Tag: Credit

  • Shop Smart Online: 7 to Use Your Credit Card Safely

    Have you ever been online shopping and all of a sudden a pop-up message blocks your whole screen with a message like, “A virus has been detected on your computer. Please click on the link to remove the virus from your computer,” or something of that nature?

    Well, you’re not alone. Millions of people every day are sent phishing emails or scam alerts, making online shopping one of the most prevalent places for your financial information to be compromised.

    Here are 7 tips on how you can use your credit card safely for online shopping:

    1. Shop on trusted websites. Make sure to check the site has a lock to the left of the website URL.
    2. Avoid using public Wi-Fi. Public Wi-Fi is often unsecured and very vulnerable to hackers.
    3. Update your passwords. If the website you are shopping on asks for you to create a password for your account, make sure to create a password that is strong and unique. Don’t use a password that you use for your important accounts (i.e. financial accounts).
    4. Be alert for phishing scams. Make sure you pay attention to the details. If you receive “fishy” emails or emails from unfamiliar people requesting your attention and action,, do not respond with any personal information or click on any links they send you. If your credit card company offers fraud alerts, make sure they are turned on.
    5. Monitor your accounts regularly. Log into your credit card accounts regularly and make sure to check there aren’t any suspicious or fraudulent activities. Make sure to report any fraudulent/suspicious activity to your provider immediately.
    6. Update anti-virus/computer software. Make sure you frequently update your computer’s software and any anti-virus software to prevent malware attacks.
    7. Use a credit card you designate to online purchases only. Try to also use a credit card that has your lowest credit line when making online purchases. That way, if you accidentally make a purchase from an unsecured or scam site, you limit yourself from fraudulent withdrawals.

    In conclusion, while online shopping can be an easy and convenient way to shop these days, you want to make sure you are aware of any potential risks you put your credit cards in. Some credit card companies, like TomoCredit, have a huge emphasis on credit card safety and send fraud alerts or allow you to lock your account from your phone yourself. This option allows users to be in control of the safety of their finances. Check with your credit card companies to see if they offer options like this for you!

  • 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

  • 4 Ways to Enhance Your Virtual Networking Experience

    For college students and recent graduates, working and studying remotely for almost a year has created much uncertainty surrounding career growth and future development. Understandably, it can feel overwhelming to sort through a myriad of virtual resources. From career fairs to professional panels, here are 4 ways to get the most from online networking opportunities.

    Find a balance between exploration and goal-setting

    Goal setting may already be familiar to you. As a student, you start your higher education journey with the goal of graduating with a degree in a field that you have spent years studying. In between, you spend these years exploring your interests and setting more goals in between. When networking, find a balance between allowing yourself to explore your opportunities and setting concrete goals to reach in the near future. This could consist of having a goal of a specific industry that you want to break into, and in order to do this you are exploring different roles and responsibilities through networking, volunteering, and attending virtual events. Exploration is important throughout your life and career, but as a student it’s even more valuable as you begin the early stages of your professional development.

    Do your research

    You wouldn’t walk into a room full of professionals without having an idea of what they do. The same principle applies to virtual networking. Although you attend virtual events and network online to learn more about companies and roles, it’s impressive to do your homework beforehand. When looking for opportunities, do some research on the companies that intrigue you. Understand their mission and purpose, and look for openings that you’d like to learn more about so that you can ask for details once you meet company representatives. These representatives and recruiters often have little time to interact individually, so it’s essential to make a good impression and ask questions you couldn’t have found the answers to otherwise.

    Take a growth-first approach

    Any student and recent graduate will tell you that networking is one of the things they miss the most about pre-pandemic life. Reasons for this often revolve around career opportunities, but there is also a social and personal aspect to networking. It’s easy to come off as ingenuine when you enter a networking situation with the sole purpose of getting an interview; remember that building out your networking means creating real connections with people. Although networking today is primarily online, try to see past the screen and use your time to learn about a person’s journey to where they are today.

    Alumni resources

    Whether you are a current or former student, many universities offer opportunities to connect with an expansive alumni network. Check in with your school’s career center. In addition to many other resources, you’ll likely find links to access an alumni network that is willing and open to connect with students and recent graduates. Some schools will have a directory to profiles that you can explore and find alumni who are working in an industry or role that interests you. This is a great way to connect with working professionals, as they will likely be more open to networking with students from their alma mater.

    One advantage of virtual networking is that you have access to a larger pool of professionals available for career chats. Find someone who aligns with your interests and remember that they are human just like you. Ask about their growth in the role and how your own path can grow parallel to that. Also keep in mind that networking is a hit-or-miss process. Don’t get discouraged if your conversation doesn’t lead to an opportunity; use that experience to revise your approach and try again.

    Looking for opportunities? Tomo Credit is launching our Tomo Talk webinar series! Join us as experienced professionals and entrepreneurs from top companies discuss their experiences and provide advice.

    Follow Tomo Credit on Facebook and Instagram for updates.

  • How to Budget as a College Student in 3 Easy Steps

    Managing money as a college student is not an easy task. As you start your college journey, there are many activities to manage such as school work, extracurriculars, social life, etc. Most students quickly learn that it is essential to be cautious of the money you spend in order to continue with daily activities. Here we will tell you three easy steps to budget your money in order to get the full college experience and take off stress.

    Gather your financial details

    This is an important first step in order to understand how much money you will be spending. You can do this by talking with your parents, checking your bank account cash flow, and searching for scholarships and grants that your university offers. By gathering all of this information, it will allow you to see exactly how much money you will have to manage.

    Predict and Plan your Expenses

    This includes anticipating how much money you will be spending on rent, food, textbooks, clothing, transportation, and extra cash for fun. Having a clear understanding of what you have to and would like to spend your money on will help you form a direct plan. This will help you stay cautious of where your money will be spent while at school.

    Track Your Spending

    This is an important final step in budgeting your money as you will need to keep track of all your expenses. By doing this, you can see exactly where you spend your money in case you need to reevaluate your spending. This helps to see where you can cut back or have room to spend more.

  • What Goes Into Your Credit Score?

    A good credit score is essential for purchasing a new place, a new car, or taking out a loan with better interest rates — but what factors go into the number?

    No Single Number

    First, there is no definite credit score — there are different credit score models. The credit reporting agencies TransUnion, Experian, and Equifax together give the VantageScore. The FICO score is another well-known and widely accepted model that was introduced in 1989. Creditors use the FICO score to evaluate past credit use for lending decisions.

    Factors of the FICO Score

    According to the FICO website, the score pulls from five different categories: payment history, amounts owed, length of credit history, new credit, and credit mix.

    Payment History (35%)

    This is the most important category — it looks at if you have made your credit payments on time. The score in other words reflects your trustworthiness and timeliness. Repeated late payments will damage your score.

    Amounts Owed (30%)

    This looks at how much of your available credit you are using. By standard, using about 30% is recommended. For example, if you have a $1,000 credit limit, try to use around $300.

    Length of Credit History (15%)

    This factor looks at how long you have held your credit accounts. The longer, the better — but if you have an old credit account that you have made many late payments on, that will not reflect well on your score.

    This category also explains why many people are encouraged to start a credit card as early as possible — especially if you are a college student.

    New Credit (10%)

    When you open a new credit account, it will decrease your score temporarily, for up to six months. Making new credit accounts however is not discouraged. Rather, you should not be opening too many in a short period of time.

    Credit Mix (10%)

    The credit mix looks at the different types of accounts you hold: credit cards, loans, and more. Credit cards are considered revolving accounts, where payments are made monthly and are flexible. Installment accounts like mortgage loans are fixed monthly payments. If you prove your responsibility to manage both, it will reflect well on your overall credit score.

    The biggest takeaway should be that above all, timely payments are significant in increasing your credit score. You can set up autopay functions like many credit card accounts offer, or set monthly reminders on your phone to manually make the payments.

    Although different credit scores have different calculations, these factors overall remain important across the board. Knowing these different factors will help you guide your decisions on credit spending, and opening new accounts.

  • 2020 Holiday Finance Guide

    As of November, over 20 million Americans are unemployed and receiving some sort of unemployment benefits. Those are harrowing numbers. With this in mind, nobody’s going to blame you for easing up on gifts this year; times are tough. Meanwhile, you may already be concerned about the state of your savings account. An unexpected bill or emergency car repair can always pop up when you’re the least prepared, that’s why it’s important to have your finances in check this holiday season. Whether you’re barely getting by or need some extra cash for the holidays, here are four ways to keep your finances in order this holiday season:

    1. Make a List (and Check it Twice)

    If you’re strapped for cash, now would be the perfect time to plan out your holiday budget. Calculate your expenses for the month (rent, insurance, etc.) and set realistic expectations for yourself. Next, estimate how much you will get paid for the month of December (Make sure to include holiday pay and any overtime!). It helps to write all of this information down on paper, or, you could always try using a budgeting app like Mint to track your spending. Now, with your finances tracked, plan accordingly. Maybe you’re all caught up on bills and won’t have to reduce your spending after all. Maybe your finances aren’t looking as healthy as you thought and have to take out a holiday loan. Whatever you do, try not to over do it this year. If 2020 has taught us anything, it’s to expect the unexpected, which in this case, could always manifest itself in the form of unanticipated bills.

    2. Get Your Credit in Check

    Speaking of bills, there’s no need for your credit card debt to skyrocket this holiday season. You may be considering opening a new credit card for the holidays, I mean, why not right? With retail credit cards, merchants offer heavy discounts on initial purchases and can offer cash back on in-store purchases. On the surface, this may seem like a good way to save money, and it can be! Just be mindful of your credit limits — maxing out your credit card could end up negatively affecting your credit score. In addition to a retail credit card, consider switching to a Tomo Credit Card! A Tomo card is a history-free credit card with flexible limits that will give you 1% cashback on all of your holiday purchases. A Tomo card is also interest free, so you won’t have to worry about any outstanding fees!

    3. Try a Side Hustle

    There is surely a shortage of side holiday hustles this year as a result of the pandemic, but there are still ways you can manage to make some cash on the side from the comfort of your own home!

    Try going through your closet or garage and use a selling app like Mercari. You can sell pretty much anything on the app and now is the perfect time to sell any unwanted clothes or knick-knacks you may have lying around. While you’re at it, try shopping around the app yourself for some deals on Christmas gifts!

    If you don’t have anything of value laying around to sell, try browsing through the Nextdoor app. Nextdoor is a community app that functions similarly to Craigslist. People in the community tend to request services in exchange for money such as garden work, pet sitting, tutoring, and more. Otherwise, if you’re more of a creative entrepreneur, I’ve seen people advertising homemade holiday treats and gift baskets up for sale on the app. The best part of the app is that you are only limited to buy and sell within your community, so you won’t have to worry about any shady business deals or scammers.

    4. Contactless gift ideas

    If Thanksgiving was any indication of what to expect for the holidays, then it’s safe to assume that holiday get-togethers will be kept to an absolute minimum this year. You don’t want your family to risk flying in from abroad, nor do you want to risk any chance of getting your eighty-something year old grandmother sick. Sure, you could always send them a gift in the mail, but in the theme of this year, why not go contactless?

    Nowadays, it seems like there’s a subscription box for everything. For Grandma, why not give the gift of knowledge (and caffeine) with My Coffee and Book Club? For Mom, help her save on groceries throughout the year with an Imperfect Foods subscription. For Dad, upgrade his swag with a GQ Best Stuff box. And for your siblings? If they’re of age, they might be delighted with a bottle of wine on their doorstep from Winc every month. But if your siblings are years away from the legal drinking age, then try surprising them with some monthly crafts from KiwiCo. Keep in mind, these are just several ideas out of hundreds of subscription boxes. You’re bound to find something both relevant and within your price range out there.

    However you choose to spend your holidays this year, make sure you stay safe and keep healthy! Happy Holidays!

  • The Waitlist, Some Changes, and What’s Next: An Update From Tomo

    This pandemic has no doubt been hectic for everybody. With millions of Americans losing their jobs, millions unemployed, and millions infected, millions of us are growing more and more frustrated. When the shelter-in-place orders began back in March, like most of you, we were worried about what the future would hold for us. As most of you know, working remotely presents its challenges. But we are reorganizing and getting back on track. We just wanted to take the time to write this to let you know that…

    We Hear You

    We have received countless inquiries about the Tomo waitlist and rightfully so. An overwhelming amount of you have been waiting for your card for months at this point, and we understand your frustration. As of now, we have over 100,000 people on the waitlist. Due to some changes related to the pandemic, we currently process all of our pre-approvals manually. The moment they are processed, we send out invites in waves and, thankfully, we will be sending out an increasing number of waves in the coming months. We recommend that over the course of these next few months that you keep an eye out for your invite. If you don’t receive an invite by then, please reach out to us. We are in the process of reorganizing our customer support and will be adequately prepared to answer any questions you may have for us moving forward. However, due to the volume of applications we have received, please keep in mind that we will be prioritizing the questions of current cardholders first.

    We know that sounds like a long time, but it will be worth it. Trust us. We have big plans for the future here at Tomo!

    What’s Changing

    Since the pandemic provided some unpredictable challenges, our credit card has had to make some fundamental readjustments. With a heavy heart, we must eliminate the Tomo Credit Card “2 for 2” cash back referral perk. We hope to be able to deliver you other more unique and personalized rewards in place of the “2 for 2” referral program, and we intend to work with merchants in order to create a user experience that you’d expect from “the credit card of tomorrow”. Don’t worry, you will still receive 1% cashback on all purchases and we will continue to offer you a history-free credit card with flexible limits and no hidden fees. Our goal here at Tomo has always been to help our members establish the financial security they deserve, not to profit off of their financial insecurity like the big banks do. For those of you that have referred members to tomo, fear not, as our new referral program will be released in the near future and you will still be awarded for those referrals.

    We can also offer one other awesome perk to you should you meet the requirements, and that’s up to 20% cashback. Yeah, you read the right. 20%. If 20% cashback is what you desire and you think you’re qualified, we encourage you to apply to become a Tomo ambassador! As ambassador, you will promote the Tomo card and encourage your community to sign up for one via a personalized referral code. For each person you refer that gets approved, you will receive an additional 1% cash back, with a maximum cap of 20%. That means that if you get 20 people to sign up, you’ll get that sweet 20%. Keep in mind though that the ambassador cashback bonus is valid for 3 months from the time each of your referrals is approved. Think you can do it? Apply to become an ambassador here!

    What’s in Store

    We cannot thank our members enough for their overwhelming support. Tomo has always believed that you are worth more than an arbitrary credit score. We have always been dedicated to helping our members build credit and save money, and, moving forward, we hope to win back your trust. As we proceed, we will be making adjustments to our card in order to better cater to our members’ needs.

    But first things first: I think that we can all agree that this year has just got to end already. When the pandemic begins to slow down, we promise to speed things up, and to be more prepared than ever to provide you with the experience you deserve from the credit card of tomorrow.

  • New to the U.S.? Start Building Your Credit Score Now

    Credit determines your financial future

    In the US, having good credit matters more than ever. Having good credit will ensure you qualify for affordable rates on student loans, auto loans, insurance, and mortgages, saving you tons of money and making it easier to pay them back in the long term. Credit can determine whether you can qualify to rent an apartment by yourself, finance your iPhone/car/furniture, or land your dream job.

    Establishing strong credit is the first thing you should do when you land in the U.S., and it all begins with your first credit card. Having a good starting card allows you to build a strong credit history quickly and easily.

    Source: Credit.org

    No one starts with a great credit score — it takes some time to build. The three major credit bureaus in the U.S. — TransUnion, Experian, and Equifax — consider three to six months of credit activity before they start updating your credit report.

    Starting your credit journey as soon as you arrive in the U.S. is one of the wisest things you can do for your financial future.

    Where do I start?

    Getting a credit card is the fastest and easiest way to begin building your credit score, but there’s often a catch — most credit card companies only issue credit to those who already have an established credit history. Because credit history is used as the main factor to determine the credit risk of an applicant, if you don’t have any credit history, it’s unlikely that you’ll get approved at all!

    This is where Tomo comes in… Tomo is a new generation of credit card that doesn’t require a credit score or security deposit to determine your creditworthiness. Tomo issues credit cards based on an evaluation of your banking history instead — your account balances, income, and spending trends. Tomo’s smart repayment system manages consistent on-time payments to help you build good credit, faster and more easily. Because Tomo is committed to helping you build good credit fast, it carries no fees of any kind! Did we mention Tomo offers a high cash back reward of up to 20%? You heard that right. Earning cashback while building credit has never been easier!

    Apply today and join the future of building credit.

  • Welcome to TomoCredit- CashScore, Weekly budgeting

    Today we are excited to announce that we are opening up the sign-ups for TomoCredit credit card. The next generation credit card designed for people with no credit history or credit score.

    At TomoCredit our vision is to create an a financial system that is open and accessible to everyone. TomoCredit is the first step in that direction.

    With the up and coming launch of this credit card, students, immigrants, and other financially underserved members of the population can start building credit without relying on credit cards that require a deposit or have prohibitively high fees. In addition to building credit, our customers can also start tracking their weekly expenses using Tomo’s CashScore features.

    Every time you swipe your TomoCredit card, we track your spending and use that to build your CashScore.

    How did we create CashScore? Our in house risk experts teamed up with industry leaders from Amex, WellsFargo, Citi bank to develop Tomo’s own proprietary algorithm

    Join us and let’s build the future of credit together!