomo Credit Card is a charge card, you won’t have to worry about racking up interest charges. However, this also means that you’ll need to pay your balance in full each billing cycle. To make it easy for you, Tomo offers a weekly auto-pay feature. Paying your balance each week can help you stay on top of your finances. Even better, it can boost your credit score by helping you keep your credit utilization ratio low.

• World Elite Mastercard benefits and discounts

  As a World Elite Mastercard, the Tomo Credit Card offers the following benefits and perks:

  • Cellphone protection
  • Zero liability protection
  • World Elite Concierge
  • DoorDash discounts: Receive three free months of DashPass and $5 off your first DoorDash order each month
  • Lyft credits: Receive a $5 monthly Lyft credit for each month you take three Lyft rides
  • Fandango rewards: Receive a $5 reward for every $20 you spend on Fandango or Vudu
  • ShopRunner membership: Receive a complimentary ShopRunner membership

• Requires a linked bank account for approval

  Since Tomo uses banking information to determine approval and credit limit, you’ll have to link your bank account with Tomo via a third-party service provider such as Plaid or Finicity. Plus, not all financial institutions are supported. This means your approval odds might be lower if you bank with a smaller organization.

• Monthly membership and other fees

  The Tomo Credit Card bills itself as a no-annual-fee card. However, this is a bit misleading, as Tomo charges a monthly “participation” fee of $2.99. That might not sound like much, but it adds up to $35.88 per year — which is more than the annual fee charged by comparable cards. You’ll also have to fork over up to $40 for a returned payment and $20 for a replacement card if yours is lost or stolen.

  How do the fees and rewards compare?

  In the table below, you’ll see that the Tomo Credit Card’s overall value comes up short when compared to similar credit-building cards:

  	Yearly fees	Estimated first-year rewards*
  Tomo Credit Card	$35.88	$0
  Petal® 2 Cash Back, No Fees Visa® Credit Card	$0	$54
  Secured Chime Credit Builder Visa® Credit Card	$0	$0
  Discover it® Secured Credit Card	$0	$91

  *Based on LendingTree’s value methodology

• Must pay balance in full each billing cycle

  Since the Tomo Credit Card is a charge card, you’ll need to pay your balance in full each billing cycle. If you miss a payment, Tomo will freeze your account until the balance has been paid.

• No rewards program

  If you like earning rewards on purchases, you’ll want to skip the Tomo Credit Card. Since it’s designed for building credit, the lack of a rewards program isn’t too surprising. However, there are plenty other no-credit-check and credit-building cards that do offer rewards. For example, the Petal^® 2 Cash Back, No Fees Visa^® Credit Card lets you earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants.

• History of complaints and negative reviews

  Another drawback of the Tomo Credit Card is a documented history of complaints and negative reviews. You can view many of these on Tomo’s Better Business Bureau profile, where they currently have an “F” rating. Consumers routinely mention poor customer service, as well as issues when trying to cancel TomoBoost.

Tomo Credit Card vs. Petal^® 2 Cash Back, No Fees Visa^® Credit Card

 
If you don’t have many negative marks on your credit history, the Petal^® 2 Cash Back, No Fees Visa^® Credit Card might be a better choice. It doesn’t charge an annual fee — or any other kind of fee — and offers rewards on every purchase: Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants.

The Petal^® 2 Cash Back, No Fees Visa^® Credit Card uses a “Cash Score” rather than a credit check to determine eligibility. Like Tomo, Petal will ask you to link a bank account so they can analyze factors such as cash flow, transaction history and monthly payments. Plus, you won’t need to put down a security deposit, as your credit limit will also be determined by your Cash Score.

Tomo Credit Card vs. Secured Chime Credit Builder Visa^® Credit Card*

 
If you already have a Chime checking or savings account, the Secured Chime Credit Builder Visa^® Credit Card is a great alternative to the Tomo Credit Card. You won’t have to pay a fee to carry the card, and there’s no APR or credit check required for approval. It also reports to all three credit bureaus, giving you an opportunity to establish a solid credit profile with responsible usage.

Unlike traditional secured cards, the Secured Chime Credit Builder Visa^® Credit Card doesn’t require a minimum security deposit**. Instead, you’ll set your own credit limit by depositing a chosen amount into your Credit Builder account. If you want to increase your spending power, you can make additional deposits into your account.

Tomo Credit Card vs. Discover it^® Secured Credit Card

 
If you don’t mind putting down a refundable security deposit, the $0-annual-fee Discover it^® Secured Credit Card should be at the top of your list. You don’t need a credit score to apply, and your security deposit will serve as your line of credit. The minimum deposit is $200, but you can increase that up to $2,500 if you want more spending power.

Like the Tomo Credit Card, the Discover it^® Secured Credit Card reports to the three major credit bureaus, allowing you to build credit with a positive payment history. But it also offers a rewards program, which is rare for a secured credit card. You’ll earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically. At seven months, Discover will start conducting automatic reviews to see if you can transition to an unsecured card and get your deposit back.

The Tomo Credit Card could be right for you if you’re new to credit cards, have been denied traditional cards or don’t want to put up a security deposit for a secured card. It can help you build credit and offers some nice World Elite Mastercard benefits. But if your financial institution isn’t able to link with Tomo, you won’t be approved. Plus, paying a “participation fee” to carry a card that doesn’t earn any type of rewards might be a tough pill to swallow.

There are other no-credit-check cards out there with lighter fees, the ability to earn rewards and opportunities to graduate to an unsecured card. For example, the Petal^® 2 Cash Back, No Fees Visa^® Credit Card has a similar approval process but comes with a $0 annual fee and lets you earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants. Meanwhile, the Discover it^® Secured Credit Card offers an even better rewards rate and starts considering you for an upgrade in as little as seven months.