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Stumbled upon a new credit card called Tomo. Should I get this as my FIRST card?

notmyrealname23
Established Contributor

Re: Stumbled upon a new credit card called Tomo. Should I get this as my FIRST card?

I think WebBank has a relation to Petal similar to that of Elan to the banks and financial firms they do credit card service for. They are a separate company.

https://www.petalcard.com/the-company
https://techcrunch.com/2019/01/29/petal-series-b/

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Message 31 of 85
RehabbingANDBlabbing
Frequent Contributor

Re: Stumbled upon a new credit card called Tomo. Should I get this as my FIRST card?

This is my kind of thread! I am fascinated by the business models used in the financial industry.

 

During the past year I opened and closed a business card that was very similar to this Tomo. It was called Hatch. They called it a line of credit and it is marketed to small business owners who have difficulty getting a business credit card. I had a lot of credit issues at the time, so this was perfect for me. They used Plaid to check my business bank account history and qualify me for the card without a personal guarantee. The actual card was branded as a Visa commercial debit card. It did not earn rewards, and you could carry a balance on it. I liked the idea of this card, but the execution was not good.

 

Problems I experienced:

They held payment for up to 2 weeks, which is not conveninent if you have a smaller credit limit. Their online system was very laggy in terms of generating statements and other stuff. I frequently had my statement generate a week after the date it was supposed to, and they kept getting my interest charges mixed up. I paid in full most of the time, but they would charge me interest and then randomly refund it. IT WAS A HOT MESS. They similarly used a different company to handle the actual card services, but I can't remember the name.

 

I think the goal of these fintech firms is laudible, but I think their two biggest weaknesses are privacy issues and customer service. Coming from a tech background, they expect you to do everything on their website. When you have a catastrophic or strange issue that needs the human touch, they are very difficult to contact. I think I would trust a company like Petal long before a company like Tomo, because of their more experienced connections at WebBank. 

Message 32 of 85
Aim_High
Senior Contributor

Re: Stumbled upon a new credit card called Tomo. Should I get this as my FIRST card?


@notmyrealname23 wrote:

I think WebBank has a relation to Petal similar to that of Elan to the banks and financial firms they do credit card service for. They are a separate company.
https://www.petalcard.com/the-company
https://techcrunch.com/2019/01/29/petal-series-b/


Yes, I noted that those were all "partners" and separate companies.  I did find the whole arrangement and connections to a much larger multi-national corporation quite intriguing.  I was just pointing out that Petal gets money from interest charges, not only interchange fees.  And that with the backing of $940 Million in assets from a large bank like WebBank, it gives them an additional financial options that many startups like Tomo may not have available.  Who knows what sort of arrangement from WebBank helps to fund the Petal card?  Plus, Petal's initial funding from investors as mentioned in the article was over $46 Million by January 2019.  Maybe that funding money is invested with WebBank as part of their $940 Million in holdings as part of a deal.  Perhaps Tomo hopes to do something like that as well.  But I agree that at its' heart, it looks like Petal may also make profits from the data mining that I discussed earlier and that is where Tomo and Petal are similar. 

 

The link you provided on the funding initiative was interesting.  I also found an article from Forbes magazine (10/02/2018: Petal Set to Flourish with $34 Million Funding as US FinTech Finally Blossoms by Monty Munford.)  The article touches on the very privacy concerns about data sharing but also highlights how EU legistation about consumer privacy rights has helped the FinTech business to grow there better than in the US where privacy protections lag. 

 

I, for one, hope that the industry doesn't move so far in this direction that the momentum will make it almost mandatory for the average consumer to allow privacy intrusions before they can be granted credit.  Smiley Sad

 

- - - - - - - - - - - - - - - - - - - - -

(Forbes Magazine):

 

" ... (Petal) also said that 100,000 people who had already joined a waiting list in 2018, who will (obviously) be the first holders of the card. This sounds like a big deal for US FinTech startups, currently struggling to keep up with those in Europe.

 

There are a number of reasons why. US tech behemoths such as Amazon, Facebook, Apple and Google tend to discourage new opposition. Their ongoing forays into real-time payment apps and mobile banking services are frightening in their possible scope.

 

It’s not only that. Europe has especially benefited from legislation for the customer.

 

When authorized by the customer, the Payment Services Directive 2 (PSD2) enables the sharing of user (banking) data with other parties and here’s also the controversial General Data Protection Regulation (GDPR) that allows EU citizens to control their personal data; both initiatives mean a more transparent environment for consumers, banks and FinTech startups alike.

 

No surprise then that European FinTechs such as Monzo, Revolut, Transferwise, iZettle, Curve and many others have soared ahead in customer acquisition."

 

Link to complete article:

https://www.forbes.com/sites/montymunford/2018/10/02/petal-set-to-flourish-with-34-million-funding-a.../#7ef163d34850



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Message 33 of 85
folks19
Frequent Contributor

Tomo Credit Card, no credit check, builds credit

I recently heard of this new card called Tomo Card. It's main idea is that it doesn't "beleive" in credit scores, and does not make a decesion based on your credit score. They don't even do a HP for applying. Instead, you must give them access to your bank account, and they look at your financial situation to make a decesion. You can't carry a balance either. The amount you spend comes out of your bank account automatically. I guess this is like a charge card, but unlike a charge card, you don't actually pay off your balance in full. Instead, they just charge your bank account automatically, so I would say that it's more like a debit card but a few exeptions. First, you aren't charged until the stamement closing date. Second, and more importanlly, it reports your payments to the credit agencies, and it builds credit.

The card isn't avialeble yet, but you can join the waiting list at there website. I'll put a link: https://tomocredit.com/

In order to join the list, you fill out a pre-aproval. The truth is, I think that pre-uproval is a joke because they don't even ask you for your name. You can fill out the pre uproval in less than a minute, and they only ask you for your income and email address. I filled out a few pre-uprovals, each with a different email address and a different income (I tried 0), and I was pre-aproved for 5,000 each time. I think that's what everyone would get. Let me know what you get.

Message 34 of 85
Anonymous
Not applicable

Re: Tomo Credit Card, no credit check, builds credit

Message 35 of 85
AverageJoesCredit
Mega Contributor

Re: Tomo Credit Card, no credit check, builds credit

No thanks. Lol, Why would i give a startup access to my bank account  even with no money in it lol, there are better ways to establish credit imo. 

Message 36 of 85
coldfusion
Community Leader
Super Contributor

Re: Tomo Credit Card, no credit check, builds credit

https://www.youtube.com/watch?v=7FPELc1wEvk



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Message 37 of 85
Anonymous
Not applicable

Re: Tomo Credit Card, no credit check, builds credit

There is an edge case for an informed rebuilder with no other options to choose OpenSky.

In contrast I am not clear what case for Tomo is.

Message 38 of 85
Rebuild2022
Super Contributor

Re: Tomo Credit Card, no credit check, builds credit

Chime is also came out with a credit card. They call it secured card instead of credit card. You transfer part of your funds in your chime account to secured card account and that becomes your limit. It is almost like a secured card but you are not tying up your money in a secured card.

Gardening since 08/2020
Message 39 of 85
Anonymous
Not applicable

Re: Tomo Credit Card, no credit check, builds credit


@Rebuild2022 wrote:

Chime is also came out with a credit card. They call it secured card instead of credit card. You transfer part of your funds in your chime account to secured card account and that becomes your limit. It is almost like a secured card but you are not tying up your money in a secured card.


Hmm... interesting. 

"For most secured credit cards, that few hundred dollars of deposit are unavailable to you, the consumer, until you close the account. With Credit Builder, you can use it to pay for monthly charges! Plus, Credit Builder charges 0% APR, $0 in fees, and there’s no large deposit required upfront (You get to choose the amount!)"

 

It sounds like it's still not able to be moved off the card and back to the Chime deposit account but you can pay your charges with it. 

They also say it's a NPSL card. Does it actually report that way because that's huge if the credit limit is only internal. 

 

"Credit Builder doesn’t have a pre-set credit limit. With a typical credit card, using a high percentage of your available credit limit could negatively impact your credit score. You don’t have to worry about that with Credit Builder!"

Message 40 of 85
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