Category: Uncategorized

  • 8 Tips to Maximize Your Tax Refund

    Tax season is here! The IRS just announced that Monday, 1/23/23, was the first day they would begin accepting and processing 2022 tax year returns. The deadline to file is 4/18/23, so save the date on your calendars! If you plan on making some big purchases with your refund, you might want to read on for some tips and tricks to help you get your biggest refund yet!

    Here are 8 tips that will help you maximize your tax refund:

    #1: Take advantage of an FSA account if your employer offers it

    As part of Tomo’s benefits, we offer all of our employee’s the option to contribute to an FSA account. An FSA account, or Flexible Spending Account, allows you to put money in an account for eligible FSA expenses. When you need to use your FSA dollars, the money is deducted automatically from your paycheck before taxes are taken out. You can save on average 30% by using pre-tax dollars to pay for eligible FSA expenses.

    #2: Donate to charity

    According to the IRA, you may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.

    #3: Claim credit for energy-efficient home improvements

    This credit offers a maximum value of $1,200 per year from 2023 through 2032 and can go toward investments like qualified energy efficiency improvements made to domestic residences (i.e. improvements towards qualified exterior windows, doors and skylights, and building envelope components).

    #4: Max out your IRA.

    IRAs are a great way to save towards your retirement while reducing your taxable income. Make sure the IRA account is a traditional IRA and not Roth. Roth IRA accounts are not tax deductible now, but traditional IRAs offer tax deductibility in the present.

    #5: Reconsider filing status if you are married

    Filing status is important because it determines your credit eligibility, filing requirements and standard deductions. If you and your spouse have similar or identical incomes, a marriage penalty could affect your tax return. Consult a tax professional if you are unsure if you should file jointly or separately.

    #6: Itemize deductions

    According to IRS, you may benefit from itemizing if any of the following circumstances apply to you:

    • You cannot use the standard deduction.
    • You racked up pricy uninsured medical and dental expenses.
    • You paid interest or taxes on your mortgage.
    • Your employee business expenses were unreimbursed.
    • You gave money to charities.

    #7: Start your tax preparation now to avoid delays!

    If your tax return is simple to prepare and you only have a w-2, it is better to get it done as soon as possible. The IRS processes over 100 million returns each year and can sometimes experience delays due to heavy incoming tax forms. Choosing a direct deposit method for your return may also be the best and quickest option.

    #8: If you are a gig worker, count your work as income

    If you are/were a delivery driver, Uber driver, or did any other work as an independent contractor, you must report your earnings and file your income on your tax return.

    We hope that this information was helpful for you to get your biggest refund yet! For more financial tips and tricks, be sure to subscribe to our Medium page and also check out our website www.tomocredit.com.

  • How this Startup is Making Credit Accessible to Everyone

    It’s 2023, but is there still structural racism in the credit card industry? In a survey from 5000 Americans, studies found that BIPOC individuals reported having the lowest or no credit score.

    Though the disadvantage for BIPOC folks has played a significant role in lack of financial education and literacy, this hasn’t stopped them from taking their personal finances into their own hands.

    Our credit card company, TomoCredit, aims to make credit accessible to everyone. We believe that all Americans deserve the right to credit and that no one should be discriminated against because of their race, status, age, etc.

    We are a startup based out of SF, CA, and our founder Kristy Kim, is a South Korean immigrant. Our team is also made of immigrants (90% of Tomo employees are immigrants/POC) and we built TomoCredit to solve our own acute pain points of not having credit history in the U.S.

    In addition to our diverse team, 95% of our TomoCredit customers are POC, which speaks to our unique understanding of just how different credit access for white Americans vs credit for everyone else works. To date, Tomo has helped over 3M people get access to credit they normally wouldn’t have had access to (with no fees or interest).

    If you are interested in learning more, please reach out to press@tomocredit.com

  • GenZ will spend $50 on a cup, but won’t pay off their high APR credit cards

    Many of you may have heard of the infamous “Stanley Cup/Tumbler” trending all over TikTok. Consumers that have fallen prey to this trend seem to be GenZ, many posting cup reviews all over the app. Although the tumblers do have pretty rave reviews and seem to do the job, the cost of the cup is pretty hefty. But with BNPL options, it’s easy for GenZ to spend their money on microtrends.

    What GenZ doesn’t understand is that the cup they thought was $50, is actually near $60 with interest fees. APR awareness is important, and it is definitely more important than a $50 cup you could probably buy off Amazon for $20 cheaper.

    High APR and interest rates are the culprits of many microtrends from BNPL purchases. It’s important that GenZ understand the repercussions of credit card debt and spending.

    TomoCredit, a credit card that has 0 interest/APR and virtually allows you to never carry a balance, wants GenZ and others to be aware of BNPL while shopping. Fees rack up quickly, and the last thing you want is to carry a balance you can’t pay.

    If you are interested in learning more, please reach out to press@tomocredit.com.

  • American credit card debt continues to climb while GenZ is unaware of APR repercussions

    According to Bankrate, 46% of credit card holders are currently carrying debt month-to-month due to inflation and paying for daily expenses. 50% of GenZ don’t know and don’t understand the APR linked to their debt. So what does this mean?

    With no real idea of when inflation will start to go down, many young adults are relying on their credit cards to make purchases. What many of them do not understand is how carrying a balance can affect their credit score and the impacts of interest rates on their balance.

    By carrying debt and not being able to pay back, people are racking up fees from the high interest rates and negatively impacting their credit scores. In a survey from Bankrate that asked which credit card feature is the best and most often used, 36% answered cash back rewards. Cashback is great, BUT, it can be more of a short-term strategy to pay down debt. Instead of thinking about immediate returns, young adults should start strategizing a plan for longer-term debt payoff, like choosing credit cards with 0 or low APR.

    Enter Tomo, 0% APR/interest credit card that doesn’t require credit history. The Tomo card, also known as GenZ’s favorite credit card, has gained popularity among young adults due to its 0 APR and ability for card holders to never carry a balance. This is the perfect card in 2023 as more and more Americans are leaning on credit cards to pay off daily expenses.

    For more information, please reach out to press@tomocredit.com.

  • How to Get a Perfect 850 Credit Score

    If you suffer from a low or (in many cases) no credit score, it may be quite difficult to achieve some of your personal financial goals. Some of these goals include: obtaining an auto loan, mortgage, or applying for any other types of loans.

    According to FICO’s most recent statistics, only 1.6% of 232 million U.S. consumers have a perfect credit score at 850. This feat may seem unachievable, but it isn’t impossible.

    We surveyed 100 people in San Francisco and asked them what their credit score is. Many answered in the mid-600s to 700 range, with a handful above 800 and some at a PERFECT 850.

    We asked those that were above 800 how they achieved this. The following are some tips and tricks they shared:

    1. Pay your bills on time and always pay over the minimum.
    2. Don’t max out your cards.
    3. Keep a low or 0 balance. Some companies, like TomoCredit, feature autopay, so you never have to worry about making a late payment. Tomo’s autopay triggers weekly, so you’ll also never keep a balance.
    4. Only spend on what you need, not what you want.
    5. Have a budget and stick to it. Seems simple, but can be difficult and challenging in practice.
    6. Create a strategy for your credit card usage — designate a credit card to the spending type. For example, if you have more than one credit card, use one for gas and groceries only and the other for major purchases.
    7. Don’t open too many accounts. Retail stores usually have people fall prey to their credit card programs and many tend to forget they signed up for the card until they receive a late payment notice in the mail.
    8. Understand your APR/interest rates. Know how much you are paying and what you will need to pay.
    9. Don’t close your credit card accounts. This factors into your FICO on credit card length history.
    10. Check your score for free. Experian, Transunion, Equifax all have annual free credit reports. Some of your current accounts may also show you your current score on the dashboard when you log in, like Tomo’s dashboard for instance.

  • How to Financially Prepare Yourself During Layoff Season

    How to Financially Prepare Yourself During Layoff Season

    2022 saw a mass of layoffs from many companies, with tech at the forefront. Thousands of people were left unemployed, with many having to figure out how to survive the unexpected news, impacting them mentally and financially.

    More recent news of layoffs is the cryptocurrency exchange platform, Coinbase. They announced last night that they would be cutting 20% of their workforce, after already reducing 18% of their staff in June ‘22.

    Amid these layoffs, we thought it would be helpful to provide a “how-to-guide” on surviving (financially) through unexpected circumstances.

    TomoCredit’s Step-by-Step Guide on Financially Surviving a Layoff:

    1. Make sure you have between 3 to 6 months’ worth of salary in case of a layoff or other unexpected circumstance(s).
    2. File for Unemployment immediately. The quicker you file, the faster you will be able to obtain any funds you qualify for. The process can be lengthy, so do not wait!
    3. Organize your bills and create a strategic plan. Make sure you know what bills are due, if there are any plans you can cancel until you can afford them, and call your providers to see if they offer any program to delay your payment dates.
    4. Check your benefits. Depending on your case and your employer, you could qualify for benefits extension (also depending on what state you live in), i.e. COBRA.
    5. Be frugal! Now is the time to pinch every penny and not spend frivolously on things you don’t need.
    6. Create a savings account and a savings plan if you haven’t already. Put money away that you are not spending on necessities. Practice differentiating between needs and wants.
    7. Evaluate your current debt. This can be student/credit card/auto/etc. You should start to look at all your open debt and reach out to companies to see if they offer any sort of forbearance while you are in a time of uncertainty.
    8. Be open to opportunities. Take advantage of any opportunity dealt your way. Even if the opportunity does not make you a ton of money or is equivalent to what you were making before, this can help pay the bills. And who knows, this opportunity could turn into something better in the future.
    9. Track your spending. Create a spending tracker in Excel and make sure you record every penny you spend. You can also use the “cash diet” method to track expenses. This tactic allows you to be more transparent about your spending and can trick your mind into thinking it is harder to let go of paper money.
    10. Use your credit cards wisely. In times like these, you will want to use any credit card you have, strategically. Stay away from your cards that have high APR/interest. These fees rack up quickly and you’ll be in a lot of trouble. Cards like TomoCredit, with 0 interest/APR, will keep you in a win-win situation by helping you build credit without burning a hole in your pocket.

    We hope these steps will help you get back on your feet. If you have any questions about our latest blog on financially surviving a layoff, feel free to reach us at press@tomocredit.com

  • This startup helps you be credit card debt-free in 2023

    Credit card debt, or any debt for that matter, can be a huge headache. No one likes to borrow money, especially if there is interest accruing on top of that. This New Year, make sure you are well organized and have a plan focused on your financial goals. SF based startup, TomoCredit, helps their users manage credit debt through one of their unique card features — weekly autopay. Users don’t have to worry about remembering to pay on time or carrying a large balance. Instead, the autopay feature triggers weekly on users’ full balance. This means a quicker credit score boost AND 0 credit debt! You start with a 0 balance every week.

    Nothing says “new year, new me” like a freshly paid-off credit card every week! Asides from the nifty autopay feature, TomoCredit also features a 0% APR/0 interest AND you don’t have to have credit history to apply!

  • 6 Tips for First Time Credit Card Holders in 2023

    It’s 2023 and you’ve finally decided to open a credit card. Congrats and welcome to the credit building family! We’re so proud of you for taking action towards your personal financial journey 🙂

    TomoCredit wants to share with you 6 tips that will help you maximize your Tomo card:

    1. Pay your bills on time. Luckily, the TomoCard has a weekly autopay feature that allows you to build credit with ease. No need to remember to pay your bills and risk late fees, we got you!

    2. Check your credit score. The Tomo app dashboard displays your credit score as soon as you log into your account. We want to make it easy and convenient for you to understand your credit building journey.

    3. Pay the full balance/keep balances low. Try not to keep a balance on your credit card and try to maintain a low or 0 balance. This will help build your credit fast and document healthy spending habits. With Tomo, you will never hold a balance, since our card triggers weekly autopay on the full balance.

    4. Monitor fraud charges! Always make sure to keep an eye on your account and check frequently for any errors of fraudulent charges. The New Year typically brings in good deals for savings, requiring personal information and payment methods. Make sure that you are diligent and pay attention to where you shop and give your money to.

    5. Be strategic with your credit card. For first time credit card holders, a good tip would be to use the card for one bucket, so you know exactly where your money is going and how much to expect when you spend. For example, delegating the card to use for groceries and gas only, or subscriptions like Netflix/Hulu only. This makes it easier for you to keep track of your spending while easily boosting your credit score.

    6. Use your perks! Many people forget to take advantage of all the benefits and services that their credit cards offer. TomoCredit card is among many that offer great benefits for its members. Because Tomo is partnered with MasterCard, we offer World Elite Benefits, which include:

    • Cell Phone Protection: Pay your cell phone bill with your Tomo Card and you’re protected for up to $1,000 against damage or theft.
    • Zero Liability Protection: As a Mastercard cardholder, you’re not responsible in the event that someone makes unauthorized purchases with your card.
    • Mastercard Global Service: Get emergency assistance and in any language. Also helps with reporting a lost or stolen card, obtaining an emergency card replacement or cash advance, finding an ATM and answering questions on your account.
    • Mastercard ID Theft Protection: Activate your card by registering your card number and receive alerts when suspicious activity is detected and resolutions services if needed.
    • DoorDash: Cardholders that are new to DashPass will receive a three-month membership. Cardholders will also get a $5 discount on their first order each month (valid until September 30, 2023 or while supplies last) — this $5 discount requires having a DashPass membership.
    • Lyft: Get a $5 credit for every three rides taken in a calendar month (capped at one per month).
    • HelloFresh: Get 5% back on each HelloFresh purchase that can be used towards a future HelloFresh order.
    • ShopRunner Membership: Get free two-day shipping and free return shipping at over a hundred online retailers.
    • Fandango Credit: Get $5 off your next purchase when you spend at least $20 on movie tickets or streaming with Fandango.
    • World Elite Concierge: 24/7 access to a concierge service that can help you with tasks such as obtaining hard-to-find event tickets.

    Hope these tips were helpful! To apply to the TomoCard, check out our website: www.tomocredit.com.

  • This startup says the #1 purchased item during SF Bay Area storm might surprise you…

    If you or your friends and family live in the Bay Area, then you’ve probably been hearing a lot about the recent storm, leaving dozens of cities and cars flooded.

    Tomo’s data team gives an inside scoop on what their customers were spending during this near-record worst rain storm in 173 years — and the purchase item might surprise you.

    Usually, we see people buying items that are essential during a storm, like: non-perishable canned foods, first aid kits, umbrellas, and other winter storm gear. But the #1 item purchased from our Tomo customers were (drumroll, please) ~ dog collars/leashes. Yes, that’s right, pet-related items were #1 most purchased during the storm. I guess this makes sense since the COVID Pandemic resulted in a lot of new fur parents.

    Did you know that on average, annual household spending in the U.S. on pets was $700 in 2022? TomoCredit consumer data shows that spending on pets among the GenZ population nearly DOUBLED during the pandemic!

    Contact us to learn what the 2nd and 3rd most purchased items were during the SF storm.

  • Goodbye BNPL in 2022, Hello BNPN (Buy Now, Pay Now) in 2023!

    BNPL has taken consumers by storm in the last few years. But these apps, like Klarna, Afterpay, etc. should not be expecting the same results from spenders in 2023.

    Consumers this new year are much more diligent and smart with how they spend their money. With more tools and education on financial literacy and startups, like TomoCredit, placing the importance on smart spending, consumers are all ears (especially in this economy).

    Consumers are finally being hit with the high interest they spent on their electronic devices from last holiday. They are learning from their mistakes and to not “bite on an easy hook.”

    SF based startup, TomoCredit, announced that they’ve seen a huge spike in applications in 2022 because of their no interest/0 APR card feature. CEO and founder, Kristy Kim, explains that consumers are feeling the aftermath of easy spending with BNPL options, but don’t understand the repercussions until they see interest fees charged to their account.